Strategic international expansion into untapped European markets remains key for driving profitable growth
News release
12 November 2025
Strong demand and higher margins drive return to physical stores across top cities
Categories:
Europe's premier retail leasing markets are positioned for continued strength in 2026, with prime destinations maintaining robust appeal for retailers seeking expansion and market entry opportunities across major European cities, according to new research from JLL's European Retail City Profiles, 2025 edition.
The sustained demand reflects retailers' strategic focus on enhancing physical footprints, capitalising on expected growth in physical retail spending, and strengthening omnichannel experiences following recent market challenges.
Prime locations deliver superior returns
"Retailers positioned in prime locations with compelling propositions can achieve exceptional returns across Europe's leading cities," said Mark Smith, Lead for EMEA Cross Border & UK Retail Occupiers at JLL. "These prime destinations benefit from high-density retail spending, substantial footfall, significant tourism expenditure, and unparalleled brand exposure opportunities. Moreover, physical stores demonstrate on average 10% greater profitability in fulfilling sales and processing returns compared to their digital counterparts.”
2026 Outlook
JLL forecasts Europe's top retail leasing markets will remain healthy in 2026, though new store openings and lease agreements are expected to gradually normalize as high-quality retail space becomes increasingly scarce. Rising rents may create affordability challenges for some retailers, potentially triggering strategic portfolio reviews and creating opportunities for better-positioned operators.
About JLL
For over 200 years, JLL (NYSE: JLL), a leading global commercial real estate and investment management company, has helped clients buy, build, occupy, manage and invest in a variety of commercial, industrial, hotel, residential and retail properties. A Fortune 500® company with annual revenue of $23.4 billion and operations in over 80 countries around the world, our more than 113,000 employees bring the power of a global platform combined with local expertise. Driven by our purpose to shape the future of real estate for a better world, we help our clients, people and communities SEE A BRIGHTER WAYSM. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.