Catella Advises Sale Of 2 Retail Premises In Burgos & Cádiz

28 July 2016 – Press Release

The international real estate consultancy Catella has advised a Spanish investment vehicle on the sale of two retail premises, located in Burgos and Cádiz, and leased to Massimo Dutti, Lefties and Desigual.

The premises in Burgos are located on Calle Vitoria, 17, but are also accessible from Calle de la Puebla, 24-26. The asset is located on the best shopping street in the city, home to high profile tenants such as Zara and El Corte Inglés. It has a total surface area of 1,929 sqm, distributed over the ground floor, mezzanine level and basement. And it is leased to the Inditex Group for use by its commercial brands Massimo Dutti and Lefties.

The premises in Cádiz are located on Calle Columela, 23 (pictured above), the main shopping street in the city, alongside brands such as Mango, Zara and Massimo Dutti. The property has a total surface area of 225 sqm distributed over the ground and first floor. It is leased to the fashion chain Desigual, which is going to introduce its new concept soon.

According to Pablo Carvajal, Director of Capital Markets at Catella, “given the absence of products with attractive returns in the prime markets of Madrid and Barcelona, investors are now showing more interest in the best shopping streets in other cities, where they are finding high yields and first-rate tenants”.

About Catella

Catella is a listed international real estate consultancy and a leader in the Europen market. Catella adds value by combining its extensive knowledge of local markets with its own investment bank approach and its great capacity to generate investment opportunities.

Original story: Press Release

Translation: Carmel Drake

Retail Outlets On Secondary Streets Are Getting More Expensive

1 April 2016 – Expansión

Secondary commercial streets in Madrid and Barcelona are increasing in value and becoming an alternative to the traditional main streets, which often have low rates of availability and prohibitively expensive rents.

According to a study by Cushman & Wakefield, rather than opening stores in smaller cities, major brands prefer to expand their businesses into secondary streets in the main cities such as Madrid and Barcelona. According to the consultancy firm, in 2016, rental prices will increase by the most in these secondary streets, where prices have been stable and in some cases, have even decreased, in recent years.

The best example of this trend has been observed on Avenida Diagonal in Barcelona, which after a major regeneration has widened the size of its pavements, and so now represents a viable alternative to the main streets such as Paseo de Gràcia and Rambla Catalunya. In the renewed section of this shopping street, rents rose by 33% in 2015 to amount to an average of €55/m2/month.

La Diagonal thereby ranks in third place on the list of shopping streets in Europe where prices have increased the most, behind Via Montenapoleone, in Milán, (41.2%) and Via Condotti, in Roma, (37.5%).

The study also reveals a recovery in the rents of retail premises in other secondary cities in Spain, although in this case, for the time being, those increases have only been seen in the prime shopping streets. The greatest increases have been recorded in those cities that benefit from tourist with high purchasing power, such as Palma de Mallorca, Puerto Banús, Sevilla and Valencia.

Cushman & Wakefield includes retail premises from the main cities in Spain amongst the main focuses for European investment, alongside Germany, Sweden and Portugal.

Original story: Expansión (by M. Anglés)

Translation: Carmel Drake