Lucerne's shopping miles: expensive, sought after and dominated by chains!

Lucerne's shopping miles: expensive, sought after and dominated by chains!

Lucerne's shopping miles present themselves as sought-after locations with a high density of international chains and stable rents. A detailed study by real estate consultant CBRE has shown that the city offers above-average purchasing power compared to other Swiss cities. These findings are based on an analysis of various factors such as store rents, vacancies and the proportion of international brands in the city's three main shopping streets. Loud Lucerne newspaper Rents in Lucerne have generally increased, indicating high demand for commercial space.

Grendelstrasse, known for its luxurious shops, is the most expensive shopping mile in Lucerne with a top rent of 5,000 francs per square meter. A rent comparison shows that Grendelstrasse is even more expensive than Basel's Freie Strasse and Berner Spitalgasse, but cheaper than Zurich's Bahnhofstrasse. The displacement of local shops by chains is particularly noticeable on this street, with 96% of shops belonging to international chains. Additionally, Grendelstrasse has a vacancy rate of 0%, although the closure of Credit Suisse could potentially create new retail space.

The other shopping miles

Hertensteinstrasse, which houses 57 stores over 350 meters, has a chain share of 78%, with 42% of the stores representing international brands. The prime rent on this street is 2,200 francs and the vacancy rate has been reduced to 3.5%. On Weggisgasse there is an even higher dominance of international chains with 97% of the shops. The customer frequency in this mile is the highest of the three, with the prime rent being 2,500 francs per square meter.

Overall, Lucerne has over 1,300 retail branches to offer a wide range of shopping options, particularly in the areas of gastronomy, specialist retailers for nutrition, personal care and clothing. What is particularly striking is the opulent range of watches and jewelry, which stands out from other cities. The study by Immocompass, which was commissioned by the city council, finds a strong change in the retail market, with numerous new openings in the old town and the decline of traditional sectors such as clothing and toys.

Purchasing power and rental prices

Purchasing power in Lucerne exceeds the national average and is higher than in cities such as Bern, Basel, Geneva, Lausanne, Winterthur and St. Gallen. Only Zurich has an even higher purchasing power. According to the research, an impressive 87% of the shops on Lucerne's three main streets are international chains, underlining the attractiveness of the location. The median rent for retail space has also developed: in 2018 the median was over 429 francs per square meter, while the level in 2015 was 386 francs per square meter.

In the best locations in the city, such as Schwanenplatz or Pilatusstrasse, rental prices are between 1,200 and 3,000 francs per square meter. In contrast, rents outside the old town are usually below 600 francs per square meter, indicating a strong price gap.

City manager Erich Felber confirms the high demand for retail space, although availability is limited, especially in A locations. The city has over 40 potential applications for new retail space, including from internationally known brands that are planning to move in in 2026. In order to meet demand, a vacancy and settlement platform called “LeAn” will be set up, which will provide an overview of available ground floor locations in the city center.

In summary, Lucerne's shopping streets are heavily influenced by chains and have high purchasing power. The city appears to be ready to face the challenges of the retail market and to further revitalize the city center through innovative approaches.