The businesses most affected by Covid-19 in the shopping centres managed by CBRE were fashion retailers, whose sales plummeted by 70.6%; and leisure and sports retailers. Meanwhile, food sales fell by 9.3% in March.
After six consecutive years of growth, the declaration of the State of Emergency resulted in a change in trend for the revenues of shopping centres in Spain.
In this way, during the first quarter of 2020, retail sales in shopping centres fell by 15.1% in inter-annual terms and, specifically, in March – the State of Emergency came into effect on 14 March – they decreased by 61.6% compared to the same month in 2019, according to data from the real estate consultancy CBRE.
On average, prices could fall by between 5% and 6% in 2020 in the worst of the post-crisis scenarios, according to the consultancy CBRE.
The scenario of price decreases in the market for land is highly conditioned by the duration of the recovery from the pandemic, and the depth and form of the economic crisis itself. However, they could fall by between 5% and 6%, on average, during 2020 in the worst-case scenario, according to estimates by the consultancy CBRE.
In fact, the College of Notaries has already detected that the average price per square metre of land operations in February stood at €187, which represented a decrease of 6% in interannual terms.
The consultancy CBRE predicts that the markets most exposed to domestic demand, such as the Mediterranean region, will recover sooner, whereas the Balearic Islands and the Canary Islands, which depend more on international tourism, will take longer to recover.
The recovery of the Spanish hotel market following the Covid-19 pandemic will begin next year and the pre-crisis levels could be restored during 2022, according to the report “Spanish Market Outlook Covid-19”, prepared by the real estate consultancy CBRE.
In this sense, the hotel sector could experience a strong upturn in demand in 2021, with the recovery expected to span three different phases: first, domestic demand, then short-term demand, and finally, long-term demand.
According to a survey about the effects of COVID-19, conducted by the consultancy CBRE, 62% of those consulted consider that the path towards some kind of normality will begin in the last quarter of the year.
According to a survey conducted by the consultancy CBRE with the main owners and property developers of the industrial sector about the effects of Covid-19, 62% of those consulted consider that the journey “towards some kind of normality in the sector” will begin in the last quarter of the year
Meanwhile, 23% predict that the industry will not resume its normal activity until 2021, and the remaining 15% consider that the recovery will begin in the third quarter of this year.
The consultancy firm CBRE has been responsible for the commercialisation of the building, as well as for its management and building work.
CBRE has been responsible for the commercialisation of the building, as well as for its management and building work. The property, which is located at the intersection of two iconic streets in Madrid, Velázquez and Goya, is owned by a private investment firm.
The building, formerly known for housing the Adler Hotel, spans more than 2,000 m2 (2,163 m2) and now comprises offices equipped with the latest technologies.
Velázquez 33 will host the new headquarters of a Swiss multinational, specifically, a security provider that offers secure solutions and services for identification, traceability and authentication.
Investment in the European real estate sector broke records during the first quarter of 2020, to reach €85.5 billion, up by 52%, according to data from CBRE.
Between January and March, investment in the Spanish real estate sector amounted to €3.2 billion, 54% more than during the same period a year earlier, according to data published on Tuesday by the international consultancy CBRE.
These figures are in line with the rest of the European markets, where several real estate investment records were set during the first quarter of 2020. These figures reflect the period just before the Covid-19 pandemic reached the continent. Total investment amounted to €85.5 billion euros, up by 52% compared to the figure recorded in the same period last year.
8 January 2020 – Expansión
According to CBRE, investment in the hotel real estate sector amounted to €2.5 billion in 2019, down by 49% YoY. In total, 126 hotels changed hands last year, containing 15,000 rooms, together with another 3,200 planned rooms.
Most of the transacted properties were individual assets (72%), with just 28% of the hotels forming part of portfolios, down from 65% in 2018. The main reason for the decrease is a reduction in corporate operations in 2019. Blackstone took the market by storm in 2018 when it made a takeover bid for the Socimi Hispania, which was the largest hotel owner in Spain.
By type of asset, more than half of investors (51%) invested in urban assets in 2019, resulting in a decrease in investment in the vacation sector.
Original story: Expansión (by Rocío Ruiz)
Translation/Summary: Carmel Drake
6 January 2020 – Barcelona is experiencing record sales of office buildings, reaching highs not seen since before the beginning of the financial crisis. The sales are largely driven by high levels of liquidity and low bond yields. Ten buildings worth more than one hundred million euros sold during 2019, pushing total investments for the year to €2.816 billion. That figure is 44% above the amount sold in 2018, according to a report by CBRE.
The profile of investors has recently changed as well, as larger institutional investors looking for stable, long-term returns have slowly replaced more opportunistic buyers. Furthermore, the political turmoil in Catalonia also seems to have failed to scare off most investors.
Barcelona está experimentando ventas récord de edificios de oficinas, alcanzando máximos no vistos desde antes del comienzo de la crisis financiera. Las ventas están impulsadas en gran medida por los altos niveles de liquidez y los bajos rendimientos de los bonos. Se vendieron diez edificios por valor de más de cien millones de euros durante 2019, lo que empujó las inversiones totales para el año a 2.816 millones de euros. Esa cifra es un 44% superior a la cantidad vendida en 2018, según un informe de CBRE.
El perfil de los inversores también ha cambiado recientemente, ya que los inversores institucionales más grandes que buscan retornos estables a largo plazo han reemplazado lentamente a los compradores más oportunistas. Además, la agitación política en Cataluña también parece no haber asustado a la mayoría de los inversores.
Original Story: Expansión – Marisa Anglés
Photo: Elena Ramón/EXPANSION
Translation/Summary: Richard D. Turner
18 December 2019 – Investments in 2019 in shopping centres totalled €1.018 billion in the year to September, the lowest level since 2013. The volume of acquisitions in the same period was just 35% of the level in 2018, when it reached €2.9 billion. Analysts expect that total acquisitions for the year will reach between 1.500 and 2 billion euros, according to a report by CBRE.
The fall in investment in the sector is in large part due to the untrammelled growth in e-commerce even as sales in shopping centres remain robust. The revenues generated by e-commerce in Spain increased by 22.2% year-on-year in the first quarter of 2019, reaching €10.969 billion and an 8% market share.
Original Story: Eje Prime
Adaptation/Translation: Richard D. K. Turner
14 November 2019 –In the first nine months of the year, firms in Aragon have invested 128 million euros, an increase of 400% compared to all of 2018. Investments in October and November have so far added another 45 million euros to the tally. The figures have established Zaragoza as a major logistics pole after Madrid and Barcelona, accounting for 10% of the investment in Spain as a whole.
A study prepared by CBRE notes that the increase is largely tied to two major transactions in the Plaza logistics centre, involving a total of 145,000 square meters. The deals have typically offered returns of between 5% and 6%.
Original Story: Heraldo – Chus García
Adaptation/Translation: Richard D. K. Turner