06 July, La Nazione
The rent for a small shop of 30 Sq m in one of the most touristic areas can reach 15 thousand euro a month. Such prices are dictated by the market, by the global demand, and by the shopping craves of millions of people every year. Considered these prices, it’s no surprise why the traditional shops have disappeared from Florence old town.
Investing in commercial properties, which are the drivers of the market, is very interesting for the investment funds and companies, both national and international. Why? The answer is simple: the shops in the city’s golden triangle are the safest investment, safer than residential and even than financial investments. Moreover, shops provide steady yearly gross returns, ranging between 5% and 7%, according to Tecnocasa. Investors are hunting for the best locations. Only a few commercial funds are selling since they hold such precious assets. Even the smallest space put on the market gets sold immediately, and bidding higher prices is not uncommon.
“There is a huge demand from companies from all over the world: a commercial fund with a regular lease contract is the best investment concerning returns, and it’s a good protection from the economic crisis – explains Tommaso Brignani, Tecnocasa consultant -. A shop in Florence is the best way to diversify an investment portfolio”.
Hence, shops grant the best returns. Luckily prices have decreased after the block of new restaurants and grocery shops with the Unesco regulation, as stressed by the City Councillor for the economic development Cecilia Del Re. The prices reported by Tecnocasa refer to the second part of 2017, but they’re still valid for the first six months of 2018, although the official figures will be disclosed only in September.
Who wants to invest in a shop in the central streets between Piazza Duomo and Piazza della Signoria will have to be ready to pay a considerable amount of money: 30 thousand euro/Sq m which for 100 Sq m become 3 million euro, providing an income comprised between 5 and 7% thanks to the rents that can reach 4,500 euro/Sq m a year. Hence, renting those 100 Sq m can provide 450 thousand euro per year, amortising the purchasing cost in little more than four years. Buying a commercial property in Via Tornabuoni costs approximately 25 thousand euro. One only needs the necessary funds or good guarantees to get a mortgage. Not an easy task.
The prices provided refer to the very centre of the city, but rents range from 2,500 to 4,500 euro/Sq m also in Via Roma, Via Strozzi, Por Santa Maria. Shops are less pricy in Via del Corso, Via della Vigna Nuova, Via Cerretani, Via degli Speziali and Via dei Pecori (between 1,000 and 4,000 euro/Sq m a year).
In the Santa Croce area, as well as in Oltrano and the area around the station, rent prices are lower, even though a 100 Sq m shop can cost up to 4,000 euro a month.
Source: La Nazione
Translator: Cristina Ambrosi