Why private investors are shopping for retail real estate

Investment in retail has for most of the past decade been dominated by institutional investors. 

But in recent months, private investors have been increasingly getting in on the act, with a greater share of investment in retail real estate now in the hands of private capital and family offices, according to JLL data.

Private capital’s share of overall investment in retail across EMEA more than doubled between the middle of 2022 and mid-2023 to 15%, according to JLL data. At €1.76 billion (US$1.88 billion), investment by private capital in retail was at its highest for a six-month period since 2019. In Spain for example, family offices and private investors this year bought units in Madrid, while in France, Vicartem REIM sold the St Hermentaire Draguignan retail park to a private investor.

Private capital has long invested in real estate. But the shifting demand to retail comes as larger investment groups are pausing for thought, “creating a chance for private investors to invest in a less competitive market”, says Sandra Ludwig, Head of EMEA Capital Markets at JLL...