Tecnocasa data confirms the potential of Florence’s retail sector. Columbus International Real Estate guides international investors toward the city’s most strategic locations.
The commercial real estate market continues to deliver compelling numbers for investors seeking yield and stability, and Florence stands out as one of Italy’s most promising markets. According to research from Tecnocasa’s Studies Office, retail properties in the Tuscan capital generate an annual gross yield of 10.3%, outperforming Milan and trailing only Rome among Italy’s major cities.
Naples leads the national ranking with 12.4%, followed by Palermo (12.3%), Rome (11.1%) and Turin (10.6%). Florence takes fifth place, ahead of Verona (9.1%) and Milan, which closes out the ranking at 8.9%.
A Growing Market, A Favorable Moment to Invest
The retail sector posted strong growth in 2025. According to Italy’s Revenue Agency, retail property transactions rose 7.0%, totaling 46,036 deals for the year. In the second half of the year, one in four purchases, or 25%, was driven by investment purposes.
Demand is concentrated in smaller footprints, under 100 square meters, with investors typically targeting gross annual yields between 9% and 10%. For premium locations, where vacancy risk is minimal, investors accept lower yields in exchange for greater long term security, a trade-off well understood by international buyers.
Why Florence Appeals to Foreign Investors
“Property positioning remains fundamental, but today the reliability of the business occupying the space matters increasingly as well,” notes Tecnocasa. High foot traffic locations, whether in the historic center or in the city’s busiest tourist areas, remain the most sought after.
Pricing trends reinforce this picture. Over the past decade, values for storefronts on high traffic streets have declined 18.5%, while those on secondary streets have dropped 21.9%. That pullback has made market entry more accessible, at a moment when yields remain among the strongest in the country.
Accessing the Florence Market with Columbus International
For international investors, identifying the right locations in Florence requires deep knowledge of the local market, neighborhood dynamics and repositioning opportunities. This is where Columbus International Real Estate comes in.
Headquartered at Rockefeller Center in New York, with strategic offices in Miami, Milan and Florence, Columbus International is more than a real estate agency. It serves as a premier market observatory, acting as a vital link between luxury developers and an elite international clientele. Specializing in the Italy-U.S. corridor, the firm guides Italian investors through the American market while introducing American buyers to the finest real estate opportunities in Italy.
Columbus International’s brokers in Florence bring detailed knowledge of the local retail landscape, from the highest traffic corridors in the historic center to emerging areas with strong appreciation potential, offering investors tailored support at every stage of the transaction, from property selection through closing.
For more information on investment opportunities in Florence: info@columbusintl.com
