globe retail outlook data

 

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Spain

The main economic indicators for the retail sector recorded positive figures in 2016 and were even above those predicted at the start of the year. . Private spending grew by 3.3%, the unemployment rate fell from 22.1% to 18.6%, tourism posted a new international visitor record and the Consumer Confidence Index, after stumbling at the start of the year, rose back up to high figures again.

The retail market has benefitted from this favourable economic climate, notably increasing its sales level (3.6%), and retail expansion has increased markedly, with the exception of the luxury sector, which continues to be very slow globally. In all other sectors, players are carrying through with ambitious expansion plans, and those sectors which were most active in 2016, F&B, accessories, sports and cosmetics, are all expected to be the leading retail segments, in both shopping centres, as well as on the high street. 

Fashion was the one disappointment in sales last year, registering only a negligible rise, and big retailers are expected to grow at a slower rate than in previous years.   Retailers such as Mango, Inditex and H&M seized the best opportunities, occupying buildings in prime locations to create flagship stores, and now have less need to expand. In fact, by increasing the floorspace and the retail impact of their flagship units, their less successful stores run the risk of being closed or occupied by other company brands. 

The slowdown in activity by the big players opens the door for new brands to enter the Spanish high street. Uniqlo has already confirmed its plans to open a store on Barcelona’s Passeig de Gracia in 2017, whilst brands such as Topshop and Victoria Secret may also decide to open flagship stores.  What's more, brands which are newcomers to the market such as OVS, Urban Outfitters and Terranova could look to  consolidate their position by opening new stores, capitalising on the high vacancy rate in large retail units.

Furthermore, we believe that retailers will broaden their horizon in 2017, and instead of just focusing on the Madrid and Barcelona high streets, they will increasingly consider opportunities on high streets in other cities. Hence, in our view Malaga, Seville, Bilbao, Valencia, Zaragoza, Palma de Mallorca, etc. will all see an increased number of both rental and investment deals taking place.     

Retail investment has been extremely healthy for the third year running, registering a record volume over the last three years. In 2016 a record €3,800 million was invested, a higher than expected figure thanks to the acquisition of Metrovacesa by Merlin Properties, which brought a large portfolio of shopping centres with it. Even setting aside this deal, 2016 was a very active year, thanks to favourable economic and property cycles, the amount of capital available and improved access to financing.   

The shopping centre investment market is expected to remain largely unchanged, with the pipeline for the H1 2017 remaining equally as strong as in H2 2016, with many assets either in the sales marketing or sales phases. An investment volume of over €1,100 million is forecast for H1 2017.  Although it is harder to make assumptions for the second half of the year, the shopping centre sector could reach a total investment volume of slightly below €2,000 million in 2017.    

Retail high street investment activity is also upbeat, thanks partly to demand from private investors and family offices and, partly to institutional funds which are becoming increasingly interested in larger-sized properties. However, the high street sector continues to lack product and demand continues to outstrip supply.    

We expect the high street investment market to remain a hive of activity in 2017, with renovations and/or extensions likely to create some of the biggest investment deals of the year, as was the case in 2016.

Shopping centre development is gradually making a comeback following a lengthy hiatus. Last year seven shopping centres were opened, adding a total GLA of 306,000 sqm to the existing stock and equating to the same surface area added over the two previous years combined.  

In 2017, the segment’s development volume is expected to be somewhat less than in 2016, expecting a GLA of around 200,000 sqm to be built. The most significant new openings will be Plaza Rio 2 (Madrid) and Sambil Outlet (Leganes).  Several retail parks are also scheduled for delivery, with Terrassa, Alfafar and Carcaixent being the three main projects.  

Beyond 2017, the pipeline will expand once again, given that a steady flow of new projects are coming to light, some on an inter-regional scale. Among the developments planned, we would highlight: Intu Costa del Sol (Torremolinos), Palmas Atlas (Seville), Torrecárdenas (Almeria), Tamaraceite Sur (Las Palmas), Finestrelles (Esplugues de Llobregat), Open Sky (Torrejón de Ardoz) and Designer Outlet Plaza Mayor (Malaga).  

 

Our Top Tip For
New Arrivals

To clear up a common misconception. Spanish people do not enjoy long siestas during the day. They are much too busy trying to get their work done so they can hit the bars early. You can talk business or pleasure long into the night while sitting on terrazas on the long summer evenings.

Currency

Euro (EUR)
EUR €1
USD $1.23
GBP £0.88

Language

Spanish
Hello: Hola
Thank you: Gracias

International Dialing Code

+34

Time Zone

GMT+1

Cost of a Pair of Jeans

99.00 EUR

Cost of a Cup of Coffee

1.60 EUR

Cities in Spain

Contact Us

Gonzalo Senra
Edificio Castellana 200 - planta 8
Paseo de la Castellana, 202
+34 91 514 38 51 | gonzalo.senra@cbre.com