International Retail Brands Reach a Record in Germany

The property climate continues to cool – and yet international retail brands are pushing into Germany’s prime high-street locations more strongly than rarely before. In the first quarter of 2026, their share of leasing enquiries reached a record 56 per cent (Source: JLL). While the overall mood remains grey, the premium high-street market shows a remarkable counter-movement. Anyone letting space or looking for locations should understand who is arriving – and why now.

Record: 56 per cent of leasing enquiries come from international brands

The share of international retail brands seeking to lease new space in Germany reached a peak of 56 per cent in the first quarter of 2026 (Source: JLL). This indicates that Germany’s inner-city shopping locations remain unabatedly attractive for global players. Already now, the number of recorded closings by international labels in the top markets is above the ten-year average (Source: BNP Paribas Real Estate).

This is noteworthy against the backdrop of overall subdued demand: the Deutsche Hypo Real Estate Climate Index fell in June 2026 to 79.4 points (−19.3 per cent year-on-year). That international brands nevertheless expand shows these are strategic leasings – long-term location decisions taken independently of short-term cycles. According to BNP Paribas Real Estate, international brands account for 35 per cent of contracts, and German A-cities for another 35 per cent.

These brands are expanding in Germany in 2026

The list of new and expanding international labels is long. Focus sectors are fashion, beauty and sport (Source: JLL/BNPPRE, Q1 2026):

• Victoria’s Secret – lingerie brand (market entry)
• Moida K-Beauty – Korean cosmetics chain
• Alo Yoga – athleisure
• Lefties – fashion from the Inditex family
• Coolblue – Dutch electronics retailer
• Lager 157 – Swedish fashion chain
• Skins – perfumery chain

Established brands such as Jack & Jones and Primark also opened new stores. The apparel sector defended its top position with 28,700 sqm or a 28 per cent share of leasing volume, followed by food service at 21 per cent – where Edeka, Goldies and “60 seconds to napoli” were among the most expansive concepts.

Where demand concentrates: metropolises and A-cities

The market shift is unambiguous: 49 per cent of leasings in the first quarter of 2026 fell on Germany’s ten largest cities – the highest value since Q3 2023 (Source: JLL). Berlin led with 23,700 sqm, up 91 per cent versus the prior-year quarter. Düsseldorf (7,500 sqm, +47 per cent) and Hanover (4,700 sqm, +62 per cent) followed at a distance.

For global brands, A-cities are stage and proof at once: a flagship in the best location is brand message and frequency guarantor. Precisely for that reason, demand for the few prime units remains high, even as the overall market mood is subdued.

Sectoral shifts: where international brands are moving in now

Notable is the shift between sectors: classic fashion continues to dominate leasings, but the share of beauty, sport and athleisure concepts grows above average. Alo Yoga, Skims, Lululemon and Vuori show: the sport and wellness sector is developing into an independent prime retail segment with high willingness to pay and large store formats. Beauty is booming, driven by Korean K-beauty brands such as Moida or Innisfree, but also by established European players such as Charlotte Tilbury, Rituals and Douglas. The food service sector, at nearly a quarter of leasing volume, also creates growing demand pressure – concepts such as “60 seconds to napoli” or “Goldies” show that modern gastronomy with an international ambition has become an integral part of prime locations.

For owners, this sectoral diversification is an opportunity to reorganise the tenant mix. Where a fashion monoculture prevailed, curated mixes with a markedly more robust frequency and turnover base are now emerging. The leasing task shifts from classic space brokerage to active portfolio design – not every unit needs to be let to the same sector, but according to overall strategic fit for the street.

Countries of origin: where the new brands come from

A look at the origin of expanding brands shows a clear shift versus previous years. The US remains, with brands such as Victoria’s Secret, Alo Yoga and Skims, the most important origin region. Scandinavia enters the German market with Lager 157 (Sweden), Weekday, Filippa K and Ganni. From the Netherlands, Coolblue expands in several cities with experience stores. Asia contributes another K-beauty concept with Moida to Berlin and Düsseldorf – complemented by Chinese streetwear brands such as Bosideng and HLA showing presence in Berlin.

The Spanish Inditex family also strengthens its presence. After Zara, Massimo Dutti and Pull & Bear, Lefties is now rolling out a lower price segment – a clear signal that Inditex continues to see the German market as a strategic priority. This diversity of countries of origin is new: where US brands dominated in previous years, new entrants in 2026 spread across a significantly broader international spectrum. This raises the resilience of German high-street demand against regional cyclicality.

Competition for scarce prime locations: how leasing practice is changing

Competition for the truly good units is markedly changing leasing practice. For absolute prime locations, structured bidding processes are now common: owners receive several serious enquiries and select on tenant reputation, concept fit and contract terms. Classic “first-come, first-served” leasings are barely usual on prime addresses anymore.

For international expanders this means: presence with owners and brokers must be built early. Those who only enquire when a space is publicly marketed often arrive too late. Successful brands cultivate long-term contacts, work with specialist retail advisors and accept framework conditions such as turnover-rent components, longer commitments or investment agreements for fit-out. Deposits and the legal form of the lease are also increasingly individually negotiated – the standard contract is losing importance.

Impact on rent structures

Strong demand from international brands is increasingly reflected in the rent structure of prime addresses. While JLL’s Q1 2026 data show Munich‘s Kaufingerstraße unchanged at EUR 340/sqm/month, Düsseldorf’s Königsallee jumped 7.4 per cent to EUR 290/sqm in the same quarter – a direct consequence of the competition among international brands for Kö addresses. In Berlin, where Tauentzien eased slightly to around EUR 285/sqm, new leasings shift increasingly to Kurfürstendamm and district locations such as Hackescher Markt. In Frankfurt, Goethestraße as a compact luxury boulevard is picking up significantly, while the Zeil holds at a stable level.

For owners, this trend signals a selective but clearly positive price movement in genuine prime locations. Turnover-rent components are becoming standard, often combined with a base rent and a variable component depending on gross turnover. This structure binds owners and tenants more closely, distributes risk more fairly and, in success cases, enables significantly higher revenues than classic fixed-rent contracts. For investors valuing prime assets, analysis of these turnover-rent clauses is increasingly the decisive value driver – a pure fixed-rent calculation systematically underestimates income potential.

What this means for owners and retailers

From an owner perspective, the message is clear: real prime locations remain liquid even in a cooling market and magnetic for international tenants. The decisive lever is no longer location alone, but the curated tenant mix – international flagship brands lift frequency, image and thereby rental value. Simply occupying space is not enough; the point is the right brand at the right place.

For retailers and expanding brands, the reverse applies: competition for the best units is tightening. International expanders act fast and strategically – whoever wants a prime location secures it early. In our observation, price alone is increasingly not the deciding factor; access to the right space at the right time is.

Outlook 2026/2027: demand remains strong, supply tightens further

The trend is likely to continue in the coming quarters. The pipeline of new international brands is well filled: US concepts such as Aritzia, Rothy’s and Nike Well Collective, European brands such as Sézane and & Other Stories (H&M family) have Germany marked as an expansion target. At the same time, supply of prime space continues to tighten – the stock of tradable prime addresses is structurally limited.

For rent development, this means an upward-directed trend in prime segments of A-cities, while secondary locations and B-cities continue to develop in a differentiated way. For owners, less the general market dynamic than the ability to make their space fit for the demanding international concepts becomes decisive – encompassing floor plan, facade, ground-floor design and readiness to invest in individual concepts. Those who deliver this adaptation secure connection to the currently most dynamic demand group in German retail.

Frequently asked questions

Which international brands are expanding in Germany in 2026?

New and expanding international brands include Victoria’s Secret, Moida K-Beauty, Alo Yoga, Lefties (Inditex), Coolblue, Lager 157 and Skins; established brands such as Jack & Jones and Primark also opened new stores (Source: JLL/BNPPRE, Q1 2026).

How high is the share of international brands in leasing enquiries?

In the first quarter of 2026, the share of international retail brands in leasing enquiries in German prime high-street locations reached a record 56 per cent (Source: JLL).

Why do German prime locations remain attractive to international brands?

A-cities offer high frequency, an international audience and representative flagship locations. Even with muted overall demand, strategic long-term leasings are executed here – 49 per cent of deals in 2026 fell on the ten largest cities.

Which sectors drive expansion?

Focus sectors are fashion, beauty and sport. Apparel leads with 28 per cent of leasing volume, followed by very expansive food service at 21 per cent (Source: JLL, Q1 2026).

From which countries do the new brands come?

The US remains the most important origin region (Victoria’s Secret, Alo Yoga, Skims). Demand is complemented by Scandinavian brands (Lager 157, Weekday, Ganni), Dutch concepts (Coolblue), Asian beauty brands (Moida K-Beauty) and the Spanish Inditex family with Lefties.

How is leasing practice changing in prime locations?

For prime addresses, structured bidding processes have become common. Owners choose on tenant reputation, concept fit and contract conditions. Turnover-rent components, longer commitments and individual fit-out arrangements are increasingly standard.