ATLANTA—Despite uncertain economic prospects and rising costs, international expansion is still high on the priority list for retailers this year. So says the latest CBRE Research “How Active Are Retailers Globally?” survey.

CBRE reveals American retailers are some of the most active, with 16% of brands looking to expand overseas. Specifically, 43% of American retail brands are looking to Japan, China, and Hong Kong as top expansion destinations. The US in a tie with Germany and the United Kingdom, which also report 16% of retail brands looking beyond their borders. Meanwhile, 11% of Italy's retailers are looking to expand globally.

“Given the ongoing challenges retailers face from cost escalation, successful delivery of omni-channel and changes in consumer behavior, it is increasingly important to have a strong network of stores to effectively represent their brand,” says Anthony Buono, executive managing director of Retail Services at CBRE. “Smart retailers recognize that the physical store environment delivers a culturally-important, positive experience for consumers and as such, will continue to open stores.”

Globally speaking, 47% of retailers in CBRE's survey say unclear economic prospects and cost escalation, largely due to increases in rental costs and lack of quality retail space, are the biggest concerns for 2015. But that's not stopping them from moving ahead.

Overall, Germany ranks highest for the second straight year as the most targeted retail market in the world with 40% of retailers planning to open a store there in 2015. The UK ranks second at 33%. France comes in third at 31%. The US ranks seventh at 21%.

Why Germany? The CBRE report says the keyword is opportunity. Retailers have an opportunity to target over 30 large cities with high purchasing power in Germany. The UK, and especially London, is still a popular target for overseas retailers as demand for store space remains resilient. France follows closely behind the UK attracting retailers due to its mature market with several strong cities and a large number of successful shopping centers.

Despite all the talk of e-commerce rising, the bricks-and-mortar store is still the destination of choice for consumers as retailers continue to open stores in diverse locations. According to the CBRE report, 21% are planning to open between one to five stores in the Europe, Middle East and Africa (EMEA) region, and 11% of retailers planning to open between one to five stores in North America by the end of the year. Finally, large-scale expansion plans with retailers looking to open more than 40 stores has scaled back to 9% in 2015.

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