The prime pitch on Bahnhofstrasse, between the main railway station and Paradeplatz, is so tight that if you don’t have a great brand name, you might as well forget moving there. Expect to find retailers here including Hennes & Mauritz, Hermes, Christian Dior, Chanel, jeweller Bucherer and arguably the classiest co-op in the world, St Annahof.
“On Bahnhofstrasse, there aren’t many units that come on the market and when they do, you’ve to act fast,” says Eric Howard, who owns property consultant HCI Internationale Immobilienberatung. “You’ve got at least three people queuing up whenever a unit comes on to the market. If you’re a well-known firm it does enhance your chances. We had a client a year ago, and they didn’t have a chance because Bulgari took it.”
Prime rents on Bahnhofstrasse go as high as SFr3,500 per m2 a year, though there is one example of a SFr4,000 per m2 rent, which local agents describe as “exceptional”.
The lynchpins are the big department stores such as Jelmoli. Two years ago, it sold all its leases apart from its most profitable in Bahnhofstrasse.
Jelmoli’s behaviour is typical of the department stores here in that there have been no movers recently. Smaller stores move more often. The latest to arrive is Grand Optical.
From Paradeplatz to the lake, retail peters off.
Behind Bahnhofstrasse is the smaller, rag-trade-dominated Storchengasse. This is where you’ll find Armani and Versace. Rents here are about SFr2,500 per m2. HCI reports it is about to do a deal there at that level.
Glatt Zentrum is Zurich’s major shopping centre. When Jelmoli disposed of its leases, its store in Glatt Zentrum was split and let within months. “It’s probably one of the chic-est shopping centres in Switzerland,” says Howard. “It’s located to the north. HCI put Tie Rack in there at around SFr2,000 per m2 last year.”
Agents believe that the retail elements of major new proposed developments such as Eurogate – in the heart of the city – over and around the city’s main rail station or the Maag Site Plus – the former industrial quarter located to the city’s west – will have little effect on the strength of existing retail areas or the best shopping centres.
Planned for 20 years under its previous ownerships, the new owner of Eurogate, UBS, is looking to finance this Canary Wharf-type project through its UBS Asset Management arm. It has the support of the Canton and the City of Zurich.
The 125,000m2 Maag Site Plus will be mainly office and residential, and is owned by Maag Holdings, a consortium of Coop Zurich-Linth, Welti-Furrer, the City of Zurich and other private landowners.
