New study

More and more vacancies in Graz city center

Herrengasse in Graz - many stores are empty.

(Bild: Jauschowetz Christian)

More and more stores in Graz are standing empty: a new study is now fueling the debate about city center retail. According to the study, there are significantly more vacant spaces than in the previous year, especially in the supposedly attractive area around Herrengasse.

There is no end to the bad news for Graz city center retail. A few weeks ago, H&M announced that it would be closing its store on Hauptplatz. Manner and Cafe Sacher had already announced their withdrawal from Graz - Sacher will close at Easter. In addition, footfall in the city center has also declined recently - one million fewer people were counted in the city center in 2024 than in the previous year.

More vacancies, especially in prime locations
Now a new study on vacant retail space in Austrian city centers is fueling the discussion even further. Although the vacancy rate in Graz in 2024 was not exorbitantly high compared to other Austrian cities, it has nevertheless risen significantly. For many years, it remained constant at around four percent, but is now at 5.1 percent - a record high. The development in the so-called A-location (the area around Herrengasse and Hauptplatz) is particularly alarming - the vacancy rate there is 5.5%, which is an increase of 4.6% compared to the previous year and is even significantly higher than in the Corona years.

City Councillor Günter Riegler

(Bild: Marija Kanizaj)

ÖVP City Councillor for Economic Affairs Günter Riegler sees the figures as confirmation of the warnings he has been making in recent months: "I have been warning of a negative development in the city center for some time - now, unfortunately, we have it in black and white. So far, Mayor Kahr and the Greens have shown no willingness to help the city center economy and put money into it. Hopefully this is now a wake-up call!" As a solution, he calls for a new parking guidance system, a strengthening of the city management and the creation of a vision for the future of the city center with international experts.

Mayor Elke Kahr says she is well aware of the problem, but: "Many aspects of the problem cannot be solved at municipal level. People have less money to spend on shopping and are buying more and more online," she says. In addition, the landlords of retail space also have a responsibility: "Rents also need to be adjusted so that retailers can still afford them. Many retail spaces are also in properties that belong to us as a city. And almost all of them are rented out because we have adjusted the prices," says the mayor.

Talks between landlords, city management and the city are planned for the near future. Kahr also wants to continue working on making the city center more attractive: "We are already setting the tone with the expansion of public transport and increased greening - we will soon be starting with the redesign of Tummelplatz."