Retail real estate back in the spotlight
October 7, 2025
Fund Manager Collin Boelhouwer looks ahead with cautious optimism
Retail FundAfter years of caution, the Dutch retail market is once again awakening as an attractive asset class for institutional investors. Demand for retail space is growing, vacancy is declining, and foreign investors are showing increased activity. Yet, Collin Boelhouwer, Fund Manager of the Bouwinvest Dutch Retail Fund, warns against premature euphoria. “The outlook is more positive, but success requires a long-term vision and a sharp focus on quality and sustainability. That is exactly what our fund delivers.”
How did the past year go for the Bouwinvest Retail Fund?
“The leasing market is clearly showing more activity: vacant units are easier to let and we increasingly see multiple bidders. Our occupancy rate remained stable and tenants are more active in the market again. That gives confidence and underlines the robustness of our portfolio. However, value growth lagged, which meant returns came in somewhat lower than hoped. Still, the fund performed steadily on its key fundamentals. Our track record is strong: a 10-year property return of 5.9% per year versus 2.4% for the MSCI benchmark, and five consecutive MSCI awards (2019–2023) as Best Performing Specialist Fund.”
Media report that foreign players are becoming more active. Do you see this reflected in your fund?
“That trend is indeed visible in the retail market, particularly among investors using leverage to pursue higher yields in riskier assets. In our fund, however, we are seeing growing interest from Dutch institutional investors seeking stability and predictability. On their behalf, we invest in retail properties that match their long-term commitments. The core segment is attracting healthy interest. Our focus remains on quality, long-term value and manageable risks with attractive returns.”
What strategic choices do you make as a fund manager now that interest is picking up?
“Optimisation is the key word. We are selling smaller assets that no longer fit, such as two retail properties in Breda recently, and we are focusing on larger assets where we can add value — for example through sustainability measures or by improving the tenant mix. This includes adding a sustainable supermarket to strengthen our Convenience portfolio, and making properties in prime retail streets Paris Proof by replacing façades and glazing. Major redevelopments are giving way to targeted upgrades. Our focus is on segments with long-term value, especially core convenience retail and attractive shopping areas.”
How do you determine your investment strategy in a market full of opportunities and uncertainties?
“We aim for defensive growth and stable cash flows, in line with the needs of pension funds and insurers. Sometimes this means hitting pause and only investing if an asset truly contributes to our strategic objectives. The long-term focus remains on value creation and optimising the existing portfolio.”
How does the fund stay agile in a volatile market?
“By being able to move quickly when opportunities arise. A good example is the expansion of the Nike store in Rotterdam, where together with the retailer and the municipality we combined and upgraded two properties. This created Nike’s largest European flagship store, gave the city a new landmark, and secured stable income. Flexibly seizing such opportunities keeps us on course.”
What sets the Retail Fund apart?
“Our strength lies in a long-term vision and continuous optimisation. The Dutch Retail Fund has won the MSCI award for Best Performing Specialist Real Estate Fund in the Netherlands five years in a row. That proves our focus on quality and sustainability pays off. We are selective in acquisitions, continuously invest in sustainability, and are working purposefully towards a Paris Proof portfolio by 2045.”
How do you engage tenants in sustainability?
“That is essential. Large tenants like Nike often already have sustainability high on their agenda, but smaller retailers sometimes need more guidance. We demonstrate the benefits: not only for the environment, but also in energy savings and future resilience. By aligning investments with natural replacement moments, this becomes a seamless process. Following CRREM pathways gives us insight into our progress. Data remains a challenge, but step by step we are moving forward.”
Can you combine sustainability with financial returns?
“Absolutely. For us, sustainability is not a goal in itself, but a way to create financial value in the long term. We always assess measures based on their effectiveness and contribution to long-term returns. Sustainable retail buildings are in higher demand and enhance value development. They are also easier to lease. The challenge is balancing ambition with feasibility. By focusing on measures with demonstrable impact, we achieve both sustainable and financial goals.”
How do you deal with the growing pressure around ESG reporting?
“The industry is calling for more transparency and standardization. We welcome that, but reporting obligations are increasing significantly. That is why we focus on the data and reporting that truly give investors insight into performance — ensuring sustainability is not just a paper exercise. Improved data quality helps us steer towards future-proof real estate, though comparability across years remains a challenge. Ultimately, sustainability and transparency are tools to create value and manage risks. Financial returns remain the guiding principle.”
What are the opportunities and challenges for retail real estate in the coming years?
“Consumer behaviour is changing rapidly: convenience, experience and sustainability are becoming more important. Technology accelerates this through omnichannel retail and new services. Not every property or location will remain attractive as a result. The opportunities lie in future-proof centres with a strong local function, such as neighbourhood shopping centres or high streets with a unique offering. At the same time, we must remain critical, as dynamics can shift. Investing in quality, strong tenants and sustainability keeps the portfolio resilient.”
What message do you want to give to investors considering retail real estate?
“Adopt a long-term view and don’t get carried away by today’s headlines. Retail real estate offers plenty of opportunities if you invest in the right locations, with strong partners, and with sustainability as an integral part of the strategy. With vision and discipline, investors can diversify and achieve solid returns.”
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