RETAIL Key features of the sector in Spain 2016-2017 - CBRE
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Key features
of the
RETAIL
sector in Spain
ANNUAL REPORT
2016-2017
Contents
Introduction
4
01 02 03 04 05 06
Economic The Digital Transformation Retailers High Street Main Shopping Shopping Centre Investment
Backdrop in the Retail sector Centre Indicators and Development
6 10 22 32 54 60
E-Commerce 12 Fashion 23 Madrid 33 Investment in Europe 61
In-store digitalisation 16 Speciality Retail and Barcelona 39 Shopping Centre and
Digital tools: Shopping Accessories 27 Other cities 42 Retail Park 62
Centres 18 Cosmetics and Beauty 28 High Street Investment 48 Shopping Centre
Digital tools: High Street 20 Luxury & Premium 29 Development and
Renovation of Stock 68
Food & Beverage 30
The Shopping
Centre of tomorrow 71
Contents 3
Introduction
Two key trends are shaping the retail sector. Firstly, sustained High Street
economic growth is driving retail sales and attracting new Demand for high street units remains strong, although there are less opportunities
for growth in prime areas following the frenetic activity in recent years. This is
international brands to Spain, and secondly the digital evident from the slightly reduced number of lettings and the expansion of some
revolution is altering traditional retail concepts, forcing all high streets. The number of out-of-town retailers opening stores in the city centre
players to either adapt to this new digital world or risk getting is also on the up. Retailers such as Kiabi, Media Markt, Leroy Merlin and IKEA are
left behind. looking to counterbalance the e-commerce surge and increase their market share.
The positive outlook is attracting many new international retailers to the Spanish
market, with 2016 seeing almost 30 new international entrants debut in the
country’s retail market.
Digital transformation of the retail sector
As the economy continues to grow, the digital revolution is gaining traction and Main shopping centre indicators
technology is affecting evermore areas of the retail sector. E-commerce is becoming The shopping centre sector registered yet another solid year in 2016. In the
an increasingly popular sales channel, accounting for €24,000 million every year portfolio of shopping centres that forms CBRE’s index, footfall climbed by
Gonzalo Senra, and growing by more than 20% in recent years. However, it still only represents 2.5% and sales increased by 1.5% y-o-y. In addition, the average shopping
National Director - 4% of total retail sales, which is considerably lower than levels seen in other centre occupancy rate rose to 93.5% in Q1 2017.
Retail CBRE Spain countries and proof that there is significant growth potential for this segment.
The improving backdrop for shopping centres can be seen in the results presented
Consumers increasingly distinguish less between online and offline channels, and by owners, with net revenue growing thanks to higher rents and occupancy rates,
their new habits are driving retailers to focus on both channels at the same time, as well as less temporary rental discounts and other non-recoverable expenses.
thereby creating a new ‘phygital’ order. Bricks and mortar stores are consumer’s
favourite shopping format, but it is increasingly difficult to draw people away from Shopping centre investment and development
the comfort of their homes. Retailers are therefore opening large flagships stores The shopping centre investment market has been firing on all cylinders
to entice people in. These are stores that are focused on the shopping experience, for the last three years, registering a record investment volume of €3,000
increasing the range of services on offer and installing new technology such as OSS, million last year, largely thanks to the Socimi Merlin Properties’ acquisition of
Locatus and Geoblink, the latter also allowing them to personalise their marketing Metrovacesa.
strategies.
Continued strong investor demand has put downward pressure on yields, which
Retailers have tightened to 4.25% for top prime products. This year is once again seeing a
Upbeat consumption levels are spurring retailers to implement ambitious expansion large number of sales, with investors showing a renewed interest in retail parks,
plans, both in terms of High Street and Shopping Centres. Sales activity in the although investment volumes are not expected to top last year’s record figure.
Fashion segment has eased off compared to previous years, however other sectors,
such as Accessories, Sportswear and Cosmetics are thriving. Food & Beverage is Shopping centre development is picking up, with new centres now increasingly
another sector that is flourishing, driven by the arrival of new concepts and aiming to become places that people visit not just to shop, but to socialise with
more professional operators, with sales up 6.2% y-o-y. friends and family.
3.6% 24,000 M€ 29 2.5% 93.5% 3,000 M€
Retail sale growth in 2016 Volume of e-commerce sales New international brand Shopping centre footfall growth Average shopping centre Shopping centre
in Spain entrants to Spain occupancy rate Q1 2017 investment 2016
4 Key features of the Retail sector in Spain | 2016-2017 | CBRE Introducción 5
01 At the beginning of 2017, yearly forecasts projected a more
modest economic growth rate, however the economy remains
strong and GDP growth forecasts have since been revised
up to 3.1%. This rate would keep Spain as one of the fastest
Economic expanding economies in the EU, where average growth stands at
around 1.9%.
backdrop
GDP GROWTH IN EUROPE AND SPAIN
Annual Growth %
5,0
4,0
3,0
2,0
In 2016, Spain’s economy 1,0
exceeded all expectations, 0
(1,0)
overcoming issues both at home (a (2,0)
caretaker government) and abroad (3,0)
(Brexit, stock market fluctuations, (4,0)
etc.), to post year-end GDP growth (5,0)
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
of 3.2%. Low interest rates, job Eurozone GDP Spanish GDP
creation and price stability were
Source: Oxford Economics.
all key to achieving this growth.
Growth in the rest of the Eurozone
In 2016, 414,000 jobs were created in Spain, a very positive
was far more muted, reaching just figure that drove the unemployment rate down to 18.6%
In 2016
414,000
1.8%. by the end of the year. Over the last three years, the
unemployment rate has dropped by six points, a very positive
result even though a large share of the employment created
was temporary. Unemployment is expected to continue falling in
2017 as jobs continue to be created, and is projected to hit circa jobs were created
18.1% by the end of the year.
in Spain
6 Key features of the Retail sector in Spain | 2016-2017 | CBRE Economic backdrop 7
RETAIL SALES IN EUROPE AND SPAIN NUMBER OF OVERSEAS TOURISTS IN SPAIN
Annual Growth % Number of tourists in millions
6,0 80
4,0
2,0 70
0
60
(2,0)
(4,0)
50
(6,0)
(8,0) 40
(10,0)
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
30
Retail sales in the Eurozone Retail Sales in Spain 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Source: Oxford Economics. Source: Frontur.
Sales are benefitting from the recovery in Consumer Confidence
levels, which following the financial crisis, and despite fluctuating
considerably in 2016, are now back up at very healthy levels. As
a result, retail sales performed very well last year, rising by
3.6% and comfortably outstripping the 3.0% registered in
2015. Although the Fashion sector suffered somewhat
in terms of sales in 2016, other retail sectors
saw significant upturns in revenue. 2017
forecasts suggest that retail sales growth
will ease slightly across the board, to
come in at between 2.0% and 2.5%.
Tourism is another factor that is driving up sales, with 2016
registering another record year in terms of the number of
tourist arrivals, with no less than 75.6 million tourists deciding to
Retail sales grew visit Spain, up 11% y-o-y. With tourist figures for the Easter holidays
3.6%
this year hitting an all-time record, all signs suggest that 2017
could be another record-breaking year.
Between 2014 and a large part of 2016, prices entered a slight
deflationary environment, however this barely had any negative
in 2016 knock-on effects thanks to the strength of the Spanish economy.
The CPI then returned to positive territory in the second half
of 2016, with inflation ending the year at 1.6% on the back of
rising energy prices. Inflation is not expected to turn negative again
this year and is forecast to move between 1% and 2%.
8 Key features of the Retail sector in Spain | 2016-2017 | CBRE Economic backdrop 9
02 In the retail sector, the transformation ranges from the
unstoppable rise of e-commerce to the increasing use
of new technology, designed to combine the best of
the physical and digital worlds to create a new order
The digital known as “phygital”. In other words, technology is
now at the service of bricks and mortar stores in order
transformation to offer customers experiences that the online channel
cannot offer.
in the Retail Shopping centres are also moving towards the
omichannel system thanks to new digital platforms
sector that allow them to develop the e-commerce business
to complement physical sales. With the creation of its
Omnichannel Sales System, CBRE is a pioneer in this
field.
This technology also allows retailers to get to know
their customers and their habits better thanks to Big
The so-called 4th Industrial Data analytics. The new tools available allow them
revolution, driven by the speed to offer customers a more personalised service and
gives them access to the key data required to make
and depth of recent technological informed decisions, such as footfall, sales, etc.
advances, is transforming all sectors
In short, retailers are facing a whole range of
and retail is no different. challenges, with the omnichannel system right at the
heart of the sector’s transformation.
10 Key features of the Retail sector in Spain | 2016-2017 | CBRE The digital transformation in the Retail sector 11
E-Commerce
E-commerce continues to surge in Spain, and is starting to form E-commerce includes many sectors and services (travel,
a key part of the retail backdrop. In 2015, e-commerce revenue theatre tickets, F&B, etc..), with the retail business only
stood at over €20,000 million, whilst forecasts for 2016 suggest accounting for a third of total revenue. This said, retail
that this figure could hit circa €24,000 million, equating to a 20% e-commerce is a rapidly growing category, with online sales
increase for the fourth consecutive year. In terms of revenue, in segments such as Fashion and Accessories already
these figures place Spain fourth in the European Union accounting for a notable 10% of its segment’s total.
ranking, ahead of Italy, but a long way from the UK, Germany
and France.
WEIGHTING OF E-COMMERCE IN RETAIL SALES IN SPAIN BY SECTOR
E-COMMERCE IN SPAIN % TOTAL SALES
Volume in € millions
30.000 30% 12%
10,3%
25.000 25% 10% 9,2%
20.000 20% 8%
15.000 15%
6%
10.000 10%
4% 3,5%
5.000 5%
2%
0 0% 0,7%
2009 2010 2011 2012 2013 2014 2015 2016
0%
E-Commerce volume. Annual var. (%) Retail Food Clothing Footwear and
Leather Goods
Source: CNMC Source: CBRE based on CNMC and INE data.
In other sectors, e-commerce is growing at a much slower
pace. For example, in sectors such as Food and Furniture
& Household Goods, online sales represent just 1% of total
sales volume given that the complex logistics involved makes
the online sales channel more difficult in these segments.
Combining all segments, e-commerce accounts for almost
4% of total retail sales in Spain, a long way behind
countries such as the USA and the UK, which lead the way in
terms of e-commerce and where circa 15% of their total sales
come from this channel.
Foodstuff is the largest retail segment (representing
almost 35% of total sales in Spain), meaning there is great
potential to explore the online channel.
12 Key features of the Retail sector in Spain | 2016-2017 | CBRE The digital transformation in the Retail sector 13
WEIGHTING OF E-COMMERCE IN RETAL
SALES BY COUNTRY
17% 14%
9%
15% 9%
3,5% 3%
• United Kingdom
• United States
• Germany
• France
• Europe
• Spain
• Italy
Source: Centre for European Retail, CBRE Spain
mazon Go - Seattle,
A
However, Food logistics present a campaign has forced the hand of USA.
challenge whether the goods are traditional retailers who now have The US giant is omnipresent. By revenue, it holds the number 10
perishable or not, and major super no choice but to improve their online spot in the world’s retail sales ranking, and is considering taking
and hypermarket operators confess to sales services. Speed of delivery is also the plunge and moving into the physical world in order to compete
losing money with the online channel. gaining importance in other segments directly with stores of its own. However, this process is no mean
Although the online sales channel and is even turning into a competitive feat and pure online players are notorious for suffering problems
helps to establish new customer loyalty, advantage in segments such as Fashion and delays when trying to make this move. It also requires a
retailers in this sector do not view it as for example. high investment; the online world is met with the harsh reality
an absolute priority, feeling happier with that in the physical world the best retail units do not tend to be
home delivery from their local stores. However, Amazon’s innovation is not available.
This has opened the door to pure online confined to the online world, and it is
players such as Ulabox, LaDespensa. also busy developing initiatives for the For these retailers, repeating the same process across
com and Delsuper, that have taken physical world. In Seattle, the city where multiple countries would be a very slow and costly
advantage of a niche in the market. the company was originally founded, it process. For precisely this reason, the most ambitious
is in the process of trialling its Amazon pure online players are looking into the possibility
However, Amazon is the company Go supermarket, where customers of buying up chains that already have stores in
that has really taken the Food buy their goods without having to operation to make it easier for them to expand in the
3.5%
online market by storm, and after go through the checkout: in-store bricks and mortar world. In fact, the online fashion
rolling out its non-perishable goods sensors recognise both the product retailer Zalando has already acquired the sportswear
line in 2015, it extended its offer to and the client and automatically retailer Kickz that owns 15 physical stores in Germany.
include fresh goods in 2016. New charge the amount to the customer’s The company Ali Baba has created strategic partnerships
urban storage facilities in Madrid and account. In Spain, it has already with several retail chains in China in order to expand its business
Barcelona provide it with the flexibility launched its Amazon Dash service, beyond the online channel and increase its offline footprint. This E-commerce represents
it needs to be able to offer its Prime a Wi-Fi connected device that allows trend clearly highlights that high-street retailers are not the only less than 4% of retail sales
Now service which guarantees delivery customers to purchase household players that must integrate omnichannel strategies into their
within two hours. Amazon’s aggressive products at the mere push of a button. business plans, so too must online players.
in Spain
14 Key features of the Retail sector in Spain | 2016-2017 | CBRE The digital transformation in the Retail sector 15
The idea that bricks and mortar stores were at risk of extinction is
In-store digitalisation now a distant memory, with it becoming ever more clear that what
customers really want is the best of both worlds; the ability to switch
High-street retailers are responding to the demands of e-commerce between the different sales channels with maximum ease. The
by improving their stores and their onmichannel processes and “connected consumer” opts for the “on” and “off” as and when
introducing digital technology in order to provide them with a they choose, thus forcing brands to ensure that both channels
competitive advantage. A survey completed by CBRE among complement each other, thereby creating a new order known as
retailers reveals how an increasing number are focusing on “phygital”. In this process, the physical store is reclaiming its core role,
technology as a way of both improving the customer experience as the channel that allows customers to see, touch and try or try on
and getting to know them better. According to the survey, 78% of goods, as well as the one that offers face-to-face customer service.
retailers promote the store on social media, 53% offer in-store Wi-
Fi and 34% are installing in-store interactive devices. Consumers naturally tend to use the internet as a complementary
channel and are carrying out an increasing number of searches
and purchases online, as well as managing an increasing number
edia Markt Digital Store -
M
of other affairs on the internet. As a result, customers optimise Avinguda Diagonal, Barcelona.
their in-store visits as much as possible, making less visits,
but increasing their dwell time.
WHICH TECHNOLOGIES ARE RETAILERS INSTALLING OR GOING
TO INSTALL SOON IN THEIR STORES? Against this backdrop, customers are now demanding enhanced
in-store experiences that make their trips worthwhile. Retailers
are responding to this demand by opening spectacular flagship
Interactive stores, which not only offer a greater range of stock, but also serve
displays as an authentic shop window for new technological and digital
services. The latest stores opened for example by Massimo Dutti
34% in Barcelona and Mango in Madrid, offer smart fitting rooms,
smart mirrors, easy checkouts and Click&Collect services, which all
improve the customer experience and the store’s interaction with
them; thus improving their omnichannel offering.
In-store Wi-Fi
An important aspect of using technology is that it allows
53% customers to be segmented, helping the business to offer a more
personalised and unique service. A clear example of this is the
new travel agency Pangea in Madrid, that has opened a macro-
store focused on providing each and every customer with a high-
Promote the store end service and an à la carte experience, offering both personal
on social networks advisors and cutting-edge digital technology.
78%
Consumers are exposed to a rapidly growing amount of digital
marketing, receiving a never-ending stream of publicity messages.
Shopper analysis Therefore, personalised marketing strategies are the best way of
catching the customer’s attention, standing out and establishing
31% greater customer loyalty. Interaction via social media is one of
the main priorities on retailers’ technology agendas. As well as
personalising messages, new technological advances such as
NFC/RFID
3D-printing and the Internet of Things will allow retailers to
19% personalise products themselves, moving towards what will be one
Beacons
of the key goals for the retail sector in the future: make the customer
9% feel that the product has been designed specifically for them.
16 Key features of the Retail sector in Spain | 2016-2017 | CBRE The digital transformation in the Retail sector 17
Digital tools: Shopping Centres
All these trends are changing how shopping centres operate, and
their management is becoming more strategic and specialist,
requiring closer collaboration between all the parties involved:
property managers, owners and retailers.
Technology is key to achieving this close collaboration, whether it
is establishing new channels of communication with customers or
digitally analysing their purchasing habits.
One of the remaining challenges is to incorporate
e-commerce and omnichannel strategies into shopping
centres. Shopping centres have been noted for their absence in the
rise in e-commerce, which has focused on retailers and products.
However, offering multiple brands in one single location creating
a strong attraction, combined with management capacity have
always been shopping centres’ fortes; and these are also great
strengths when it comes to the omnichannel system.
IN ORDER TO COMBINE THE BEST that are on sale in other marketplaces move into line with the omnichannel both in terms of sales and customer
OF THE PHYSICAL AND DIGITAL and different to the products that can system, just as retailers have had to do. communication. Franchises also benefit
WORLDS, CBRE has developed a be found at the shopping centre. As well as increasing the possibilities from the fact that OSS online sales are
platform that optimises shopping of digital analytics, the management registered directly to the individual
centres’ strengths. The Omnichannel Unlike traditional e-commerce, OSS team’s communication with stores themselves and not to the
Sales System (OSS), offers shopping strengthens the shopping centre’s customers will also change, retail brand as a whole.
centre retailers one single website for brand, placing the focus on the becoming more integrated, with a
online sales. It is a marketplace that retailers rather than the products. The clear focus on combining the different The OSS initiative is a clear example
is designed to offer consumers the app offers multiple advantages to all sales channels. of an innovative solution that responds
possibility of buying online products concerned parties, shopping centres, to society’s current-day demands.
OSS
from all the retailers present in a retailers and consumers alike. Installing OSS can also encourage Consumers require omnichannel
shopping centre and selecting the retailers that have not yet “gone digital” solutions that cover increasingly broader
delivery method that best suits them. It places shopping centres at to take the plunge. The sales of many spectrums, and systems such as OSS
the heart of the e-commerce small retailers depend on the shopping will be key to remaining competitive
Offers shopping The key objective of OSS is to fully process, just at the moment when centre’s footfall, as they create little in this new climate, where the barriers
centre retailers integrate all sales channels and online sales are starting to take off in impact on the internet given they lack a separating the on and offline worlds are
available delivery options, thereby Spain. Although part of the system is strong brand identity. becoming increasingly blurred.
one single website offering an omnichannel system that is managed by a specialist company, the
for online sales so broad, that no sales opportunities shopping centres involved will without A system such as OSS, that is driven
need be missed. To offer the broadest doubt need to change their business by the strong brand identity of the
omnichannel spectrum possible, the mentality. Their management teams will shopping centre, can create better
platform is also able to offer products also have to adjust their processes and opportunities for this type of retailer,
18 Key features of the Retail sector in Spain | 2016-2017 | CBRE The digital transformation in the Retail sector 19Digital tools: High Street
Driven by digitalisation, a growing number of companies on the
market are now supplying statistical data. This data ranges from
analysis of the existing retail supply to consumer patterns among
certain sectors of the public, allowing trends to be mapped out
in an exercise known as location intelligence in the marketing
world. A company new to this field is the Dutch consultancy firm
Locatus, which has rolled out its retail database and cartography
services in Spain via a geomapping tool. With its overseas
expansion, Locatus follows in retailers’ footsteps, moving towards a
more global model to fulfil the increasing need to analyse cities all
over the world.
The advances in Big Data have also spurred the development
and use of digital analytics systems that analyse consumer
patterns. Among the many service companies that have emerged,
Geoblink is particularly noteworthy, which benefits from BBVA as
a source of information and thereby has access to real spending
statistics. The use of Big Data is a step forward in analysing
consumer behaviour, although it is clear that it is early days for this
data analysing process and it still needs to be further refined.
The new data analysis tools are without doubt becoming
indispensable when it comes to helping retailers
ensure successful decision-making. In a
changing world, data management allows
retailers to gain a real insight into current
Whilst the shopping centre sector has been relying on the analysis High Street trends, anticipate future trends
of statistical data in order to make informed decisions for years and in turn define appropriate strategies
on end, the High Street sector has been far less pro-active in this
regard. Business decisions are still often based on the experience
and intuition of experts, with the limited statistical data available
for the Spanish High Street sector playing a little or non-existent
role in the decision-making process. The scarcity of sales data is
a good example of the High Street market’s lack of maturity
when compared to other sectors such as Shopping Centres.
The absence of asset management and the independent nature of
the retail units have always made it difficult to develop these types
Geomapping
of statistics. However, the High Street market is gradually becoming Digitalisation is driving new analytics tools,
a more professionalised sector, boasting an increasing number of
which take Geomapping and the use of Dig
international retailers operating in Spain and a growing demand
for statistical data such as footfall and sales. Managing and Data to the next level
displaying the sector’s data is also becoming a critical part
of retail advisory services, with retailers increasingly operating in
market niches.
20 Key features of the Retail sector in Spain | 2016-2017 | CBRE The digital transformation in the Retail sector 2103 Fashion
In 2016, the retail sector as a whole grew by a significant 3.6%,
explaining why retailers are expanding at such a strong pace.
Retailers However, the Fashion sector saw uneven growth in 2016. The
main fashion retailers performed well, with Inditex heading
up the ranking and registering an average growth of 6% across
all of its brands in 2016. Primark also saw a significant jump in
sales (+17%) partly thanks to the opening of its store on Gran Vía,
Madrid, whilst sales at H&M experienced more muted growth in
2016 (+2%). However, other retailers saw figures dip, with some
brands, such as C&A and Desigual, suffering losses and currently
in the process of being restructured. Fashion is one of the most
competitive areas in retail, with low-cost retailers such as Primark
putting a particular strain on the mass-market segment. If a retailer
does not sell, the consequences can be severe, as was the case for
Blanco and Caramelo, who were forced to close down after being
unable to sustain the frenetic expansion implemented during the
3.6%
economic boom years.
In 2016, once the segment’s leaders
wound down their level of expansion
activity, the year saw less high street retail sector growth
fashion retailers expanding their networks as a whole
than in 2015. Just a handful of flagship
stores were opened in 2016, Barcelona only
saw Zara (Plaza Catalunya - Barcelona),
Massimo Dutti (Passeig de Gràcia), Terranova
(Boters) open new stores in units with over 2,000
sqm of floor space. In 2017 H&M opened a new
store in Barcelona (Passeig de Gràcia) and Zara
and Mango both opened new stores in Madrid, in
Nuevos Ministerios and Serrano respectively.
In addition, as a result of signing fewer major
lettings in 2016, the weighting of fashion retailers in terms of the
number of high street space taken dropped from 52% in 2015
to 42% in 2016. The highest percentage of lettings were signed
with smaller retailers such as Guess, IKKS, Brownie, Renatta &
Go and Oysho, meaning that fashion demand is centring more
on smaller retailers rather than flagship stores. In 2016, 78% of
lettings signed were for retail units of less than 300 sqm.
Terranova - Boters, Barcelona
22 Key features of the Retail sector in Spain | 2016-2017 | CBRE Retailers 23HIGH STREET LETTINGS BY SIZE OF RETAIL UNIT Nevada also saw the Italian brand Alcott debut in Spain, opening
Nº of transactions a 3,000 sqm store as part of its ambitious expansion plan. The
Inditex group has been largely focusing on refurbishing its stores,
45 redesigning their formats and updating their overall image.
40 Lefties was one of Inditex’s best-performing brands, opening new
35
stores in Nevada and in Barcelona’s Diagonal Mar and Gloriès
shopping centres.
42%
30
25 We would also note French retailer Kiabi, which opened new stores
20 in some shopping centres such as Parquesur (Leganés), Fan Mallorca
Shopping and Diagonal Mar as part of its new plan to open in
15 inner-city locations. It will soon open its first prime high street store Weighting of fashion
10 on Passeig de Gràcia. Other traditional retail park operators are
also following this trend to open new stores in inner-city locations.
retailers in high street
5
In 2016 for example, Media Markt opened a store in the centre lettings
0 of Barcelona and is due to open a 2,500 sqm flagship store in
0-100 sqm 101-300 sqm 301-500 sqm 501-800 sqm 801-1.500 sqm >1.500 sqm
Plaza del Carmen, just 100 m from Madrid’s Gran Vía in 2017.
Leroy Merlin and IKEA have also adopted this strategy, with IKEA
recently opening its first ever urban format store under the brand
“IKEA Temporary” on Madrid’s Calle Serrano.
2014 2015 2016
Source: CBRE.
New openings
The slowdown in activity among major players has opened up
a window of opportunity for new brands to enter the market, as
although these brands are keen to enter the Spanish market, they
generally have slower decision-making processes than established
retailers. Uniqlo has already confirmed its plans to open a store
on Barcelona’s Passeig de Gracia in 2017, whilst brands such as
Topshop and Victoria Secret are also looking into the possibility
of opening flagship stores. What’s more, newcomers to the market
such as OVS, Urban Outfitters and Terranova could look to
further establish their position by opening new stores, capitalising
on the high vacancy rate in large retail units.
Major fashion chains recorded better results in their shopping
centre stores than in their high street stores. Primark, for example
opened mega-stores in two new shopping centres; Nevada (Armilla
- Granada) and Fan Mallorca Shopping (Coll d’en Rabassa).
Zara - Plaza Catalunya, Barcelona. Ikea - Serrano, Madrid.
24 Key features of the Retail sector in Spain | 2016-2017 | CBRE Retailers 25Speciality Retail and
Accessories
The reduced expansion of fashion retailers is being offset by other
segments such as Speciality Retail and Accessories, which have
been rapidly expanding. The Accessories segment was the most
active, even more so than in 2015, with several brands opening
stores in prime areas. Retailers such as Parfois, Aristocrazy,
Rimowa, Carpisa and Apodemia were the most active players.
The Sports Fashion segment continues to register robust
growth, with its sales in Spain coming in at €4,525 million
in 2016, 6.5% up on the previous year. The Sports Footwear
segment is also thriving thanks to the popularity of trainers, which
currently account for over 26% of worldwide shoe sales. Many new
international entrants such as AW Lab, Snipes, JD Sport and
Size? have taken the market by storm and are now competing
against manufacturers themselves such as Nike, Puma and Adidas.
In 2016, Size? opened a flagship store on Madrid’s Gran Vía, and
it recently opened another store in the Puerto Venecia shopping
centre. Traditional retailers such as Sprinter and Forum are also
benefitting from the sector’s growth and are both implementing
expansion strategies and modernising their store formats.
H&M - Passeig de Gràcia, Barcelona. Adidas - Gran Vía, Madrid.
26 Key features of the Retail sector in Spain | 2016-2017 | CBRE Retailers 27Cosmetics and Beauty Luxury & Premium
Another segment which is positively thriving is the Personal Care The Luxury segment is the only sector to have barely seen any
segment, especially the low-cost makeup segment where growth is expansion activity in 2016, remaining very stagnant worldwide.
in full-swing. The Spanish market is particularly attractive for these Madrid saw just one significant entrant, namely DSquared2 which
types of retailers, considering that Spaniards spend an average of took up a unit on Madrid’s Calle Ortega y Gasset on a stretch close
€139 per person/year on perfume and cosmetics, which is above to the Castellana. Although revenues in Spain’s Luxury segment
the European average (€120). In fact, Spain is ranked fourth in the have not dropped, in general the sector is taking a long time to
European Union in terms of average spend in relation to income recover from the sharp drop in the number of Russian tourists and
per capita, ahead of large economies such as the UK, France and the slight decline in the number of Chinese visitors. The outlook for
Germany. 2017 is more optimistic, with demand for prime retail units from Patrizia Pepe -
Claudio Coello, Madrid.
luxury retailers swelling.
The segment is also having to face the challenges posed by
e-commerce and omnichannel strategies. Many luxury retailers
have barely invested at all in online channels, continuing to rely on
their customers’ loyalty and focusing on protecting the exclusivity of
their brands and their pricing policies. However, this approach does
not wash with new generations who are looking for an immediate
response when they buy and want to be kept continually up-to-
date on store news and promotions via social media. Major luxury
brands are now realising that they are not immune to the threat of
e-commerce and have started to integrate new retail models into
their strategies adjust to the new consumer.
In contrast, the Premium segment is flourishing, with numerous
retailers expanding. In comparison to the Luxury segment, it offers
more affordable selective products to a younger and broader
target market and is proving to be a real hit, especially in Madrid’s
Salamanca district, where Premium retailers line its narrow streets,
particularly on Calle Claudio Coello.
Nyx - Cucurulla,
Barcelona. Millennials are particularly receptive to publicity posted on
Facebook, something which beauty product brands are well aware
of and which they use as a means to break into the market. The Demand in the
brand Nyx, which is currently implementing a very ambitious
expansion plan in Spain, serves as a prime example of how to kick-
start trends and interact with potential customers via social media.
Luxury
Other brands which are also very active include Kiehl’s (also segment is growing and letting
owned by L’Oréal), Rituals and Lush. activity is expected to pick up
in 2017
28 Key features of the Retail sector in Spain | 2016-2017 | CBRE Retailers 29However, consumers are more a backdrop where low-cost (which
Food & Beverage demanding than ever before and the triumphed during the economic crisis)
gastro-world is turning into a Leisure is no longer the only winning formula.
One sector that is beginning to pick up following the financial sector in its own right, evident from
crisis is the Food & Beverage segment. Both established and new the amount of food-related prime The “quick service” concept is rapidly
F&B operators are immersed in strong growth plans as Spaniards time TV programmes and specialised gaining popularity. These restaurants
once again begin to spend money on eating out. According to gourmet-trips for tourists. This interest offer quality fast food that can be
figures published by the National Statistics Institute (INE), Food in gourmet experiences has given rise enjoyed in a pleasant environment.
& Beverage revenue climbed by 6.2% in 2016, up from 4.5% in to extremely successful formulas such TGB and the new-look Pan’s &
2015. as Madrid’s exclusive Platea, located Company are some of the most
in a former theatre, and traditional active operators in the segment. The
food markets that have been converted American burger chain Five Guys has
RISING REVENUES IN THE SPANISH FOOD & BEVERAGE SECTOR
into gourmet markets such as the also debuted on the Spanish market,
Annual Growth %
Mercado San Miguel. This multi gastro- opening its first restaurant in Madrid on
8 space trend is extending to other the most prime stretch of Gran Vía.
Spanish cities (such as Puerta Cinegia
6
Gastronómica in Zaragoza) and The US-born “casual dining”
4 has even reached shopping centres concept is also sparking interest,
(such as the Dining Experience, which offering affordable sit-down
2
Unibail-Rodamco is rolling out in 6 of dining in an informal setting.
0 its shopping centres). Goiko Grill and Ribs are active
players in this segment, while the
(2) The arrival of more professional American chain NBA Café has
(4) operators and the development of opened its first branch in Europe
various restaurant subsectors is proof on Barcelona’s Las Ramblas.
(6)
that clients are looking for an improved Meanwhile, Wagamama
(8) level of quality and service. Consumers which specialises in Asian
new demands are giving rise to new cuisine, recently opened its first
6.2%
(10)
2009 2010 2011 2012 2013 2014 2015 2016
concepts and established brands restaurants in Madrid, operated
are renewing their image, against by Spain’s Grupo Vips.
Source: INE.
Food & Beverage
sales grew 6.2%
in 2016.
Wagamama - Calle Génova, Madrid. NBA Café - Las Ramblas, Barcelona.
30 Key features of the Retail sector in Spain | 2016-2017 | CBRE Retailers 3104 Madrid
2016 was another busy year for retailers in terms of lettings in
Madrid, although take-up did not reach the levels hit in 2014 and
High Street 2015, several retailers let units in main high street locations.
Gran Vía, Fuencarral and Serrano were the most sought-after
locations in the capital, although fewer prime lettings were signed
compared to previous years, largely due to the lack of available
units. No space exceeding 1,800 sqm was signed, after leading
retailers such as Zara and H&M took the gas off their expansion
plans. Most retailers looking to expand took space of 300
sqm and below.
DISTRIBUTION OF LETTINGS ON MADRID’S
PRIME HIGH STREETS
Ortega y Gasset
Serrano
4%
9% Gran Vía
30%
Goya
13%
Fuencarral
44%
Zara - Paseo de la Castellana, Madrid.
Source: CBRE, 2016.
32 Key features of the Retail sector in Spain | 2016-2017 | CBRE High Street 33Madrid now equals Barcelona as an streets. Calle Fuencarral is the go-to
international high street destination, hub for retailers with a young target RENTAL LEVELS ON MADRID’S PRIME HIGH STREETS
with several new international brands market, with sports fashion, trainers
debuting in the Spanish capital and cosmetics retailers experiencing 120 120 110
over recent years. In 2016, 19 strong growth in this market segment. 85
international entrants took space in It is attracting both new brands and 140 140 150
the capital, notably Five Guys, Size? established retailers that are fiercely 150 75
and DSquared2, while Barcelona competing for the available units. Calle 160 160 180 80
recorded 18, with Victoria’s Secret and Goya has become an authentic mass- 150 50
135
Terranova heading up the list. market destination, with several new 65
fashion chains replacing traditional 240 240 240 85
220
For several years Calle Fuencarral businesses. It has also seen increased 185
150 35
and Calle Goya have been interest in its central stretch, where it was 40
generating heightened interest previously weak. 300 300 270 50
250 250 65
and seen high levels of letting activity. 200
The lack of available units has driven In the Salamanca district, we would 85
rental prices up considerably on these particularly note the recent opening Preciados Gran Vía Serrano Ortega y Gasset Goya Fuencarral Princesa
Mango - Serrano, < 100 sqm 101-300 sqm 301-500 sqm 501-800 sqm 801-1.500 sqm
Madrid.
Source: CBRE.
of Mango’s 2,000 sqm flagship store at Calle Serrano 60. As a
result of the lack of available units and increased rental prices,
many retailers are turning to adjacent streets such as Calle
Hermosilla, Ayala, Jorge Juan and Claudio Coello which have
seen demand spike considerably and have significantly increased
their retail supply. Calle Claudio Coello particularly stands
out, having become incredibly popular and welcomed
a long list of international retailers from the Medium and
Premium segments.
In contrast, activity in the Luxury segment pretty much ground
to halt in 2016, with Calle Ortega y Gasset and the
luxury stretches of Calle Serrano seeing virtually no
new openings. However, the green shoots of
recovery started to emerge in the first half
of 2017, with the Italian fashion retailer
19
Pinko for example, announcing its plans
to open its first store in Madrid on Calle
Serrano. Calle Princesa, one of Madrid’s
long-standing prime high streets, had lost
significant ground over the last few years, New international
seeing very few lettings brand entrants in
However, in 2016, it bolstered its Fashion Madrid
and Accessories supply and even extended
its retail stretches. In 2016, brands such as
Inspiral, Apodemia, Top Queen and The
Body Shop took space on this waning hub.
34 Key features of the Retail sector in Spain | 2016-2017 | CBRE High Street 35Calle Orense is now a firm target on High Street rents rose in 2016, albeit to a lesser extent than in
retailers’ radars, seeing several new 2015 and the top prime high streets registered average increases
openings such as Decathlon City, Primor, of around 6%. The upward pressure on prices from demand was
which replaced Massimo Dutti after it so intense in some streets, especially along the pedestrianised
moved to a larger unit on the same street stretch of Calle Fuencarral, that rental hikes even doubled this
and Bershka, which replaced Zara. The figure in some cases.
future Azca regeneration project is expected to
improve access routes to the area, as well as Since the beginning of 2017, prime rents have once again started
6%
its connection with Calle Orense. With the to climb, and according to forecasts, over the remainder of the year
opening of its new flagship store next to they will comfortably exceed the increases registered in 2016.
El Corte Inglés in Nuevos Ministerios, uma - Fuencarral,
P
Madrid.
Zara got in ahead of the competition
High Street to secure a prime position on what
rents registered should become another of Madrid’s
key strategic retail hubs.
average increases
of around 6%
in 2016. Larger
climbs are
expected for he Body Shop -
T
2017 Princesa, Madrid.
36 Key features of the Retail sector in Spain | 2016-2017 | CBRE High Street 37Barcelona
As in Madrid, demand for high street retail units in Barcelona
remains upbeat. El Passeig de Gràcia and Portal de l’Àngel are
traditionally the most sought-after high streets, however the most
highly anticipated opening of 2016 was seen in the heart of
Barcelona’s tourist area, Plaza Catalunya, where Zara opened a
3,600 sqm flagship store. There are several buildings still due to be
converted to retail use on Plaza de Catalunya, hence it will no
longer be simply an area full of passers-by and will become
an attractive go-to hub for retailers looking to open flagship
stores.
Passeig de Gràcia is home to the most noteworthy trends, with many
market leaders opening flagship stores in landmark buildings. In
2016, Massimo Dutti opened a flagship store at number 96 in the
unit formerly occupied by Vinçons, however, where the road meets
Gran Vía de los Corts Catalans is where an unprecedented number
of fashion retailers are opening stores. In February, H&M opened
a flagship store in the Vitalicio building (at number 11), Zara is
currently renovating its megastore on the corner opposite and
Uniqlo has chosen the same spot to open its first Spanish store.
With three of the top five fashion retailers now present on this stretch
of the street, the battle is now on. What’s more, to further increase
competition, there are other projects underway very nearby that will
without doubt further establish this stretch as a go-to retail hub.
DISTRIBUTION OF LETTINGS ON BARCELONA’S
PRIME HIGH STREETS
Ramblas
5% Diagonal
18%
Rambla de
Catalunya
31%
Passeig de
Gràcia
10%
Pelai
10%
Oysho - Ramblas, Barcelona. Portal de
L’Angel
Portaferrissa
8%
18%
38 Key features of the Retail sector in Spain | 2016-2017 | CBRE High Street 39The area to the south of Plaza Hema have also opened stores in this RENTAL LEVELS ON BARCELONA’S PRIME HIGH STREETS
Catalunya also saw heightened letting area.
activity, particularly noting Terranova’s 100
opening of its first Spanish store at During the past few years, Las Ramblas
95
the end of 2016 in a 2,000 sqm has gradually established itself as a 130
building on Calle Boters, which mass-market shopping destination, with 120
helped to bolster the retail offering the opening of Zara’s new store in Plaza 170
50
to the southern-most end of Avenida Catalunya further increasing footfall on 160
70
Portal de l’Àngel where it meets Calle this hub. As Portal de l’Àngel is a very 60
55
Portaferrissa. Nyx, JD Sport and short street with reduced availability, Las 240 100 80
200 70
H&M - Passeig de Gràcia, 30
Barcelona. Ramblas has become a very attractive 90
95
40 25
150
second option thanks to its high footfall. 60 40
120
Its upper stretch marks the end the 300 110 55
90
250 65
pedestrianised retail area comprising 200 160
140 120 100
Plaza Catalunya, Portal de l’Àngel and
Portaferrissa, with both Oysho and Portal de Passeig de Pelai Portaferrissa Las Ramblas Rambla de Diagonal
Levi’s opening stores here in 2016. L’Angel Gràcia Catalunya
< 100 sqm 101-300 sqm 301-500 sqm 501-800 sqm 801-1.500 sqm
etailers have also shown strong interest
Source: CBRE.
in Avenida Diagonal. Since the streets
pavements were widened just over a
year ago, it has seen footfall spike by As in Madrid, high street rents in Barcelona edged up
Prime rents
25%, according to counts completed slightly over the course of 2016. The top prime areas saw
climbed
5%
by CBRE. These improvements have rents rise by 5%, marginally less than in Madrid. This year,
also put Diagonal on retailers’ radar, rents are once again being driven up as retailers continue to
thus renewing the street’s supply in the significantly grow their estates and show interest in the
process. Parfois, Rituals and Oysho best prime high street locations. As a result rents are
were just three of the names to open forecast to sharply rise once again on Barcelona’s in 2016 and are
new branches in 2016, with more prime high streets this year. expected to rise
expected for 2017.
sharply this year
assimo Dutti -
M
Passeig de Gràcia,
Barcelona.
40 Key features of the Retail sector in Spain | 2016-2017 | CBRE High Street 41Other cities
Thanks to rising sales figures and growing consumer Valencia Bilbao
confidence, interest in taking up high street retail units has
heightened, with retailers adopting more ambitious expansion Valencia’s prime high street area In Bilbao, Calle Gran Vía remains In contrast, the City Council’s
plans and broadening their scope to include other Spanish resembles a “T” formed by Calle the go-to prime location for major moratorium on Food & Beverage
cities. Colón, the main high street, Calle Don retailers, followed by the pedestrianised establishments kept operators in this
Juan de Austria and Calle Jorge Juan. stretch of Calle Ercilla. However, the sector on hold during 2016. The
The main hub is complemented by two lack of available units on Bilbao’s improving tourism backdrop and the rise
other areas: firstly, Paseo Ruzafa, Calle prime high streets has forced retailers of the gastro-culture among Spaniards
Ruzafa and Calle Játiva, and secondly, that are unable to wait to create new will attract Food & Beverage brands
Calle San Vicente which leads towards retail hubs. that do not operate in Bilbao, but are
Plaza de la Reina. Valencia’s prime already present in other Spanish cities. A
retail area is traditionally renowned for The most commonly selected streets more varied and diversified gastronomic
its relatively stable rents and specialist are those that lie perpendicular to offering that complements the existing
retailers. Gran Vía, between Plaza Moyúa and supply in the city and its surroundings is
Plaza Circular. The most significant required to satisfy this new demand.
The impending arrival of Primark arrivals in 2016 were Snipes on Gran
to Calle Ruzafa is expected to create Vía and New Balance, Bag and The city’s retail offering is set to
a new buzzing hub and this has Sabon NYC on Ercilla (prime areas). be transformed over the course of
already started to change retailers’ Barbour also opened its first store on 2017 and 2018. Firstly, Zara plans to
perception of Calle Colón. Retailers Calle Iparraguirre and Bobbi Brown open a new flagship store and secondly,
have traditionally sought stores on the and Jo Malone on the adjacent Calle Primark will debut in the city at Gran
odd-numbered side of the street to take Rodríguez Arias. Fashion brands Vía 1, a player which will undoubtedly
advantage of the footfall generated continue to lead this expansion, raise footfall in and around Plaza
by the various El Corte Inglés stores, followed by Accessories and Speciality Circular, which despite being a very
however, today retailers are becoming Retail such as Sports and Cosmetics. busy area, lacks a strong retail supply.
more concerned with how close they
will be to the future Primark store,
especially mass-market retailers.
In addition to these strategic
relocations, 2016 saw many retailers
reposition to flagship stores, such as
Mango and Pull & Bear on Calle
Colón. Demand from retailers
remains upbeat, whilst the decision of
some retailers to relocate has freed
up several units and allowed new
retailers to enter the market, such as
Douglas, Orange, Nyx and Lush
which have all opened stores on Calle
Colón itself. Other significant entrants
include Rituals on Calle San Vicente
and Inspiral and Urban Dressing on
Calle Juan de Austria.
Pepe Jeans - Jorge Juan, Valencia. New Balance - Ercilla, Bilbao.
42 Key features of the Retail sector in Spain | 2016-2017 | CBRE High Street 43Palma de Mallorca Zaragoza
In Palma’s high street market, demand Multiópticas group to Avenida Jaime III Zaragoza’s high street area is formed The city is firmly in the sights of brands
for retail units remained strong and Paseo del Borne. by Paseo de la Independencia, looking to expand, given its size and
throughout 2016, driven by retail Calle Alfonso and Calle Damas/ catchment area. In 2016, the city’s
sales that jumped 7.3% in 2016, the Prime rents are now trending San Ignacio de Loyola and is the high streets have welcomed retailers
highest growth registered in Spain. upwards at a more modest pace; go-to area for major national and such as Café Noir (opening its first
This said, lettings in prime areas fell by after jumping 11% in 2015, they international retailers in the city. Since store in Spain), Liu. Jo, B-Kover, Ribs,
40%, partly due to the rapid decline in edged up just 4% in 2016 with a Zara announced its plans to open a and those previously mentioned in the
available units and partly to the caution similar performances expected for flagship store in the San Ignacio de San Ignacio de Loyola area.
being exercised by retailers, who are 2017. Rental increases are largely Loyola area (where the street meets
becoming increasingly selective and confined to the most sought-after Calle Damas) in 2015, this high street We are also seeing increased retailer
now paying more attention to the effort streets and stretches, such as Calle has seen one of the highest levels of activity in nearby areas such as León
rates that they are prepared to take on San Miguel, which is the most coveted, letting activity and has regained the XIII, Coso, Cesar Augusto, San Miguel
especially the stretch between the San status that it enjoyed before the onset and Calle Cádiz/Cinco de Marzo, with
Fashion is the segment that continues Miguel church and the Plaza Mayor. of the economic crisis. Proof of this are the number of new openings rising,
to expand the most, as shown by Paseo del Borne remains the most the stores opened by Decathlon City, although the retailer profile in these
the recent IKKS, Guess and Oysho expensive high street in terms of rents, Tramas + and IKKS. The payment of areas is mostly local or national.
openings. However, we would although its retailer rotation rate is low key-money has even started to re-
particularly highlight the surge seen due to the lack of available retail units. emerge in some lettings. Despite rising activity levels, we do
in the Beauty and Optical segments. not anticipate any rental increases,
Clear examples of their success are Avenida Jaime III has regained its It is becoming increasingly difficult to a factor which may well continue
the opening of cosmetics brand mantle as the street with the highest find available retail units in the prime to both favour the rapid take-up of
Flormar’s first store in Mallorca on rotation in the city and the highest areas of Zaragoza. available supply and spur investment
Calle San Miguel and the arrival of the number of lettings involving key deals.
money; it accounted for over half
of lettings in which the existing
tenants requested compensation for
terminating their lease agreements
early.
Oysho - Paseo del Borne, Palma de Mallorca. IKKS - San Ignacio de Loyola, Zaragoza.
44 Key features of the Retail sector in Spain | 2016-2017 | CBRE High Street 45Seville Málaga
Seville’s main high street hub, comprising Calle O’Donnell, Extending the trend seen in recent years, retailer demand continues
Calle Velázquez and Calle Tetuán, is currently in great demand to rise and is centred on the top prime areas in Malaga. As a
from retailers and this has pushed up rental prices. However, result, the area comprising Calle Marqués de Larios, Plaza de
the low rate of retailer rotation in these units and their layout are la Constitución, Calle Nueva, as well as the first stretch of Calle
barriers-to-entry for new retailers to the prime area. The Avenida Granada, has become highly sought-after and this, combined with
de la Constitución is becoming an established high street hub, the end of rent-controlled leases, is increasing the rate of tenant
particularly for restaurants thanks to a town planning policy geared rotation and pushing up rents; in Calle Larios, for example, rents of
to promoting increased footfall of both shoppers and tourists. up to €230 per sqm/month have been signed.
Even so, there is a lack of retail units of over 300 sqm, a size which
The increased demand in O’Donnell, Velázquez and Tetuán, is greatly sought-after by the main brands.
combined with the consolidation of Avenida de la Constitución
for the above-mentioned reasons, have increased the number In terms of renewing the supply in the city centre, we would
of pedestrians passing through the Plaza Nueva, which in turn highlight the entry of NYX and Tous, and the relocation of Bimba
has created a large retail hub, commencing in the Plaza de la y Lola on Calle Larios, as well as the opening of Decathlon City
Encarnación. on Calle Nueva.
Meanwhile, Calle Sierpes has become a great opportunity for The structure of the centre itself is also changing, following the
retailers yet to open a store in the city. Average prices here remain completion of the works along Alameda Principal and with the
stable, and there are some properties undergoing refurbishment plans to pedestrianise other secondary streets such as Carretería-
which will offer large enough spaces to house major brands. This Alamos and Calle Victoria. These changes will further enhance the
street is the main secondary high street in the city. existing synergy between tourism and retail.
Avenida de la Constitución, Sevilla. NYX - Marqués de Larios, Málaga.
46 Key features of the Retail sector in Spain | 2016-2017 | CBRE High Street 47High Street Investment
High Street investment remains upbeat, as in recent years, with the
High demand has further exacerbated the consistent
lack of prime product, with secondary
85%
Madrid and Barcelona
total investment volume reaching €800 million in 2016. Madrid locations that offer less aggressive yields comprise 85% of total
and Barcelona are still the top two markets in Spain, accounting moving onto investors’ radars. Investor
for 85% of total investment between them. However, there is a interest is largely focused on units where
portfolio investments.
burgeoning demand among private and institutional investors in tenants have recently signed a lease, given
other Spanish cities, especially the tourist hotspots. that if the lease is signed at market rent, the
property offers a stable long-term investment.
Another popular alternative is the acquisition of
RETAIL HIGH STREET INVESTMENT
bank-owned retail units, as although they are not
Investment in Millions €
usually prime properties, they often come with attractive
1000 letting terms and conditions.
900
800 In recent years, the number of value-add acquisitions has also
spiked. Today, this is the product that can offer the highest capital
700
gains, thanks to the value uplift potential that can be achieved via
600 refurbishment, extension or change of use. Monthisa’s acquisition
500 on the Paseo de la Castellana in autumn 2016 is a prime example
400 of a company completing a value-add deal.
arclays - Plaza de Colón,
B
300 Madrid.
200
100
0
2012 2013 2014 2015 2016 2017 T1
Primark Building. Gran Vía, 22.
Source: CBRE.
In recent years, a large number of international institutional
investors have turned to the Spanish market, some investing
heavily, such as the US investor Hines, which has acquired four
prime retail units in Madrid and Barcelona in just over a year.
Investors with this profile are the main players when it
comes to flagship stores, which require €20 million plus
investments. The High Street investment market is changing in
2017, with several insurance companies breaking onto the scene
and competing for large prime properties.
However, the lion’s share of high street retail units are smaller
in size, and therefore do not generate interest among large
investment funds. As a result, the market remains dominated
by private Spanish investors and family offices, looking to
complete smaller-scale acquisitions, mostly €10 million and
below.
48 Key features of the Retail sector in Spain | 2016-2017 | CBRE High Street 49You can also read
