Tag: consumers

C&W: New Retail Park Openings in 2018 Set to Exceed Those Registered in 2017 by Five-Fold

7 June 2018 – Eje Prime

Out-of-town retail parks are seducing the sector. Planned openings of retail parks in Spain this year span a surface area of 180,000 m2, which represents an almost five-fold increase compared to the 38,000 m2 registered in 2017, according to data analysed by the real estate consultancy firm Cushman&Wakefield. Specifically, the investment volume over the last 12 months in this segment amounted to €650 million, with a prime yield of 5%.

During this period, the Vidanova Parc project, in Sagunto (Community of Madrid) is the largest planned opening for the year with a gross leasable area of 45,000 m2, followed by the Torrevillage retail park (Zaragoza), with 35,000 m2 and Jaén Plaza (Jaén), with 29,000 m2. In addition, a further seven retail parks, with a combined GLA of more than 10,000 m2 are in the pipeline.

The consultancy firm has identified an increase in the demand for secondary retail parks in light of the shortage of available prime locations, greater activity in the home and decoration sectors and the consolidation of omnichannel sales

In this way, the firm highlights traditional operators such as Leroy Merlin, Ikea, Media Markt and Maison du Monde, which have expanded their presence towards the centre of cities in spaces measuring between 1,500 m2 and 4,000 m2, in search of more urban demand, with new ways of consumption and a lower dependence on cars.

On the other hand, rents remain stable in both prime and secondary retail parks. Thus, in Madrid, they amount to €21.50/m2/month and in Barcelona, they cost €18/m2/month for prime parks.

Original story: Eje Prime 

Translation: Carmel Drake

Merlin Resurrects The ‘Opción Shopping Centre’ In Alcorcón

5 October 2017 – Expansión

A beach area, a dive centre with a 15-metre deep pool, a rockodrome, and even a “mini-city for cars”. That is the innovative commercial proposal with which the Socimi Merlin Properties wants to recover the former Opción shopping centre.

Located in the Madrilenian town of Alcorcón, this establishment was one of 18 shopping centres that the real estate company acquired when it merged with Metrovacesa last year. Inaugurated in 2002, Opción was one of the shopping centres that fell victim to the economic and real estate crisis, which caused it to close its doors in 2009. Since then, Metrovacesa has considered reopening the property several times, but in the end, its new owner is going to finally re-launch the extinct centre.

Merlin’s project, known as X-Madrid, will include a different retail offer to the version typically provided by Spanish shopping centres. Spread over three floors, the ground floor will include several spaces dedicated to playing outdoor sports, such as beach volleyball and parkour (the sport of traversing environmental obstacles by running, climbing, or leaping rapidly and efficiently), a skateboard circuit, a rockodrome and a CrossFit centre.

In addition, X-Madrid will be home to Madrid’s first dive centre, with a 15-metre deep pool, which is deep enough to certify the most varied of licences, whereby avoiding the need for would-be participants to travel to the coast. In addition to the sports area, the ground floor will include a space dedicated to the world of cars, motorbikes and bicycles, as well as an ecological supermarket.

At street-level, the complex’s directors plan to open a fashion and restaurant area, including the now famous food trucks, an artificial beach and a large square (The Show Place), which will host events.

On the top floor, they are going to open a technological area, a chill out space and a cinema, as well as an area to practice extreme sports. By way of a nod to the original project, X-Madrid will also contain an area known as The Antimall, which will house a selection of tattoo shops, vintage clothing stores, as well as collectors’ items, design pieces and other items of interest.

“Nowadays, we need spaces focused on current consumers, who are looking for more technological, urban and ecological shopping and leisure experiences. X-Madrid has arisen with them in mind, and from the desire to offer something different and daring”, explains Luis Lázaro, Director of Shopping Centres at Merlin Properties. In total, the Socimi, led by Banco Santander, will invest €30 million in the project, which will include the comprehensive renovation of the building to create a retail space spanning more than 39,000 m2 of shopping area, as well as 2,100 parking spaces.

The remodelling work will begin shortly, with 70% of the retail space already reserved; the centre is expected to open in time for Christmas 2018.

With the X-Madrid project, Opción will be put on the list of centres that have been restored following their closure during the crisis, as happened with Avenida M-40 (Madrid), which has now been converted into a shopping outlet by the Venezuelan group Sambil.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake

BNP: Inv’t In Logistics Assets Reached €662M In 2015

8 June 2016 – Mis Naves

According to the real estate consultancy firm, BNP Paribas, “2015 was an exceptional year” for the logistics sector in Spain, with total investment amounting to €662 million, whereby exceeding the figure recorded in the previous year to register the highest investment volume in the last eleven years.

The data available for 2016, corresponding to the first quarter, confirms this rising trend, with total investment exceeding €320 million between January and March 2016 – this figure essentially relates to three large portfolios: Metrovacesa, Zaphir and Prologis.

For the analysts at BNP Paribas Real Estate, the good performance of consumption and industrial output, which began three years ago, has continued to boost the logistics market in 2015 and so far in 2016. Moreover, the shortage of high quality products has led to a slight increase in income and above all, to a stabilisation of prices. Thanks to the availability of land, new developments may go on the market at these rental prices. For this reason, the consultancy considers that 2016 offers good opportunities for buying and selling logistics assets.

It is worth highlighting two key milestones that are shaping the evolution of the logistics real estate sector and boosting the strong outlook for this sector.

On the one hand, 2014 and 2015 were the years when the highest ever investments were made in logistics warehouses. More than 50% of the high quality logistics warehouses changed hands during that period. The market saw a generational change in owners, with the disappearance of some and the appearance of others. The latter group includes international investors, which have been positioning themselves in the market, including several specialists, such as Prologis, which have strengthened their positioning; and the Socimis, which have secured capital overseas and invested it in this segment to create significant portfolios of logistics warehouses. During the first quarter of 2016, the main Socimis and funds interested in logistics assets invested around €320 million.

On the other hand, consumer habits have changed with the crisis, which has led to a very significant increase in the volume of purchases made online, to the detriment of in-store shopping. In this vein, e-commerce is growing at an average rate of 20% p.a.. To the extent that the volume of purchases made online increases, so too does demand for logistics spaces designed to provide support for these types of businesses. In 2015, around 17,000 sqm of logistics space was leased for e-commerce use. Even so, in Spain, online shopping accounts for just 3% of overall consumption, which reflects the potential for growth in the country, above all if we compare it with other markets such as Germany and the UK, where e-commerce accounts for 10% and 13.5% of all shopping, respectively. (…).

During 2016, consumption is expected to continue to grow with the same energy, along with the leasing of logistics space. Income will continue to increase and yields will continue to decrease due to the shortage of high quality logistics products. The e-commerce business will grow and so too will demand for cross-docking and XXL warehouses. The main Socimis and funds will continue to expand their portfolios with logistics assets. (…).

Original story: Mis Naves

Translation: Carmel Drake