16 April 2015 – Expansión
The sports equipment company is going to lease the building located at number 6 on the Madrid street, which has a surface area of 2,000 square metres.
Changes are afoot on Spain’s most sought after shopping street. In a few weeks time, the building located at number six Calle Preciados in Madrid will house a new tenant: the American company Foot Locker. The firm, which specialises in sports equipment will replace H&M, which vacated the property at the end of March to open its flagship store in Spain.
Foot Locker – which until now leased a smaller property at number 17 (on the same street) – will incorporate its signature brand the “House of Hoops” into its new premises in Preciados; the brand was created by the American company in conjunction with the sports brand Nike. The decision to open a flagship store, which will include this new concept, comes after Foot Locker has been testing its new brand, which specialises in basketball-related products, in a pop-up store in other premises on Gran Vía, 36, just a stone’s throw from Preciados.
The building, which is owned by a Spanish family office, has a surface area of 1,960 square metres, distributed over six floors. CBRE advised on the transaction.
The move represents the largest rental transaction involving retail premises on the Spanish high street in 2015. There have not been any major changes of tenants on Preciados for almost two years; the Madrid street competes with Portal del Ángel in Barcelona as the most expensive shopping street in Spain.
“It is a highly sought-after retail area that is very popular with large brands, and so it is rare for property to become available”, says the consultancy firm Ascana.
Last year, only four stores had a change of tenants and only one of those affected premises larger than 100 square metres. Specifically, a store measuring 110 square metres, which is now leased by the make-up firm Mac, after Bijou Brigitte vacated the property. Numerous offers are now expected for the premises at number 17, which Foot Locker has left empty.
This scarce supply has meant that rental prices on Preciados have not been hit by the decreases experienced on properties in the rest of the Spanish market. There, rental prices reach €248/month per square metre for the smallest premises (those measuring between 100m2 and 200m2), according to real estate sources.
Rental prices in the larger stores, such as the one leased by Foot Locker, are lower, amounting to around €100 per square metre per month.
Original story: Expansión (by Rocío Ruiz)
Translation: Carmel Drake