Overview
German high streets stand at a critical juncture. The current Highstreet Report 2025 presents one of the most comprehensive analyses of the future of city center retail locations in Germany—addressing a central question: Which functional uses should high streets fulfill going forward? For property owners, investors, and retailers, the study provides a data-driven foundation for strategic decision-making in a market transforming faster than ever before.
The report was developed in collaboration with the City of Hanau, the German Federal Institute for Building, Urban Affairs and Spatial Development (Bundesamt für Bauwesen und Raumordnung—BBSR), cima Beratung + Management GmbH, ecostra, Aachener Grundvermögen Kapitalverwaltungsgesellschaft, Völkel Real Estate GmbH, and additional partners.
Gastronomy as the New Anchor Tenant Function
The report’s most significant insight: gastronomy is increasingly assuming the role that fashion retail dominated for decades. 47.6 percent of citizens desire greater gastronomic offerings in city centers (Source: ExWoSt Research Study Citizen Survey, BBSR 2024). Currently, 39.3 percent of high street floor space is occupied by gastronomic concepts—a surge that has accelerated significantly since 2020.
For property owners and landlords, this shift carries concrete consequences: the rental capacity of gastronomic concepts is structurally lower than that of traditional textile retailers—yet their frequency-driving effect is substantially higher.
Top Rents Under Pressure—But Not Uniformly
Top rents in German A-grade locations declined by an average of 1.8 percent in 2024 (Source: BNP Paribas Real Estate). In B- and C-grade locations, the decline was notably sharper at 3 to 7 percent. The causes are structural: the share of textile retail—traditionally the highest-rent-paying sector—continues to shrink. Across the 100 high streets analyzed, the apparel retail share fell to 27.1 percent of all storefronts.
Key Data Points from the Report
- 39.3% Gastronomy share on German high streets
- 85.9% of citizens desire more greenery in city centers
- 47.6% demand less shopping, more experience and leisure
- ~4.7% prime yield for commercial properties in top city locations in 2025
- −1.8% average decline in prime rents in 2024
- 160+ municipalities in North Rhine-Westphalia supported through the ZIO program
What Retailers and Business Operators Demand
42 percent identify parking availability as the primary issue. 29 percent call for improved cleanliness and public space quality. 17 percent wish for the settlement of attractive retail tenants and vacant space elimination.
Mixed-Use as the Dominant Future Model
The report identifies mixed-use development as the dominant paradigm for high street success. The mono-functional shopping street has become obsolete. Successful high streets of the future combine retail, gastronomy, office space, residential units, culture, and health services in an integrated concept.
Conclusions and Recommended Action
For property owners and investors, three actionable priority areas emerge:
- Actively manage the tenant mix: Strategic tenant selection now drives long-term value more than pure rent maximization.
- Leverage gastronomy as a frequency generator: High-quality gastronomic concepts drive foot traffic that benefits all retailers on a street.
- Reposition early: Properties that have not adapted to mixed-use models face accelerating obsolescence.
About UNIQUE RETAIL
UNIQUE RETAIL specializes in data-driven analysis of retail and real estate markets, providing strategic insights to investors, developers, and municipalities navigating Germany’s rapidly evolving urban retail landscape.
