Commercial real estate offers returns of nearly 9%, with retail stores—specifically “Big Box” outlets—generating some of the highest profits.
These are large, standalone retail stores typically located outside city centers, in which real estate investment trusts (REITs), such as Premia Properties, are investing. Sources tell Euro2day.gr that this REIT is set to complete a “Big Box” project in Koropi this summer, which will house Tesla’s dealership in Greece.
Building Permits Are Rebounding
According to a new analysis by Alpha Bank, the number of new building permits for retail stores has been steadily recovering since the pandemic.
In the Economic Developments Bulletin, data from Alpha Bank show that the annual increase in 2025 stood at 10%, while the rise in terms of volume reached 41%. Among the other categories of commercial real estate, industrial buildings stand out, with the volume of new building permits having nearly doubled in 2025 compared to pre-pandemic levels.
“In the first two months of 2026, commercial real estate development strengthened further, as new building permits increased by 25% in number and 84% in volume overall. There was a notable increase in retail stores, educational buildings, and rental accommodations, while new building permits for offices decreased in number but increased in volume,” the report states.
As for commercial real estate yields, yields on “Big Box” stores hover around 7%, while annual returns on Ermou Street are below 6%.
“The average estimated yields for offices in Athens’ central business district ranged between 6% and 6.8% in 2025, with vacancy rates in these areas ranging from 5% to 9%.
“It should be noted that office yields vary, reflecting quality characteristics and technical specifications such as, among other things, energy upgrades, renovations, and modern facilities,” the bank’s analysts emphasize.
“A similar pattern is observed in both yields and estimated vacancy rates for retail units located on Athens’ main shopping streets. For commercial warehouses, although yields have been on a downward trend over the past five years (from an average of 9.4% in the second half of 2019, to 8% in 2025, respectively), they remain at higher levels compared to offices and retail spaces,” they add.
Premia and Trade Estates’ Plans
As in other European countries, Big Box retail spaces in the Greek market are attracting significant capital from institutional investors.
In Koropi, Premia is investing approximately 5 million euros in a property being developed on a 9,080-square-meter lot with a gross floor area of approximately 2,202 square meters.
At the same time, Trade Estates is moving forward with two more Big Box investments, a store model similar to IKEA’s. These include Top Parks Heraklion 2, a 25.5 million euro investment with a gross leasable area of 10,000 square meters, as well as the investment in Elliniko, which is now entering the construction phase.