Selling a retail property in the Eindhoven region: tenants, zoning, and price

Rental law partly determines the value

A retail space usually falls under Article 7:290 of the Dutch Civil Code (BW). Those tenants have relatively high protection: term protection and limited grounds for termination for the landlord. For a buyer, this means security regarding the rental income stream, but also limited freedom to use the building themselves or to redevelop it. Therefore, always explicitly state the contract type, duration and indexation.

Location within the core counts for more than the core itself

In Eindhoven, Helmond, Geldrop, Valkenswaard and Veldhoven, the same pattern applies: the core shopping area remains in demand, while peripheral streets have a harder time. Many municipalities are implementing policies to make shopping areas more compact; this can mean that space actually opens up for residential use or services at peripheral locations. Check the zoning plan (omgevingsplan) before you determine an asking price – a permitted residential function on the upper floor can substantially increase the value.

What buyers ask for

  • Lease agreement, security deposit and payment history
  • Split into retail space and upper-floor apartment (and whether this is arranged in the Land Registry)
  • State of the facade, shopfront and installations
  • Visitor flows and the occupancy of adjacent buildings
  • Possibility for transformation in case of vacancy

How to prepare

Create a file with the lease agreement, addenda (allonges), the floor areas, the energy label and a recent maintenance overview. If you are selling while let, calculate the initial yield at which you are offering it. If you are selling vacant, show which functions are permitted.

Also read selling retail property and the regional pages for Geldrop-Mierlo and Valkenswaard.

Sources