17 August 2016 – Expansión
The recovery of the Spanish economy is causing demand for retail premises on the main streets of Madrid and Barcelona to increase, according to the latest quarterly Spain Country Snapshots report published yesterday by the advisor Cushman & Wakefield.
The real estate services company indicates that, taking into account the lack of available space in the prime areas of both cities, it is noteworthy that tenants are willing to pay higher rents in order to retain good locations.
The report also states that whilst rental prices have stabilised in the retail sector in general, they have increased by 1.9% in the prime areas of Madrid over the last year.
In addition, the report forecasts the opening of approximately 340,000 sqm of space dedicated to retail during the second half of the year across Spain. The new space will mainly be concentrated in three new shopping centres.
Meanwhile, in the logistics market, Barcelona has reported some “outstanding” figures in terms of the leasing of space thanks, primarily, to the long-term project involving the implementation of Amazon’s logistics plant in Prat de Llobregat.
With this space, which measures 60,000 sqm, the city saw 161,000 sqm of space leased during the second quarter of 2016. The figure is similar to that reported in the same period in 2015 but contrasts with the 34,000 sqm of space leased in Madrid, according to data from the agency.
Cushman & Wakefield said that the forecast growth of the economy will have a positive impact on occupancy rates over the coming months.
In addition, it expects several operations to be signed before year end, after they were delayed from Q2.
Original story: Expansión
Translation: Carmel Drake