The average rental price per m² for retail space in a Dutch city centre varies considerably: expect roughly 150 to 600 euros per m² per year at an A-location, depending on the city, the street and the size of the space. At B- and C-locations, prices are significantly lower, sometimes by a factor of two to three. Location is therefore the most important price-determining factor, but not the only one. In this article we answer the most frequently asked questions about rental prices for retail space in the city centre, from location type to service charges and room for negotiation.
What determines the rental price of retail space in a city centre?
The rental price of retail space in a city centre is primarily determined by location, footfall and the type of retail area. In addition, the floor area, the layout of the space, street visibility and the tenant’s sector all play a role. The more consumers pass the door, the higher the rental price generally is.
Specifically, the following factors are involved:
- Location type (A, B or C): The position within the shopping street or retail area is the biggest price driver.
- Footfall: Streets with high pedestrian flows justify higher rents, as visibility directly contributes to turnover.
- Floor area: Larger spaces generally have a lower rental price per m², while smaller units in prime locations tend to command a higher one.
- Condition of the property: A renovated, move-in-ready space commands more than a property that still requires refurbishment.
- Lease term: Landlords sometimes offer more favourable terms for longer contracts, which affects the effective rental price.
The interplay of these factors makes it difficult to assess whether an offer is reasonable on the basis of a single figure. Knowledge of the specific street and the current market level is indispensable for that. Specialist retail agents have access to that market data and can quickly assess whether a asking price is in line with comparable transactions.
How much rent do you pay per m² at an A-location versus a B-location?
At an A-location in a major Dutch city you typically pay between 300 and 600 euros per m² per year for retail space. At a B-location in the same city, that figure is between 100 and 250 euros per m² per year. The difference is considerable and reflects the direct relationship between footfall and the commercial value of the location.
An A-location is the busiest shopping street or the core area of a shopping centre, where the most passers-by walk and visibility is at its maximum. Well-known examples are the Kalverstraat in Amsterdam, the Lijnbaan in Rotterdam or the Grote Marktstraat in The Hague. At such locations, competition for space is fierce, which keeps rental prices high.
A B-location borders the core retail area or is situated in an approach street. Footfall is lower, but the location can still be attractive for certain sectors, especially if the rental price reflects the lower revenue potential. C-locations, such as neighbourhood shopping centres or peripheral areas, have the lowest rental prices but also the smallest target audience.
For a starting entrepreneur it is tempting to opt for a B-location because of the lower rental burden. But the question is always whether the lower rent outweighs the lost turnover due to fewer passers-by. That trade-off requires concrete market knowledge, not a rule-of-thumb approach.
Does the rental price differ per city, and if so, by how much?
Yes, the rental price for retail space differs considerably per city. Amsterdam has the highest rental prices at A-locations in the Netherlands, followed by Utrecht and Rotterdam. In medium-sized cities such as Groningen, Eindhoven or Arnhem, rental prices at comparable A-locations are structurally lower, sometimes half or less of the Amsterdam level.
The explanation lies in the size of the catchment area, tourism, the purchasing power of the local population and the overall attractiveness of the city centre. Amsterdam attracts both national and international retailers, which drives up competition for prime locations. In a city like Groningen or Breda, demand for A-locations is smaller, but for regional retailers such a location can be just as commercially interesting.
KroesePaternotte operates throughout the Netherlands and holds lease contract data going back to 1984, enabling the company to indicate per street and per city exactly what market-conforming rental prices are. That level of granularity is something a generic search query or a portal website cannot provide.
What are service charges and how do they affect the total rental burden?
Service charges are additional costs on top of the base rent, paid by the tenant for shared facilities and management of the property or the retail area. Think of security, cleaning of common areas, marketing contributions and management costs. In shopping centres, service charges can amount to 15 to 25 percent of the base rent per year.
When assessing a rental price, it is essential to always look at the total rental burden: base rent plus service charges plus any VAT obligations. An attractively priced base rent can still prove expensive due to high service charges.
Service charges are settled annually on the basis of actual costs. When entering into a lease, always ask for an itemised budget of the service charges and the settlement for the previous year. This way you avoid surprises afterwards. For retail space in a standalone property (not a shopping centre), service charges are generally lower or absent, but maintenance obligations may be distributed differently.
How do you know whether the asking rental price is market-conforming?
You know whether an asking rental price is market-conforming by comparing it with recent, comparable transactions in the same street or retail area. That requires access to current lease contract data, as public portals show asking prices, not rents actually paid. Without that transaction data, it is virtually impossible to form a fair judgement.
There are a few practical ways to orientate yourself:
- Request multiple quotes for comparable spaces in the same area, so that you have a reference point.
- Consult a specialist retail agent who has access to closed transaction data and can indicate per location what is realistic.
- Pay attention to incentives: A landlord who offers rent-free periods or a contribution towards fit-out costs is indirectly indicating that the asking price is on the high side.
Through KroesePaternotte’s listings you gain insight into available retail spaces, including price indications based on current market data. That provides a more realistic picture than what public portals typically show.
Can you negotiate the rental price of retail space?
Yes, the rental price of retail space is almost always open to negotiation. Landlords generally work with an asking price that leaves room for negotiation, especially in markets where vacancy plays a role or when a property has been available for some time. In addition to the base rent, the rent-free period, rent indexation and the lease term are also negotiable.
Effective negotiation requires knowledge of the current market level. Anyone who does not know what comparable spaces in the same street cost negotiates without a reference point and quickly accepts a price that is higher than necessary. Landlords know this and will rarely voluntarily share what other tenants pay.
A specialist retail agent negotiates on your behalf on the basis of concrete market data. This not only results in a better rental price, but also better contractual terms, such as a break option after three years or a longer rent-free period for fit-out. For an entrepreneur renting retail space for the first time, this is the difference between a market-conforming deal and an overpriced agreement.
KroesePaternotte guides retailers and entrepreneurs through the entire process from search to contract completion. Because the company is in daily contact with owners of the best retail locations in the Netherlands, including properties that are never publicly listed, the added value lies not only in the negotiation itself but also in access to the right supply. Get in touch to discuss what KroesePaternotte can do for your search.
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