BILBAO Retail High Street - RESEARCH & INSIGHT SPAIN - Cushman & Wakefield
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RESEARCH & INSIGHT SPAIN
February 2020
BILBAO
BILBAO
Retail
RetailHigh
HighStreet
Street
MARKETS H O T BILBAO 2
February 2020
EXECUTIVE SUMMARY
RETAIL IN BILBAO
It terms of its economy and The figures for tourism show The arrival of the new
employment, Bilbao is one strong performance in recent high-speed rail line will New relocations by major chains and
of the most dynamic cities years have a positive impact on openings by renowned brands have
in Spain retail in the city seen Bilbao undergo a renaissance
in recent years, not only in terms of
its prime areas but also on other
retail thoroughfares.
Vacancies are scarce on the main With more than 17,000 visitors on a typical
retail thoroughfares (2% on Gran Vía) shopping day, the street Gran Vía boasts The street Calle Gran Vía has seen
a transformation of its retail mix
the highest footfall since 2018 and brands have been
repositioning themselves at different
points along this thoroughfare.
Reference prime rent has hit The investment market for retail Meanwhile, some areas that were
a 10-year peak (€140/sq premises is liquid and there is investor until recently considered “cold” have
seen an upturn with the arrival of
m/month) appetite in terms of both national and new operators that will increase
international buyers footfall in the coming years.
BILBAO 3
Bershka Gran Vía, 11
Stradivarius Gran Vía, 18
Nespresso Gran Vía, 15
“Leader in Retail Scalpers Gran Vía, 44
Transformation” Rituals Gran Vía, 63
New market entries in Courir Gran Vía, 29
Bilbao in recnt years BBVA Ercilla, 33
(2018-2019)
Vorwerk Plaza Circular, 3
Ba&sh Rodríguez Arias, 4
Mercadona Rodríguez Arias, 17
Five Guys Plaza Circular, 5
Basic Fit Rodríguez Arias, 56
MARKETS H O T BILBAO 4
February 2020
ECONOMIC CLIMATE
The city of Bilbao is attracting an ever greater number of tourists, with
visitor numbers growing by almost 60% over the past 10 years.
Although visits to the Basque capital by Spanish residents Tourist arrivals - Bilbao
predominate, the figures for overseas tourists have doubled over the
past decade. Residents in Spain Residents abroad
With this momentum and the current strength of Spain as a world- 1.000.000
class destination, it is to be anticipated that tourist numbers will only 934.248
increase.
800.000
One of the projects that will help to energise the city, particularly in
retail and restaurant terms, will be toe arrival of high-speed rail (AVE), 652.978
600.000
the opening of which is expected for 2023. The intermodal transport
hub will exit onto the square of Plaza Circular and connect the AVE,
metro, tram system and buses. 400.000
This will connect the capital of the Basque country with the rest of
200.000
Europe the first time, whilst also enabling direct connection to other
regions on the Spanish mainland.
0
03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19
The economic impact from new influxes of people into the station
area will strengthen the city centre, the main retail thoroughfares
Source: National Statistics Institute (INE)
and adjacent streets.
MARKETS H O T BILBAO 5
February 2020
Nº premises by sector of activity
Gran Vía (stretch from Plaza Circular – Plaza Moyúa)
GRAN VÍA LÓPEZ DE HARO 30
20
The vacancy rate on the street Calle Gran Vía
López de Haro is below 2%. 10
Bilbao has a number of retail thoroughfares, with Gran Vía López
de Haro as the epicentre for retail: 0
Fashion Services F&B Health & Beauty Food
• There are 54 premises between Plaza Circular and Plaza Moyúa
• The leading sector is fashion, with some 51% of total retail
• This is followed by services, with some 33% of the total Breakdown of retail premises by size
Gran Vía (stretch from Plaza Circular – Plaza Moyúa)
• Premises of 300-500 sq m predominate, with a supply share of
By number By floorspace
24%
• Premises exceeding 2,000 sq m represent some 22%. This
format is highly sought-after due to the fact that these
premises are very scarce on the prime retail thoroughfares of
other cities
In the main, these premises are assigned to banks and flagship
stores. Examples of this are Samsung, which occupies the ground
floor of the Corte Inglés department store and the Zara macro store
which occupies 4,230 sq m in the former BBK head office.
One of the latest openings corresponds to Thermomix (Vorwerk),
which opened its first direct sales store in Spain and has chosen
Bilbao as the destination, more specifically on the Plaza Circular.
Nespresso has also arrived at number 15 on the street Calle Gran
Vía, in an area dominated by fashion brands.
MARKETS H O T BILBAO 6
February 2020
Thanks to Zara and Primark, Bilbao finds itself in the retail ‘Champions League’
The retail thoroughfare of the Gran The opening of the new 4,230 sq m
Vía has recently undergone a Zara flagship store at number 23 on
transformation, mainly thanks to the Gran Vía (mid-May 2018) entailed
Inditex. In 2018, the textile giant the closure of its three previous
brought its new integrated business stores, making it the single point of
model (begun in 2012) to Bilbao, sale for this brand in the city.
consisting of the integration of both its
online and bricks and mortar stores
under the same roof. The integrated This led to the reorganisation of the
warehouse and online collection point Inditex brands: Stradivarius and
are accompanied by an online order Bershka held onto their premises on
preparation point. the Gran Vía, the former at number 11 Footfall map of Calle Gran Vía
and the latter at 16-18, whereas Zara
Home established itself in the
This integration requires more space premises at the junction of the streets
and the merger of smaller Rodríguez Arias and El Cano.
premises.
Following this recent transformation of the area, it is likely over
the medium term that there will be movement driven by
operators wishing to reposition themselves due to the new
influxes anticipated with the arrival of the AVE. Footfall
High Medium Low
Source: Cushman & Wakefield with data from Locatus
MARKETS H O T BILBAO 7
February 2020
Types of Operators on
Gran Vía López de Haro
Primark has also come to the fore with a lease for the
forthcoming opening of more than 9,600 sq m in
The brands are
the former financial head office of BBVA in Gran Vía
69%
1, still undergoing refurbishment.
Other operators have chosen to be present in this NATIONAL
area and join brands already established, such as
31%
Tous and Bimba y Lola. Among the most recent deals
struck in 2019 was the arrival of Courir at no.29, Gran
Vía, with a premises of 235 sq m that represents its
first establishment in the city, as well as that of the
French fashion label Ba&Sh, occupying a 140 sq m INTERNATIONAL
store.
The Gran Vía cannot boast a significant offering of
restaurants, the fashion sector commanding this The retail thoroughfare of the Gran Vía
street. Hostelry has however taken hold of other boasts footfall of 17,000 visitors on a
thoroughfares within the city, such as the historic typical shopping day. The highest
centre. Five Guys has nevertheless committed to the footfall is recorded within the middle
retail area with the opening of its first burger stretch of the street, where retailers
restaurant close to Primark on the Plaza Circular. such as Zara, Tous, Bimba y Lola enjoy
footfalls that reach 28,000.
MARKETS H O T BILBAO 8
February 2020
OTHER RETAIL THOROUGHFARES
All of these core areas strengthen The Zara macro store additionally has
the retail area of Calle Gran Vía two entrances, driving the flow of people
between Calle Gran Vía - the main
entrance for the establishment, and the
rear of the store where the secondary
entrance is located.
These roads and adjacent streets
diversify the retail offering and serve a This part, at the junction of the streets
different type of shopper, thanks to the Rodríguez Arias, Astarloa, Licenciado
Other retail high streets have also grown in
great fashion and service mix and the Poza and Bertendona, expects to be
prominence, the thoroughfares of Ercilla, El
array of both premium brands and energised by the flow of people that will
Cano and Rodríguez Arias being particularly
smaller, traditional retailers. frequent this area.
noteworthy. Included among the most recent
deals struck in this area are the opening of
Mercadona at no.17, Rodríguez Arias in the
former Bershka premises, the opening of the
first Beatriz Furest store in Bilbao at no.2, Number of premises by sector of activity
Rodríguez Arias and the recent signature by the
Basic Fit gymnasium chain on a premises
exceeding 1,000 sq m at nos.56-58, Rodríguez
Arias. 35 Calle Ercilla Calle Rodríguez Arias Calle Máximo Agurirre
30
25
At no.24 on the street Calle Ercilla 24, BBVA
has opened the largest client banking centre 20
in Spain and Pompeii has set up shop at no.29 15
on the same street. 10
5
0
Fashion Services Health & Beauty F&B HomeMARKETS H O T BILBAO 9
February 2020
PRIMARK PLAZA CIRCULAR
With 47 stores, Spain occupies second place in terms of
the number of premises, behind only the UK
Spain is set to be an engine of growth for Primark in 2020. The clothing chain
anticipates 2020 sales growth of around 5% in Europe, with Spain being
amongst its main sources of growth.
The opening of the Primark premises on the Plaza Circular square in Bilbao
will be key to this expansion. It will be the second largest store for the firm in
Spain, behind only the 12,000 sq m that it occupies on Madrid’s Gran Vía, and
exceeding that of the recently opened store on the square of Plaza Cataluña in
Barcelona.
This store will represent a new focal point for retail development in Bilbao due,
among other factors, to the fact that it:
• Occupies 5 floors of the emblematic BBVA building
• Is located at the start of the Calle Gran Vía
• Is on the same roundabout as the entrance to the AVE high-speed railway
station
• Consists of a macro store at a national level
In short, this new site for the fashion giant will have a significant impact on the
retail set up in Bilbao, paving the way for a new wave of retailers and amenities
that will improve the retail offering.
Image source: Associated British Foods plc. - Annual Results Announcement September 2019MARKETS H O T BILBAO 10
February 2020
RENTS INVESTOR ACTIVITY
Both national and international investors
The Gran Vía has the highest high street rent in Bilbao Bilbao is one of Spain’s
leading destinations for
compete with local investors, the latter often
being more aggressive in their acquisition bids.
Although the prime rent stood at around €140/sq m/month in 2019, investment in high street
representing a decrease on the previous year, this figure remains retail premises, as are
above the level for the 10 years preceding 2018. other cities such as The prime yield for the stretch from Plaza
Valencia and Sevilla where Circular to Plaza Moyúa continues to contract,
shoppers focus their closing 2019 at an all-time low of some 4%.
Given that certain deals have been struck at rents above these This translates into a fall of 25% in comparison
levels, this price may be even higher depending on the section of attention on prime areas.
with 2018.
the street on which the retail premises is located.
Other retail thoroughfares
Comparative trend in rents on Calle Gran Vía
(€/sq m/month) Barcelona - Portal de Most recent investment deals
L'Angel
300 285
Madrid - Preciados Floor area Price
Address Buyer
275 (sq m) (€m)
250
Málaga - Marqués de
Larios Gran Vía, 1 Talus 21,000 85
200
170
150 Bilbao - Gran Vía 140 Tander
Gran Vía, 6 260 7.5
Inversiones
Sevilla - Tetuán 125
100 Corpfin
Palma de Mallorca - Gran Vía, 20 Capital Real 5,520 65
50 Jaime III Estate
115
Gran Vía, 37 Vivisa 550 13
0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019BILBAO 11
A STROLL THROUGH BILBAO’S STREETS
A journey replete with success and major brands
Stradivarius Celio Asics Primark
300 sq m 345 sq m 631 sq m 9,600 sq m
From
2013 Gran Via 37 Gran Via 27 Gregorio de 2 Gran Via 1,3,5
la Revilla
Courir Ba&Sh Lush Sunglass Hut Basic Fit
234 sq m 140 sq m 163 sq m 235 sq m 1,040 sq m
To now
Gran Via 29 Rodríguez 6 Gran Via 6 Gran Via 15 Rodríguez 56
Arias AriasRESEARCH & INSIGHT SPAIN
February 2020
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For further information on C&W Research & Insight, contact:
Filipe Do Amaral Oliveira Beatriz López Cid
Senior Consultant, Retail Agency Spain Associate, Retail Capital Market Spain
Filipe.oliveira@cushwake.com Beatriz.lopezcid@eur.cushwake.com
Daniel Caprarin María Jesús Álvarez Coello
Senior Research Analyst Research Analyst
daniel.caprarin@cushwake.com mariajesus.alvarezcoello@cushwake.com
Media contact
Ramiro J. Rodríguez, PhD Jenny Pizarro
Associate Director Partner
Head of Research & Insight - Spain Head of Marketing & Communications
ramiro.rodriguez@cushwake.com jenny.pizarro@cushwake.com
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