Caja PDF

Comparta fácilmente sus documentos PDF con sus contactos, la web y las redes sociales.

Compartir un archivo PDF Gestor de archivos Caja de instrumento Buscar PDF Ayuda Contáctenos



Season 2015 2016 CBRE Retail Spain .pdf



Nombre del archivo original: Season 2015-2016 CBRE Retail Spain.pdf

Este documento en formato PDF 1.5 fue generado por Adobe InDesign CC 2015 (Macintosh) / Adobe PDF Library 15.0, y fue enviado en caja-pdf.es el 18/04/2017 a las 14:05, desde la dirección IP 84.127.x.x. La página de descarga de documentos ha sido vista 1262 veces.
Tamaño del archivo: 6.8 MB (42 páginas).
Privacidad: archivo público




Descargar el documento PDF









Vista previa del documento


SEASON

2015-2016
RETAIL SPAIN

Contents
INTRODUCTION 5
EXECUTIVE SUMMARY 6
1  ECONOMY 8
2 RETAILERS 12





Retailer viewpoint: Matthew Cook,
General Manager, AW LAB
Retailer viewpoint: Sergio Rivas,
CEO, Eat Out Group

24
26

3 E-COMMERCE 28
4 HIGH STREET 34
Special reports: Gran Vía and Las Ramblas 48
5 MAIN SHOPPING CENTRE INDICATORS 60
6 SHOPPING CENTRE INVESTMENT

66

7 SHOPPING CENTRE TRENDS

76

Contents

3

INTRODUCTION

2016: RETAIL
GROWTH GAINS
TRACTION
Alex Barbany
National Director Retail – CBRE Spain
The images of the endless queues of customers
stretching around the block at the opening of the
Primark store on Madrid’s Gran Vía, currently the
Irish chain’s largest store in Spain, is testament to
the on-going evolvement and modernisation of
the retail sector in Spain. The boom in the sector
is fundamentally based on rising consumption
levels, thanks to both the improving economy
and jobs market and to growing tourism,
particularly in Barcelona, Madrid and the main
coastal cities. Spain is the third most visited
country in the world and the stores in our main
capital cities are attracting a growing and ever
wider range of consumers interested in shopping
tourism.
As a result, retailers have increased their activity
levels in recent months. Comparable sales
growth in shopping centres, up 5.5% in 2015,
is one of the statistics which corroborates this
trend, as do on-line business figures, which
have registered an average annual growth of
22% over the last 5 years. 2016 is reaffirming
this trend, with comparable sales in the CBRE
shopping centre index rising 3.9% during the first
few months of the year. All this has resulted in
the average spend per customer increasing for
the first time since 2010.
As a result of growing demand from major
retailers, with a clear focus both on high streets
and prime shopping centres and on increasingly
larger store formats, areas such as the already
mentioned, Gran Vía in Madrid and Las Ramblas
in Barcelona, are being transformed into major

retail hubs. There is also strong activity in
markets such as Valencia, Bilbao and Palma de
Mallorca. The lack of available prime product
was a contributing factor in rents climbing by
between 5% and 10% in the best shopping
centres and high streets in Spain in 2015 and
this trend has continued this year.
At the same time, the investment market
continues to record all-time highs, amassing
€2.7 billion in shopping centre transactions last
year. Our forecast investment volume for 2016
stands at around the €2.0 billion mark, which
despite being lower than 2015, still reflects the
high liquidity and activity levels in the sector.
Strong investor appetite and, once again, the
limited number of opportunities to acquire
genuine prime products has compressed initial
yields down to below 5% in shopping centres
and to below 3.5% on the high street, hence
significantly reducing the lag with markets such
as Paris or London.
A new socialising culture and the current
digitalisation of the world are inviting and forcing
the retail sector to redefine itself and evolve. The
opening of almost 350,000 sqm of new shopping
centre GLA forecast for 2016 is testament to this,
as is the never before seen amount of major high
street projects appearing in Spain. Aside from the
on-line world, for retailers and anyone involved in
the retail sector, everything starts with and revolves
around the shopping experience. Investing in this
concept is inevitable, but how it is done is the real
key to success.

Gran Vía 32 (Madrid).

5

EXECUTIVE SUMMARY

KEY FACTORS
AT A GLANCE

Parc Central Shopping
Centre - Tarragona.

ECONOMIC
GROWTH TAKES
HOLD

RETAILERS
INTENSIFY THEIR
EXPANSION PLANS

All Spanish economic
indicators registered
positive figures in
2015 and were a
strong driving force
for business. GDP and
private consumption
grew above 3%, the
unemployment rate
dropped to 22% and
consumer confidence hit
all-time highs.

Thanks to the new
economic backdrop and
rising sales figures, many
brands have resumed
their expansion plans.
Both long-standing
market operators, as well
as new-comers to the
market are investing in
Spain, although they are
carefully cherry-picking
their retail units.

This positive growth
trend is expected to be
maintained in 2016,
although at a more
moderate level.

At the same time as
showing an interest in
Madrid and Barcelona,
retailers are showing
greater interest in cities
such as Bilbao, Valencia,
Malaga and Palma de
Mallorca, which are
benefitting from the rise
in tourism.

6

Season 2015-2016 | CBRE

E-COMMMERCE AND
MULTI-CHANNEL
STRATEGIES GAIN
GROUND
Spain is one of the
European countries
where e-commerce
is growing the most.
On-line buying remains
fairly limited among
the Spanish population,
meaning it is a field with
considerable room for
growth. At present, it
represents just 2.5% of
total sales.

THE CHANGING
FACE OF HIGH
STREETS
The rising interest from
retailers to open flagship
stores is causing some
streets to be completely
revamped. Some
examples are Gran Vía
in Madrid, where the
opening of Primark and
other flagship stores, such
as by New Balance and
Adidas, are reshaping the
retail offering. The same
can be seen in Barcelona
in Las Ramblas, where
thanks to the arrival of
new operators, the high
street is becoming a new
hub for mass-market
retail in the city centre.

SALES AND RENTS
ON THE UP IN
SHOPPING CENTRES
In 2015, shopping
centres booked improved
results, with sales for the
centres in the CBRE Index
growing by 5.5% on
average, almost double
the figure registered by
retailers in general. The
spend-per-head also
rose considerably from
€10.50 to €11.70 per
visitor.
As a result, rents rose for
the first time since the
onset of the economic
crisis, by between 5%
and 10% for prime high
street and shopping
centre locations.

ANOTHER YEAR
OF RECORD
INVESTMENT
Retail investment in 2015
hit record highs, both
in the high-street and
shopping centre sectors,
with investors showing
an appetite for all
types of retail products
throughout the year.
Thus far, investment
activity in 2016 has been
greater than initially
expected. Furthermore,
with several deals
expected to be closed
during the second half of
the year, 2016 could end
with a total investment
volume of €2.0 billion
in the shopping centre
sector.

NEW SHOPPING
CENTRE TRENDS
To remain competitive,
shopping centres must
continually move with the
times and incorporate
new management
strategies.
Big Data is set to be
key as it allows one to
segment a shopping
centre’s clientele and
cross-check their
purchasing habits
with their physical
movements. Tools
already exist that allow
shopping centres to
create their own Big Data
and make use of it.

During the economic
crisis, restaurants in
shopping centres moved
towards a low-cost
format, however, this
trend is likely to change
as consumption rises.
Other European
countries have
introduced casual dining
in their shopping centres,
offering a better quality
product and service,
however, in Spain better
value-for-money may be
a more feasible next step
in many centres.

Key factors at a glance

7

CEMENTING THE GROWTH
PHASE

1
ECONOMY

With GDP up 3.2% in 2015, the
Spanish economy was one of the
Eurozone’s top performing areas. Both
internal and external factors played
a part in this improvement: reduced
oil prices, favourable financing terms
and conditions, strong internal private
demand headed by household
consumption (with y-o-y growth of
3.1%), etc. The economic upswing had
a positive effect on job creation, with the
unemployment rate dropping from 24%
at the end of 2014 to 21% at the end of
2015.

Economic fundamentals will without a doubt set the tone for the
retail sector across all segments. GDP growth and rising employment,
along with consumer indices, forecast a positive 2016 in which all
signs seem to suggest that tourism will once again hit record highs.

Spanish economic growth prospects
remain positive for 2016 (2.7%,
according to the Bank of Spain), albeit
slightly less buoyant than in 2015.
Private consumption is set to grow at
levels around those of 2015 (2.9% for
2016) and is expected to continue to
boost retail sales. However, a spike
in financial instability at the start of
2016 once again led to uncertainty
regarding the world economy’s solidity.
Potential recessions in emerging-market
countries, a question mark hanging
over some European banks, the Brexit
implications and the commodities
backdrop have triggered a fresh flight
to safe-haven assets among investors.
The impact of this unexpected lack of
confidence is unclear; hence attention
must be paid to financial turbulence and
its possible impact on the economy.

GDP & CONSUMPTION
IN SPAIN
%

4
3
2
1
0
-1
-2
-3
-4
2010
GDP

2011

2012

2013

2014

2015

2016

Consumption

Source: INE. 2016 - Bank of Spain forecast

8

Season 2015-2016 | CBRE

Economy

9

Consumer confidence hit highs in 2015, consolidating
the recovery that began two years ago.

Tourism is a particularly important
factor for the retail sector, accounting
for 11.7% of the Spanish GDP in 2015
and recovering strongly in recent years.
In 2014 the tourism GDP climbed to
2.9% and in 2015 it reached 3.7%.

2015 marked a new record in the
number of overseas tourists, with more
than 68 million people visiting Spain,
up almost 30% on 2010. On top of
this, it was not just the number of
tourists that rose, their spending also
increased. Total expenditure amounted
to €67,385 million in 2015, up 7%
y-o-y. Over the last few years, the
number of tourists visiting from Asia,
the Nordic countries and the USA has
risen, all of which are markets with
strong purchasing power, which have
led to an increase in the average daily
spend per tourist.

RETAIL SALES
Index

110

General
Large retailers

105

Small chains

100
95
90
85
80
2010

NUMBER OF TOURISTS AND
AVERAGE DAILY SPEND

2011

2012

2013

2014

2015

2016

Source: INE

Thousands of tourists

Euros

70,000

115

110

65,000

105

RETAILER AND CONSUMER CONFIDENCE (Spanish Data)
Index

20

Retailer confidence

10

Consumer confidence

0
-10

60,000
100

-20
-30

55,000

95
-40

50,000

90
2010
Total nr. tourists

Source: Egatur

10

Season 2015-2016 | CBRE

2011

2012

2013

Average daily spend (right axis)

2014

2015

-50
2010

2012

2014

2016

Source: European Commission

Retail sales rose considerably in
2015, up 3.0%1, with major retailers
obtaining better results than smaller
chains. To date in 2016, retail sales
have continued to surge, growing 3.9%
as at April 2016. Fashion turnover
(apparel) however, has lost some
steam, with growth easing to 2.2% so
far this year (3.3% in 2015).

Consumer confidence in Spain hit new
highs in 2015, coming in considerably
higher than the European average and
further cementing the economic recovery
which began two years ago. This said, the
decline in economic expectations seen at
the start of the year has dampened the
outlooks of both consumers and retailers
so far this year, causing them to lose part
of their optimism.

1  Retail

Sales Index 2015,
corrected for seasonal and
calendar effects, excluding
petrol stations.

Economy

11

RETAILERS IMMERSED
IN EXPANSION

2
RETAILERS
2015 was marked by an increase in retail activity. As the year
progressed, the level of activity rose, as did the number of new players
entering into the market, the latter providing a real boost for the
sector following several years of economic crisis. Following on from
the recovery phase, plans for expansion, extensions, flagship stores
and new brands now mean we are able to talk about consolidation
and growth in the sector.

Thanks to improved sales and the
upbeat economic outlook, operators
are currently immersed in an expansion
phase, both in shopping centres
and on the high street. On one
hand, consolidated brands in Spain
are expanding and improving their
store networks, whilst on the other,
international operators interested
in launching in Spain are taking up
strategic positions with a view to opening
their first store. What is more, even after
the setback caused by the economic
crisis, Spain continues to move up the
rankings of the most appealing countries
to launch new brands.
FASHION SECTOR
The trend of opening megastores
seems unstoppable. Major fashion
brands are highly active in this sense
and are implementing new high street
strategies, looking for larger, more
visible stores, and where possible in
emblematic buildings. The most well
known example is Primark which, after
opening its first flagship last October on
Madrid’s Calle Gran Vía (12,400 sqm),

is already working on opening large
stores over the upcoming months in the
city centres of Bilbao and Valencia. It
also remains in the process of searching
for suitable locations in Barcelona and
other cities. Mango is another brand
actively engaged in opening large high
street stores: in 2015 it opened two
megastores in Barcelona on Rambla
Catalunya and Las Ramblas, and in
Madrid on Calle Orense, it is also
currently preparing to open its new
Calle Serrano flagship store. Mango’s
strategy is not just limited to Madrid
and Barcelona, with the same directive
being applied in other cities such as
Santander, Ibiza and Gerona.
H&M is another of the big fashion
names that is opting for the flagship
store format. In fact, it is soon set to
open its new store on Barcelona’s
Passeig de Gràcia, in a 7,800 sqm
retail unit. Inditex, is also designing
new megastores for its brands. The
new Pull&Bear store which opened
on Calle Hermosilla (Madrid) and the
future Massimo Dutti store on Passeig
de Gràcia are testament to this and will
be the largest stores of both respective
brands to date.

Consolidated
brands in Spain
are expanding and
improving their
store networks,
whilst international
operators interested
in launching in
Spain are taking
strategic positions
with a view to
opening their first
store.

FASHION BRAND WORLD RANKING
(Worldwide sales market share)

2004

%

2014

2%
1.5%
1%
0.5%
0%
1

2

3

4

5

6

7

H&M

Zara

T. J. Maxx

Ross

Uniqlo

Primark

Gap

Source: The Economist/Euromonitor. Fashion and Footwear Sectors. T.J. Maxx trades as T.K. Maxx in Europe.

12

Season 2015-2016 | CBRE

Retailers

13

El Corte Inglés, is going down
the specialisation route within its
department store format. In 2015, it
opened the MAN store on Calle Serrano
(Madrid), where it dedicates seven floors
to exclusive fashion and accessories for
men, a format it has recently mirrored
for the female market by opening a
feminine equivalent on the same street.
As well as the expansion of the
operators already present in Spain,
the competition is also set to heighten,
with new retailers planning to break
into the Spanish market. The Fashion
sector is becoming increasingly more
international and the world’s main
operators now contest sales figures
in a global market. The next major
operator to come onto the Spanish
scene will be Uniqlo, a Japanese
company specialising in mass-market
fashion and currently at number 5 in
the world ranking. Its first opening will
be its flagship store in Barcelona, while
it is still in the process of identifying a
suitable store location in Madrid.

The Italian brand Terranova has
already confirmed that it will enter
into Spain, whilst other names already
partially present such as OVS are
ramping up their expansion plans. The
US brands Gap and Victoria’s Secret
are continuing to test the waters in
the Spanish market, occupying retail
spaces in airports and El Corte Inglés
department stores, before deciding to
take the plunge and open their own
stores in Madrid and/or Barcelona.

The trend of opening megastores seems
unstoppable, with major fashion brands actively
implementing new high street strategies.

Primark – Gran
Vía (Madrid)

14

Season 2015-2016 | CBRE

Retailers

15

Competition is set to heighten, with
new retailers such as Terranova, OVS
and Uniqlo planning to break into the
Spanish market.

Pull&Bear - Calle Hermosilla
(Madrid).

Mango - Las Ramblas
(Barcelona)

Future H&M store Passeig de Gràcia (Barcelona)

16

Season 2015-2016 | CBRE

Retailers

17

Thanks to the
growing popularity
of sneakers, what
was once a small
niche market now
accounts for over
26% of worldwide
shoe sales.

SPORTS FASHION SECTOR

The sports fashion sector is positively
booming, especially the sports footwear
segment. Thanks to the popularity of
sneakers, what was once a small niche
market, now accounts for over 26% of
worldwide shoe sales.
It therefore comes as no surprise
that retailers are now focusing all
their efforts on this segment to gain
consumers’ attention. Established
operators are opening major flagship
stores in Spain’s main cities, for
example New Balance and Adidas on
Madrid’s Gran Vía and Foot Locker
on Calle Preciados, where they tend to
opt for stores in excess of 1,000 sqm.
The Japanese brand Asics continues
to thrive and has opened a megastore
on Madrid’s Calle Alcalá. Decathlon,
on the other hand, is introducing
its smaller format Decathlon City
(previously called Lot of Colors) on
the high streets and in the shopping
centres of Spain’s main cities.
New operators, such as Italian brands
Urban Jungle and AW Lab, along
with the British chain JD Sports which
heads the list, are also expanding
in Spain and investing in both high
street and shopping centre formats.
JD Sports, plans to open 40 new
stores by 2018 and has launched its

AW LAB - Bonaire Shopping
Centre (Aldaia, Valencia)
Adidas Gran Vía (Madrid).

second brand Size?, opening its first
store on Calle Fuencarral in Madrid.
Another British operator Sports Direct,
opened its first store in Spain in 2013
in the Puerto Venecia shopping centre
(Zaragoza), before opening its second
store in Madrid’s Parque Corredor
shopping centre at the end of 2015.

SPORTS FASHION BRAND WORLD RANKING
Nike

1

Adidas

2

V.F. Corporation

3

Puma

4

New Balance

5

Asics

6

Armers Sports

7

Given the segment’s success, other
retailers are assessing the possibility of
entering into this market, the Twinner
group, for example, has already got
the ball rolling with its Foot on Mars
store network. The German group
Deichmann is launching its Snipes
chain in Europe and Spain and has
opened its first store in the Grancasa
shopping centre (Zaragoza). Intersport
plans to enter into the Spanish market
with its brand The Athletes Foot, whilst
Forum Sport is also contemplating
launching its own trainer concept.
In sum, all signs suggest that the thriving
activity seen in this sector will continue
over the next few years, due in part
to the number of operators already
present and their ambitious expansion
plans and also to the amount of brands
considering entering the Spanish
market.

0

10

20

30 €

Foot Locker Calle Preciados (Madrid)

Source: Statista.
Sales in billions (€)

18

Season 2015-2016 | CBRE

Retailers

19

HOMEWARE SECTOR

The Homeware sector is also on the
up, highlighting inner-city formats such
as Tiger, Hema and Ale-Hop, which
are all actively engaged in expansion
phases. These are brands that compete
with the traditional operators such as
hypermarkets, discount stores and
local shops via competitive prices and
modern designs, setting themselves
apart by offering a fun shopping
experience.
The Dutch firm Hema is the latest to hit
the Spanish market, choosing Madrid
to open its first store. After opening at
the upper-end of Calle Fuencarral in
2014, it opened two new stores in 2015
on Calle Orense and Calle Conde de
Peñalver, whilst in Barcelona it opened
its first store on Calle Portaferrissa.
Ale-Hop, however, has just opened its
second store on Madrid’s Calle Gran
Vía, located at the upper end of the
street.

One of the sectors that has grown the most posteconomic crisis is the restaurant sector, now that diners
have started to grow again both during the week and at
weekends.

chains being very active. Amongst
them is the Eat Out group, which is
expanding via its chains Ribs, and
Dehesa Santa María as well as
revamping the concept of Pans &
Co. Meanwhile, the Amrest group is
growing via its La Tagliatella brand
and the Restalia franchise TGB is
making a dent in the new generation
burger bars. For its part, Taco Bell
(belonging to the Pizza Hut and KFC
group), which is being very active in
the fast-food segment, has announced
its plan to open 50 restaurants in the
upcoming years. Lastly, we would
highlight the Foodbox group that is
growing after acquiring smaller chains
such as Italian fast-food operator
PaPizza, which it bought in 2015.
Also of particular note is the surge
in modern bakery cafés. Over recent

years, several types of these chains
and franchises have prospered, such
as Uvepan, Santa Gloria, Granier,
Pannus and Panaria. They bring the
concept of bakeries, patisseries and
cafeterias together under one roof and
in contrast to traditional cafes, feature
modern designs and focus on offering
quality products in a welcoming
environment. This segment has very
high expansion potential, given that the
concept fits a wide variety of locations,
from shopping areas to tourist and
residential areas.
Costa Coffee also stands out in the
coffee shop sector, a British competitor
of Starbucks that following on from its
launch in Spain in 2014 is currently
implementing an ambitious expansion
plan both on the high street and in
shopping centres.

Ribs - Equinoccio
Shopping Centre
(Majadahonda)

Major fashion operators are also
embracing the homeware segment.
Primark introduced its Home range
in its flagship store in Gran Vía, whilst
H&M is currently in the process of
introducing its Home formula in its larger
stores, starting with its store in Madrid’s
Plenilunio shopping centre. Inditex was
the first to break into this market in 2003
with its brand Zara Home. In fact, Zara
Home now boasts a network of over 140
stores in Spain and within the group, it is
the brand which is prospering the most,
with sales up by 21% in 2014 compared
to the previous year.

RESTAURANT SECTOR

One of the sectors that has grown
the most post-economic crisis is the
restaurant sector. The improving
economy has brought diners back
to restaurants for weekend lunches
and dinners, whilst activity has also
increased in the times of day that were
hardest hit during the crisis, namely
mid-week breakfasts and dinners.
Both shopping centre restaurants and
high street restaurants are expanding
significantly, with several restaurant

20

Season 2015-2016 | CBRE

Costa Coffee Miramar Shopping
Centre (Fuengirola)

Retailers

21

Versace Calle Serrano (Madrid).

GLOBAL BREAKDOWN OF LUXURY
SECTOR SALES BY PURCHASER ORIGIN

Chinese

28%

Western
Europeans

17%

Rabat - Passeig de
Gràcia (Barcelona).

LUXURY AND PREMIUM SECTORS
North Americans

17%

Japanese

13%
Other Asians

9%

Middle East
Latin Americans
Eastern Europeans

5%

5%

Source: Deutsche Bank and Bain

22

Season 2015-2016 | CBRE

6%

2015 was not a good year for the
luxury sector: the effects of the sluggish
Chinese economy together with the
strong dollar, among other factors,
impacted the luxury sector at the
international level. In contrast, the
depreciation of the euro is benefitting
Europe and Spain, and sales to luxury
clientele in the Eurozone have not been
so affected.
Nevertheless, although the expansion
rate and openings of the main luxury
brands has slowed, the interest in Spain
for luxury continues. A highlight of
2015 was Versace’s decision to return
to Madrid, opening a new store on
Calle Serrano after doing the same on
Passeig de Gràcia in Barcelona in 2014,
a year which also saw the return of
Balenciaga to Spain, with the opening
of a boutique on Calle Lagasca in
Madrid.

The number of luxury store
openings dipped in 2015,
although the Spanish market
did welcome back brands such
as Versace and Balenciaga.
The rest of the openings were largely
relocations, giving a special mention to
Madrid’s Calle Ortega y Gasset where
Bruno Cucinelli opened a new store,
Chanel and Bvlgari both relocated and
Gucci increased its floor area.
In contrast, activity in the premium
segment, which requires smaller retail
units, has been fairly upbeat both in
prime areas and the areas surrounding
them, with brands such as Philip Plein,
Pinko, Maje, Ermano Seevino and
Ba&sh all very active.

Chanel Calle Ortega y Gasset
(Madrid).

Retailers

23

SPAIN, RISING STAR

As in previous
years, Spain
remains one of top10 markets targeted
by international
retailers.

The appeal of Spain among
international retailers can be seen in
CBRE’s latest annual report ‘How Active
are Retailers Globally 2016’ which
analyses which countries are preferred
by major brands looking to expand their
international footprint. According to the
report, Spain is one of the world’s top
ten target markets.
Despite concerns regarding the
economy, retailers continue to see
potential in the Chinese and US
markets. Generally speaking, the two
main concerns are potential increases
in occupancy costs and the economicfinancial uncertainty.

MAIN TARGET MARKETS FOR INTERNATIONAL
RETAILERS RANKING
RANKING

TARGET COUNTRY

% RETAILERS

1

Germany

35%

2

France

33%

3

United Kingdom

29%

4

China

27%

5

EE.UU.

25%

6

Hong Kong

24%

7

Japan

22%

8

Holland

22%

9

ESPAÑA

21%

10

Singapur

21%

RETAILER VIEWPOINT
Matthew Cook
General Manager, AW LAB

One of the newcomers to the
Spanish market is the Italian sports
footwear chain AW LAB. In this
short interview, General Manager
Matthew Cook takes a look at the
sector and its expansion strategy.
Bearing in mind that for AW
LAB, the Italian market is the
most important, why did you
choose Spain as a priority
market for expansion?
We chose Spain because in
southern Europe, it is the market
that most resembles ours, both in
terms of tastes and trends, and
because we believe that the Italian
style of the AW LAB collections
would be well received by our
neighbouring countries, such
as Spain. Moreover, the sports
footwear sector of the Spanish
market is thriving and we identified
an opportunity to introduce a new
chain of sports lifestyle wear, to
complement the existing market
offer.
There is an ever-increasing
interest in trainers. What do you
think is the reason for this?
The trainer culture hit Europe a
few years ago, after first taking
hold in the USA, and since then
it has gradually become part of

“There is space for
other operators,
but only those that
are able to identify
and understand
consumer needs,
and best manage
their relationship with
the brands will be
able to guarantee a
successful future”.

consumers’ everyday life.
Trainers are no longer just
another adolescent accessory,
but have been reinvented by
the main fashion brands and
turned into a “must have” for
people of all ages.
An ever-increasing number
of operators want to tap
into this market and even
retailers outside of the sector
are trying to break into it.
Do you think that there is
enough room for everyone?
Broadly speaking, the retail
business, and the sports
footwear sector in particular,
is not an easy one. A strong
business plan and astute
marketing management is
required, as well as a flexible
structure that will allow a
company to react quickly to
changing trends. There is space
for other operators, but only
those that are able to identify
and understand consumer
needs, and best manage their
relationship with the brands
will be able to guarantee a
successful future.

What distinguishes the
AW LAB brand, what
are your unique
selling points versus
the competition?
AW LAB’s main strength is its
ability to appeal to both men
and women. In fact, we are the
only European sports lifestyle
retailer that can boast a
woman vs. men ratio of almost
60:40 amongst its clientele.
The concept of AW LAB stores
is clean, friendly and never
aggressive. This is also the
case with our staff that work
in our stores, who are also
guided by the AW LAB values:
team spirit, an inquisitive mind,
being up for a challenge,
honesty and transparency.
Our clients are aware of these
values; they see them and
appreciate them. Another
of AW LAB’s strengths is our
product: we only handpick
the best international branded
trainers, and our own clothes
line offers our clients styles
to personalise their look in a
new and different way each
time they dress. All this can
be summed up as our pay off,
which is also our slogan: PLAY
WITH STYLE
Where do you see the brand
in the Spanish market in the
medium term?
We want to consolidate
our presence in Spain in the
near future and are planning
to open 40-50 stores in the
main Spanish cities and the
most popular shopping centres.
Our aim is also to increase
awareness of our brand and
become the benchmark retailer
for purchasing trainers in
Spain.

“We want to
consolidate our
presence in Spain
in the near future
and are planning to
open 40-50 stores
in the main Spanish
cities and the most
popular shopping
centres.”

What are AW LAB’s
preferences regarding
clientele type? For example,
does the target public have a
higher than average profile
or is it mass-market? And do
you target men more than
women?
AW LAB is based on a unisex
concept and our main strength
is that this appeals to both men
and women, which makes us
unique in Europe. We mainly
target young people, but as
I said before, the attitude
towards trainers is no longer a
question of age, but rather one
of mentality. This is why AW
LAB has plenty of potential to
increase its market share and
form part of the mass market.

Source: CBRE. How active are retailers globally 2016.

24

Season 2015-2016 | CBRE

Retailers

25

We focus on areas with midlarge populations in Madrid,
Catalonia, Levante and
Andalusia.

RETAILER
VIEWPOINT
Sergio Rivas

CEO, Eat Out Group

“Within the different
restaurant segments, the
fast casual and casual
dining segments are the
fastest-growing”.

26

Season 2015-2016 | CBRE

In terms of the performance
in the different restaurant
segments, there has been
higher growth in the fast casual
and casual dining concepts,
where our brands Pans &
Company and Ribs are leading
the way.
¿What differences would
you highlight between
high street restaurants and
shopping centre restaurants?
Do you think one has more
potential than the other?
High-street restaurants benefit
from more flexibility in terms of
opening hours, whilst shopping
centre restaurants have higher
sales (linked to leisure and
retail) at the weekends when
more people tend to visit them.

The Eat Out group, one of the
most consolidated restaurant
chains in Spain, appointed
Sergio Rivas as its new CEO
last year. We ask him for his
take on the sector and the
company’s future plans.

Both types of location have the
same potential for our brands;
in fact, we are actively working
on opening Pans & Company,
Ribs and Dehesa Santa María
reataurants in both high street
and shopping centre locations.

The restaurant sector is
now recovering from the
economic crisis (growing
at around 4.5% in Spain).
Do you see a difference in
growth rates for example
between coastal areas and
inland areas in Spain?
And between restaurant
segments?
Our growth is stable across
the three brands (Pans &
Company, Ribs and Dehesa
de Santa María), both on the
coast and in inland locations.

With a prospering economy
and rising consumption, we
seem to have embarked on
a new cycle. How does Eat
Out plan to continue to grow
in the restaurant sector?
Eat Out is one of the largest
restaurant groups in Spain and
has more than 25 years of
experience in the sector. Our
development and expansion
strategy includes identifying
new franchises for our brands,
especially for Pans & Company,
Ribs and Dehesa Santa María,

which are our three brands that
are expected to grow the most.
Pans & Company is the
most consolidated brand
and is currently successfully
undergoing a complete
change of image. Broadly
speaking, the group is going
to focus on three targets over
the upcoming months: firstly,
remodelling the brand and
the restaurants, secondly,
improving the product and the
experience and lastly, but by no
means least, implementing a
marketing strategy in line with
the changes.
Under the Pans 3.0 concept,
we are remodelling the
company’s image to offer
clients a warmer atmosphere,
with a comfortable and
welcoming environment that
also ensures a uniform product
range on a national level. And
this has already been achieved,
as in the establishments that
are already operating under
the 3.0 concept, sales have
increased by 30%. We are
also adding value by offering
a more tailored service with
greater attention to detail –
more cutlery, paper placemats,
glasses – allowing us to move
closer to the casual dining
concept and away from the
quick service and fast food
segments.
Other strategies include the
introduction of a cafeteria
corner – the Pans Café – which
opens us up to the morning
and afternoon trade, therefore
not limiting us just to lunches
and dinners. By doing this, we
increase both the product range
and sales.

“Pans & Company is
the most consolidated
brand and is currently
successfully undergoing a
complete overhaul”. The
main targets for the next
few months will be the
remodelling of the brand
and the establishments,
the improvement of
the product and the
experience and the
implementation of a
marketing strategy in line
with the changes”.

Eat Out has a wide variety
of restaurant themes. Do
you give priority to any
one brand? Do you plan to
launch any new brands for
example in the take-away
segment?
Although Pans & Company,
launched 25 years ago, is the
group’s best-known brand
and is in good shape, now
that 90% of the establishments
that brought nothing to the
company have been closed,
Ribs, another Eat Out brand,
has great potential that we want
to fully exploit. At present, there
are only 23 Ribs restaurants in
Spain, but we are working hard
to open new establishments.

and nothing brought in ready
prepared. Also, the fact that
the restaurants have a charcoal
grill, which is lit on the day the
restaurant opens and never put
out, and that the restaurants are
decorated with exclusive pieces
acquired in antique shops, fairs
and markets in the US makes
every establishment unique. In
addition, Ribs has implemented
the Big Parties business line,
offering clients the possibility
to enjoy an authentic American
experience with typical
Halloween and Thanksgiving
menus.
In Western Europe we
are seeing a shift towards
higher quality restaurants
in shopping centres. Do you
think that shopping centres
in Spain are going to follow
suit?
The role of shopping centres
will become increasingly
important in driving restaurant
sector growth in our country
and our company will continue
to invest in this growth.

One of our main targets
is to boost the aspects that
identify our brand: greater
importance given to food
preparation than competitors,
with everything cooked on-site

Retailers

27

R

3
E-COMMERCE
Along with the recovery in consumption, e-commerce sales
continue their meteoric rise. Turnover reached almost €16,000
million in 2014, 25% higher than the previous year; an upward
trend which continued in 2015. In Q2 2015 (the latest available
figure from the CNMC - Comisión Nacional del Mercado y la
Competencia), turnover was 27% up y-o-y. It would be fair to
assume that in 2015, the segment could have registered a total
turnover of €20,000 million. In fact, Spain has one of the fastest
growing e-commerce industries in Europe, as demonstrated by the
on-line sales figures from the last five years which have risen on
average by 22% per year.

  etail business only accounts for
32% of total e-commerce
turnover, given that other sectors such
as Services, Wholesale Trade and
Unknown/Others come under the
same umbrella. Services is the top
e-commerce category (54%), as this
is where on-line travel is included.
Retail e-commerce recorded an annual
turnover of €5,050 million in 2014,
representing just 2.5% of the total
retail business. The percentage is very
low compared with other advanced
countries such as the USA and UK
where they account for 15% and
18%, respectively. These percentages
highlight the fact that the digital sector
in Spain has considerable future
potential.
However, some retail sectors already
have a significant on-line turnover in
Spain, such as Fashion which booked
€760 million via this channel in 2014.
The on-line launch of El Corte Inglés
and Zara gave a substantial boost
to this segment, with both quickly
becoming the two main e-commerce
Fashion operators. According to a
survey carried out by the website

moda.es among the leading fashion
operators with on-line presence,
10% of their turnover is billed via
the internet. If total on-line and offline sales are combined, the on-line
weighting in the whole Fashion sector
amounts to 4.7%. Inditex invoices
around €553 million in on-line
sales worldwide, with the group’s
e-commerce weighting standing at
3.3%.
The Food segment is another sector
with a high level of on-line sales in
Spain, with total sales coming in at
around €1,000 million in 2014. This
only represents 1.3% of the sector’s
total sales, but invoicing €76,000
million per year, it has enormous
growth potential, particularly if we bear
in mind that home delivery of in-store
purchases is a significant segment.

En el último lustro
las ventas on-line
aumentaron una
media del 22%
anual, siendo
España uno de
los mercados
donde más crece
el comercio
electrónico.

In terms of on-line Food & Beverage
sales, Covap, El Corte Inglés,
Carrefour and Ulabox are some of the
main operators. In 2014, Carrefour
acquired Rue du Commerce, a leading
on-line retailer in France, bringing it
5 million on-line clients. This was a

ON-LINE SALES PERFORMANCE
IN SPAIN
Millions of euros

5,762

7,318

9,201

10,454

12,731

15,891

20,000

2009

2010

2011

2012

2013

2014

2015

Source: CNMC,
2015 = CBRE forecast.

28

Season 2015-2016 | CBRE

E-commerce

29

strategic multi-channel deal, allowing
Carrefour to take advantage of its
Drive Service (also successful in Spain),
a system via which the chain will try
to direct its on-line customers to its
hypermarkets.
In Autumn 2015, as part of its panEuropean strategy, Amazon launched
its on-line supermarket website in
Spain. However, it is not easy to make
a profit in this small-margin sector.
Amazon is currently limiting itself to
the sale of non-perishable foodstuffs
and hygiene products, with a 24-hour
delivery guarantee. The next step could
be to launch Amazon Fresh, its fresh
produce arm which is currently being
trialed in the UK, although home

delivery of fresh produce is complex
and only seems to work for large cities.
Amazon has ambitious expansion plans
for Spain. It has decided to double
the area of its logistics facilities in San
Fernando de Henares (from 32,000 sqm
to 75,000 sqm) and to acquire land in El
Prat (Barcelona) to build an even bigger
warehouse. This plot of land will allow
the company to build a 210,000 sqm
warehouse which could serve not just
Catalonia, but also the south of Europe.
Meanwhile, in the USA Amazon has
taken the plunge and branched out into
the world of physical stores, opening a
700 sqm bookshop, clearly showing its
belief that its customer service can be
improved via bricks-and-mortar stores.

RETAILERS’ ON-LINE SALES VS.
TOTAL SALES BY SECTOR
Percentage of total sales

16.8%
9.9%
4.7%
2.5%

Retail

1.0%

1.3%

Furniture
Lighting and
Home

Food

Source: CBRE (Based on CNMC and INE data).

30

Season 2015-2016 | CBRE

Apparel

2.5%

5.2%

Footwear
and
Leather

Amazon book shop Seattle (USA).

CDs, Books,
Newspapers
and Stationery

Travel
Agencies

E-commerce accounts for just
2.5% of total retail sales, a very
low percentage compared to
other advanced countries such
as the UK and the USA.

In the USA, Amazon has taken
the plunge and branched out
into the world of physical stores,
clearly showing its belief that
its customer service can be
improved via brick-and-mortar
stores.

E-commerce

31

Smartphones are
set to be the key for
e-commerce in the
future.

M-Commerce Trend
Smartphones are set to be the key for
e-commerce in the future, as they not
only allow people to make purchases
from anywhere, but they are also the
device that people use the most to
communicate with friends and to use
social media.
The compatibility of mobility and
communication has created new habits
and has intensified the interaction
between the store, the internet and the
customer. An example of how the newly
denominated M-Commerce affects
offline and on-line business can be seen
in the results of the survey completed by

CBRE Spain in 2015 among shopping
centre goers. 19% of the people
interviewed said that whilst they were
shopping in a mall, they had compared
on-line prices with the centre’s in-store
prices. Moreover, 9% stated that they
had made on-line purchases whilst they
were physically in a shopping centre.
Therefore, M-commerce is already
producing good results bearing in mind
that smartphones have not been part
of our lives for very long. This can be
explained by the fact that in Spain most
people own smartphones, in fact 91% of
the people interviewed owned one and
66% owned a tablet.
The survey outlines that people visiting

CBRE SURVEY
DO YOU OWN THE FOLLOWING ELECTRONIC DEVICES?

91%

86%
68%

66%
Carrefour Drive service - Carrefour
Alcobendas shopping centre.

PC

Laptop

Tablet

shopping centres in the future will
interact highly with physical and on-line
stores, and will also consult opinions on
internet chatrooms or with friends on
Facebook or via Whatsapp, in order to
make the most informed purchase.

Smartphone

WHAT DO YOU USE YOUR SMARTPHONE FOR IN A SHOPPING CENTRE?

69%

For calls /text messages /whatsapp /email

44%

To use social media

21%

To search for basic shopping centre information
To compare on-line prices with in-store prices

19%

To search for in-store promotions in the
shopping centre

18%

To make on-line purchases
To buy cinema tickets /make bowling
or restaurant reservations, etc.

Social media can provide brands
uninterrupted access to consumers given
that new generations (as well as on-line
stores) are now connected 24-7.
This will therefore have a growing
social impact, with people turning into
authentic data managers, dealing with
the plethora of information at their
fingertips.

However, it is increasingly unclear
where a purchase starts and finishes,
and it is possible that the idea of
what is “on” and what is “off” could
be gradually lost. Click and collect
is already changing shopping centre
footfall patterns and it could affect
landlord-tenant lease agreements in the
future, meaning shopping centre asset
management will play an increasingly
important role.

Future shopping
centre goers will
interact highly with
physical and on-line
stores, and will also
consult opinions on
internet chatrooms
or with friends in
order to make the
most informed
purchase.

9%
5%

Source: CBRE Research 2015. Survey conducted among Spanish shopping centre goers.

32

Season 2015-2016 | CBRE

E-commerce

33

RETAILERS ON THE MOVE

4
HIGH STREET
The high street market is undergoing a complete overhaul, to the
point that the appearance of the main retail hubs in major cities is
changing. The leading international and national brands are taking
strategic positions, opening flagship stores in prime streets and
investing in larger stores than ever.

The demand to open stores in
prime areas is so great that the
traditional retail hubs are expanding
and surrounding streets, previously
considered secondary, are gaining
prestige. In Madrid, this is the case
with the streets leading onto Calle
Serrano, such as Hermosilla, Jorge
Juan and Lagasca, and parallel to it,
such as Claudio Coello. Gran Vía is
undergoing a major transformation,
both in the prime and more secondary
stretches of the street. In Barcelona,
the Las Ramblas area is turning into a
new high-street retail hub parallel to
Portal de l’Àngel. Nike and H&M were
the first to open here, before being
followed by other fashion operators
such as Desigual and more recently
Mango, confirming its status as a
fashion destination.

TENANT ROTATION

Positive sales figures are encouraging
many retailers to embark on more
ambitious expansion plans, which
is causing a high level of rotation of
brands on the main high streets. In

2015, Barcelona and Madrid saw a
large number of high street lettings
signed, similar to the amount closed in
2014, which was already a very active
year. In Barcelona, the considerable
number of new retailers opening on
Calle de Rambla Catalunya particularly
stands out, whilst in Madrid a
significant proportion of new operators
opened on streets leading onto Calle
Serrano, such as Hermosilla, Jorge
Juan and Lagasca, and parallel to it,
such as Claudio Coello. An additional
impact of the surge in demand is the
return of key-money transactions (an
additional payment in order to speed
up the termination of a lease).

The demand to
open stores in
prime areas is
so great that the
traditional retail
hubs are expanding
and surrounding
streets are now
gaining prestige.

Many of the new high street retailers
are foreign, with over twenty
international brands entering into
the Spanish market in 2015. Unlike
previous years, Madrid and not
Barcelona was the preferred destination
for retailers launching in the Spanish
market, with 60% of new operators
choosing the capital compared with the
32% that opted for Barcelona. The two
cities together account for 90% of the
new entries into the Spanish market.

DEALS COMPLETED IN BARCELONA AND
MADRID’S PRIME STREETS - 2015

3%

18% 8%

8%

18%

Diagonal Passeig de Pelai Portaferrissa Portal de
Gràcia
l’Àngel

32%

Fuencarral

14%
Goya

25%

Gran Vía

37%

Rambla de
Catalunya

4%

Preciados

8%

Ramblas

25%

Serrano

Source: CBRE

34

Season 2015-2016 | CBRE

High Street

35

Over 20 new
international brands
arrived in Spain
in 2015, with 60%
choosing Madrid
as their launch pad
and 32% opting for
Barcelona.

Most new international retailers belong
to the fashion sector, both the premium
and mass-market segments, but also
the luxury segment, despite the global
slowdown being seen in this sector.

The following were the most significant
new entries in 2015:
Céline, Balenciaga, Essentiel Antwerp,
Lipault, Rimowa, Nyx, Urban Decay,
Basler, Best And Fast Change, Closed,
Maria Revolta, Intimissimi Uomo,
Nautica, North Sails, Ba&Sh, Kid’s
Around, Billy’s Market, Knot Kids, Cvg,
Penti, Vista Alegre.

The supply-demand imbalance is
pushing rents up above forecasted
levels. In 2015, prices in the best
streets of Madrid and Barcelona rose
by between 5% and 10% versus the
previous year. Pressure on prices is
expected to hold in 2016 and further
rental growth is also forecast. At
present, there have not been any
significant variations in rental levels in
secondary areas.

The supply-demand
imbalance is
pushing rents above
forecasted levels.
In 2015, rents for
prime high-street
locations in Madrid
and Barcelona rose
between 5% and
10%.

HIGH STREET RENTAL LEVELS
IN BARCELONA & MADRID
Euros per sqm/month

100
130

90
170

120
150

220

190

70

100

150

300

Portal de l’Àngel

50

250

Passeig de
Gràcia

200

Pelai

60

45
65

70

90

95

110

110

160

130

Portaferrissa

Las Ramblas

35
90

25
50
110

Rambla
Catalunya

40
60

20
50
100

Diagonal

Euros per sqm/month

120
140

120
140

160
240

160

Preciados
< 100 sqm

180
240

300

Gran Vía
101-300 sqm

Source: CBRE.

36

85
150
150

240
300

110
150

Season 2015-2016 | CBRE

65

220
270

Serrano

250

Ortega y Gasset

301-500 sqm

150

50
85
200

Goya

501-800 sqm

55
100

45
75

40

140

65

Fuencarral

35
50
85

Princesa

801-1,500 sqm
Parfois - Gran Vía
(Madrid).

High Street

37

Tous - Gran Vía
(Madrid).

Scalpers - Calle Jorge Juan
(Madrid).

Rituals - Rambla de Catalunya
(Barcelona).

BDBA - Calle Claudio Coello
(Madrid).

Pikolinos - Calle Portaferrissa
(Barcelona).

38

Season 2015-2016 | CBRE

High Street

39

EXPANSION IN 2016

The rate at which retailers are
expanding their businesses has not
eased in 2016, despite the increase in
uncertainty. The demand for high street
units has held firm, although operators
have become very demanding and
cautious, once again lengthening
marketing periods compared to the
previous year.
Retailers continue to take advantage
of opportunities that arise in prime
locations, with consolidated retailers
being the most active, completing both

Nyx - Calle Fuencarral
(Madrid).

40

Season 2015-2016 | CBRE

new openings and refurbishments
and extensions. For example, the
refurbishment and extension of Zara’s
store on Passeig de Gràcia is well
underway, which will increase the store
by 4,000 sqm, in order to turn it into
one of the brand’s biggest flagship
stores in the world.
New overseas retailers are still entering
the Spanish market, however, the
process of choosing a first location and
implementing a new business structure
tends to be a slow one. Apart from the
confirmed entries of fashion operators

Future store of Terranova – Calle Boters
(Barcelona).

such as Terranova and Uniqlo, new
players are also appearing in other
sectors such as the US burger chain
Five Guys, which plans to open its first
restaurant on Madrid’s Gran Vía in
Autumn.

Retailers are broadening their horizons
and turning to other cities: Malaga, Seville,
Bilbao, Zaragoza, Valencia, Palma de
Mallorca.

Some operators that have recently
launched in Spain are implementing
ambitious expansion plans. The beauty
store Nyx, for example, which first
opened in Autumn 2015 on Calle
Fuencarral, has already taken two
other retail units on Gran Vía (Madrid)
and Cucurrulla (Barcelona). The Guess

group, which is also set to open its
flagship store on Calle Fuencarral,
plans to open a further ten stores in
other cities throughout Spain.

New Balance - Portal de l’Àngel
(Barcelona).

High Street

41

BACKDROP IN OTHER
SPANISH CITIES

Major operators are not only being
active in Spain’s two main cities, they
are now broadening their horizons and
turning to cities other than Barcelona
and Madrid. Interest in cities such as
Bilbao, Valencia, Malaga, Palma de
Mallorca and Seville is clearly linked to
the surge in tourism in Spain and many
brands are starting to see them as
important retail destinations.

Valencia

After Madrid and Barcelona,
prestigious national and international
brands are looking to open stores in
Valencia. Taking advantage of rental
stability, 2015 saw a high level of
tenant rotation largely on the back
of relocations and store extensions.
However, there were also several new
openings, with international names
such as American Vintage and
System Action opening in Jorge Juan,
Costa Coffee in Marqués de Sotelo
and Taco Bell in the Nuevo Centro
shopping centre. This trend has carried
on into 2016, with the arrival of Folli
Follie and Pepe Jeans in Jorge Juan

and Nyx in Colón. Over recent months,
although vacancy levels have dipped
slightly, operators have penalised
units with complicated layouts, thereby
drawing out marketing periods.
The divide by consumer type between
the three prime streets was reaffirmed
last year. The typical shopper on Calle
Colón is impulsive and a medium-low
ticket purchaser, Don Juan De Austria
attracts a young public and Jorge Juan
is home to medium-high ticket brands.
This said, Colon remains the most
sought-after street of the three. In our
view, the opening of Primark in Calle
Ruzafa will drive the market in the area
closest to Colón, changing the retail
route and creating stretches of different
specialisations on this street.
We believe rents will rise slightly in the
stretch closest to Primark, as vacancy
gradually drops. Lastly, demand in
the high street investment market has
picked up considerably. The yields
requested by investors looking to
acquire the best units in Valencia’s
prime area dropped in 2015, falling to
between 4.00% and 4.50%.

HIGH STREET RENTAL LEVELS IN VALENCIA
Euros per sqm/month

50

30
80

100

35

80
100

50
70

50

30

150
90

150

< 100 sqm
101-300 sqm
301-500 sqm
501-800 sqm

Jorge Juan
Source: CBRE.

42

Season 2015-2016 | CBRE

Colón

Don Juan de Austria

801-1,500 sqm

System Action - Calle Jorge Juan
(Valencia).

Palma de Mallorca

Retailers’ interest in Palma de Mallorca
did not waiver during the last economic
recession. During this period, rents
remained unchanged due to the
traditional supply-demand imbalance
for retail units in prime areas caused
by the rush of retailers wanting to enter
into the city when the retail moratorium
ended in 2010. The positive economic
outlook and growing retail sales mean
that operators are able take on higher
rents, evidenced by the slight rise in
rents registered for retail units on
Palma’s main high streets.
Several significant lettings were
completed on the main high streets
in 2015. The Paseo del Borne is the
high street that has seen the highest
level of tenant rotation in the city. New
operators such as Philipp Plein and
Pretty Ballerinas have debuted on
the street, other brands such as Hugo
Boss and Perfumerías Tin-Tin have
relocated, while the leading brand
of the Inditex Group Zara reopened
its new-look store in the street’s
emblematic old cinema building.
Avenida Jaime III and Calle Unión
maintain a high level of tenant rotation,
highlighting the upcoming opening of
Guess on Avenida Jaime III.
Calle San Miguel has also welcomed
new operators, and not just from the
fashion sector, ice-cream parlours such
as Häagen Dazs and Giovanni L
have also set up shop here.

Hugo Boss - Paseo del Borne
(Palma de Mallorca).

In terms of business segments, the
luxury sector is losing steam, whilst the
medium and premium segments are
gaining traction, accounting for 68%
of new openings with names such as
Tommy Hilfiger and Scotch and Soda
featuring among the newcomers.

HIGH STREET RENTAL LEVELS IN PALMA DE MALLORCA
Euros per sqm/month

50
85

60

125

40
75

95

40
60

140

70
175

120

< 100 sqm

85
120

101-300 sqm
301-500 sqm
501-800 sqm

San Miguel

Paseo del Borne

Jaime III

801-1,500 sqm

Source: CBRE.

High Street

43

opening of Vodafone in the same street
(in the former unit of Pilar Burgos), and
the relocation of Nespresso from Plaza
Nueva to calle Rioja and the store of
Brownie on calle Rioja.
The surge in activity and demand
has pushed rents up significantly,
maintaining the prime retail hub as
one of the ten most expensive streets
in Spain. Retailers that cannot afford
these rents have therefore looked
further afield to nearby streets such as
Calle Martín Villa, Cuna, San Pablo,
Plaza Nueva, O’Donnell, Sagasta and
Córdoba.

Durán Joyeros - Plaza Nueva
(Seville).

Malaga

Calle Marqués de Larios (Malaga).

Over the past few years, Malaga’s
prime area has continued to expand
and consolidate. Calle Marqués de
Larios remains the No. 1 choice for all
retailers. However, the prime shopping
area has slowly but surely expanded in
every direction possible. The majority of
retailers are aware of the high prices on
Larios and are therefore opting for streets
such as Calle Nueva or the initial stretch
of Calle Granada.
In 2015, Pronovias, Natura and Lot of
Colors opened stores on Calle Nueva
(the latter is still yet to be opened), while
Gisela moved into a new pitch on Calle
Granada. Mango, let its third retail unit

Euros per sqm/month

180

Seville

90
110

< 100 sqm
Marqués de Larios

Calle Nueva

Source: CBRE

44

Season 2015-2016 | CBRE

The old-town’s layout makes meeting
the demand for ever larger retail units
complicated, as this clearly contrasts with
the current available supply. This means
that a growing number of brands are
lying in wait for an opportunity given the
clear imbalance between supply and
demand, reflected in the extraordinarily
high prime rents.
The retail area of Puerto Banús continues
its love affair with luxury brands, and is
a magnificent location to showcase their
wears to both residents and tourists from
around the world: Asia, Eastern Europe,
Middle East and Nordic countries, not
forgetting British and Spanish tourists.

HIGH STREET RENTAL LEVELS IN MALAGA

195

on Calle Larios, allowing HE to move
into the new premises and Violeta to
move into the store previously occupied
by HE. On the same street, H&M has
already introduced the brands Cos
and & Other Stories, and Misako has
entered into the unit previously occupied
by Centro Moda.

101-300 sqm

Traditionally, Seville’s prime high street
area has been bordered by Calle
O’Donnell, Calle Tetuán and Calle
Velázquez in the initial stretch next to
Campana (the O-V-T hub), and Calle
Sierpes. However, over the last year,
this hub has extended to Calle Rioja
and Plaza Nueva, where the square
leads onto Calle Tetuán. Seville has

undergone a major transformation
thanks to the gradual pedestrianisation
of the city centre, the refurbishment of
a significant number of buildings and
the well-documented Boyer Law, losing
a large number of more traditional
businesses and welcoming many up
until now relatively unknown brands. In
2015, we would particularly note the
openings of Michael Kors and Parfois
on Calle Velázquez, Primor and MBT
on Calle Sierpes and Durán Joyeros
on Plaza Nueva. Furthermore, worth
mentioning are the new flagship stores
of Oysho and Stradivarius on calle
Tetuán (the latter having taken part
of the C&A unit) and the upcoming

Other brands have opted to open
their stores in the Nervión area, in the
Nervión Plaza shopping centre, or on
Calle Luis de Morales, close to the El
Corte Inglés department store, which
has pushed rents up in this area and
therefore made it a viable alternative
for many retailers.
Occupier pressure and the lack of
retail supply thanks to improved levels
of spending are expected to keep rents
high. Key-money has even started
to re-emerge in prime high street
areas, a format which had all but
disappeared.

HIGH STREET RENTAL LEVELS IN SEVILLE
Euros per sqm/month

50
60
75

25
40

120

50

85
150

110

25
60

35

35

75

90

60
110

< 100 sqm
101-300 sqm
301-500 sqm
501-800 sqm

O’DonnellCalle Sierpes
Velázquez-Tetuán Axis

Plaza Nueva

Calle Luis de
Morales

801-1,500 sqm

Source: CBRE

High Street

45

Zaragoza

In less than one year, Calle Alfonso,
one of the biggest tourist destinations
and one of the areas with the highest
footfall, has changed significantly.
A large number of national and
international retailers have occupied
units on the high street, to the point
where there is virtually no vacant space
in the section between Coso and Plaza
Sas.
In our opinion, due to the lack of
supply, and bearing in mind the high
level of interest from various different
brands to take up space on this street,
it is likely that the retail area will

expand; in fact it is possible that it will
spread to areas close to Coso, which is
also seeing new openings, particularly
the Puerta Cinegia Gastronómica
restaurant project.
Mango and Zara also opened flagship
stores in the city in 2015. In October
Mango extended its existing store on
Paseo de la Independencia, taking
up three additional adjoining retail
units in order to incorporate its Mango
Men brand. The fashion retailer had
already carried out an initial extension
in 2014 when it incorporated the
Violeta brand. Zara will also create
a 1,500 sqm mega store, as it will
now also let another three stores
that adjoin its existing store on Paseo
Damas store. This will increase the
brand’s visibility and provide it with
additional entrances. This opening will
undoubtedly help to breath new life
into a street, which just a few years
ago, was one of the best in the city.
Many new retailers opened stores on
Zaragoza’s high street in 2015, such
as Scalpers, Custo, Paco Martínez,
Mulaya and Druni. The latter opened
its first store in the Puerto Venecia
shopping centre, and after being
extremely well received by the city, the
firm subsequently decided to open its

Mulaya - Paseo Damas
(Zaragoza).

Euros per sqm/month

35
70

40

35
70

90

30
60

90

90
110

35

< 100 sqm

110

110

101-300 sqm
301-500 sqm
501-800 sqm

Pº de Independencia
Source: CBRE

46

Season 2015-2016 | CBRE

Paseo Damas

Calle Alfonso I

Bilbao

In recent years, Bilbao has moved onto
the radar of national and international
operators. For many of them, the
city has become the country’s third
or fourth target city and they do not
hesitate to take the time needed to find
the perfect store for their brand image.
Current demand from the most
renowned brands is focused on the
city’s prime area, comprising Gran Vía
and Ercilla, with many top tier brands
also having stores on Rodríguez Arias
and other neighbouring streets. The
pedestrianised section of Calle Ercilla
is a rising star, due to both its excellent
location next to the Plaza Moyúa and
the lack of stock on Bilbao’s main
street.
The standout opening in 2015 was
Massimo Dutti’s flagship store at
Gran Vía 28, which opened sporting
the brand’s new look. Oysho and
Swatch have occupied the store that
Massimo Dutti left empty at No. 31.
Other big news on Gran Vía in 2015
was the refurbishment of Cortefiel’s
store, the entry of Springfield and
the opening of Starbucks in El
Corte Inglés at Gran Vía 20. Other
noteworthy openings were those
of Guess (on Plaza Moyúa), Follie
Follie and Julia Perfumeries (on
Calle Ercilla) and Max&Co (on Calle
Rodríguez Arias, replacing Gucci).

HIGH STREET RENTAL LEVELS IN ZARAGOZA

40

second store six months later on Paseo
Damas. This letting reiterates our belief
that city centre retail and the Puerto
Venecia shopping centre complement
each other, offering synergies for some
retailers.

801-1,500 sqm

During the current year Sunglass Hut
already opened on Gran Vía (in the
former unit of Springfield) and there
will be future openings of Snipes (calle
Berástegui) and of New Balance
(calle Ercilla). With the announcement
of the upcoming Primark opening at

Massimo Dutti - Gran Vía de Don
Diego López de Haro (Bilbao).

Gran Vía 1, this already busy area is
expected to see even greater levels of
footfall drawn to the areas around the
Plaza Circular. This increase will have
a positive effect on the first stretch of
Bilbao’s Gran Vía.
In line with the trend at national
level, there has been a clear leaning
by fashion firms towards large store
formats in prime areas where they can
open flagship stores.

HIGH STREET RENTAL LEVELS IN BILBAO
Euros per sqm/month

110
140

80
110

160
125
190

140

< 100 sqm
101-300 sqm
301-500 sqm

Gran Via

Ercilla

501-800 sqm

Source: CBRE

High Street

47

New high street trends in
Madrid and Barcelona
Gran Vía:
FLAGSHIPS RULE THE HIGH STREET

Both the high street
and hotel sectors are
investing heavily in
Gran Vía, driving
the ever more visible
regeneration of the
area.

In just a few short years, Gran Vía has become one
of the fastest changing retail and real estate centres
in Madrid. The street has always been a point of
reference and prestige in the city, however, with
the end of the crisis, both the high street and hotel
sectors are investing heavily in the street, driving
an ever more visible regeneration of the area.
Developer and investor interest is equally high with
€1,100 million of real estate investment transacted
between 2014 and 2015.
Retailers have always been drawn to Gran Vía, but
given the prime stretch (between Calle Montera/
Calle Fuencarral and Plaza Callao) was so
consolidated and in demand very few deals were
signed every year. This situation has changed
recently, partly thanks to financial entities leaving
the area (allowing bank branches to be changed
to retail), and partly thanks to the refurbishment
of hotels and other out-dated properties where, in
many cases, retail components have been added.
Indeed, as CBRE has previously mentioned, a
number of landlords have been investing in their
properties in order to improve layouts, increase
retail space and adapt to the demands of large
national and international retailers. Both the size
and prestige of the properties on Gran Vía make
them perfect for use as flagship stores, and give
them the upper hand over properties on Calle
Preciados in this regard.
A few examples are C&A, which has its megastore
in a new residential building (number 48); H&M,
which is located in the former Avenida Cinema
building (number 37) and Oysho, which has
extended its store (number 31) by adding the

48

Season 2015-2016 | CBRE

Both the size and
prestige of the
properties on Gran
Vía make them
perfect for use as
flagship stores, and
give them the upper
hand over properties
on Calle Preciados.

Gran Vía (Madrid).

High Street

49

The type of retail
units between
Callao and Plaza
España make it the
stretch that would
best favour the
extension of the
prime area.

adjacent retail unit and creating a flagship store.
Without doubt the most talked-about megastore is
Primark, whose new five-storey flagship store at
Gran Vía 32 has already achieved record footfall
levels. Studies carried out by CBRE in December
2015 indicate that this stretch has even
greater footfall than Calle Preciados.
This type of project has
created heightened
Plaza de
interest from retailers
España
seeking space on the
busiest stretch of Gran Vía,
attracting retailers such as
Parfois and Tous (numbers
42 and 38) which opened
in autumn 2015, and Adidas
and Nyx (numbers 21 and 36)
which opened in spring 2016, as
well as the American burger chain
Five Guys (number 44), which plans
to open its first restaurant in Spain in
November 2016.

Plaza de
Mostenses

Calle
San Bernardo

74

La Sureña

La Cervecería
Estrella Galicia

68

Druni
Calle
Leganitos

The stretch between Callao and Plaza de
España has seen the fewest changes, with the
aforementioned entry of C&A by far the most
noteworthy transaction. 2015 saw the arrival of a
number of restaurants, such as Txapela and La
Cervecería Estrella Galicia (both at number 64)
improving the quality of the restaurant offer on
this part of the street. Druni and Ale-Hop took on
stores on this stretch in early 2016, at numbers 61
and 74 respectively, with the latter now operating
two stores on Gran Vía.
In our view, the type of retail units on this stretch
would favour the expansion of the prime area in
this direction, offering fashion retailers a greater
chance of finding suitable premises. For example,
the refurbishment project for the Rex Hotel at
number 43, which will create a 1,000 sqm retail
unit close to Callao. This, and other projects on
this stretch could drive an important change of this

Season 2015-2016 | CBRE

A walk down Gran Vía at any time on any given day confirms
how footfall has changed on this high street over the last few
months. The overwhelming success of recent changes to the
prime retail area has undoubtedly brought out the true glory of
Gran Vía.

Ale-Hop

Less prime stretches of Gran Vía have not
been left aside and these are also changing,
although they are not so oriented towards
fashion retail. The stretch closest to Calle Alcalá
has seen homeware stores such as Ale-Hop
and Muy Mucho take up space, along with new
hotels, restaurants and the Gran Vía Casino.
New Balance has opened a store at number
15, creating a potential synergy with the nearby
Adidas store.

50

section of Gran Vía. In the long term, it will also benefit from
the redevelopment of Plaza España and the refurbishment of
Edificio España.

61

64

Txapela

57

Calle del
Barco

Plaza
“de la Luna”

Teatro Lope
de vega

le

l
Ca

Calle
Valverde

lva

Si

Calle
Hortaleza

C&A

Calle

Silva

43

48

Hotel
Rex

Five
Guys
44

Benetton 41

Calle Jacometrezo
Plaza Santo
Domingo

Calle
Fuencarral

Plaza del
Callao

Lefties
Mango
H&M

Zara

Parfois

Tous Nyx

42

38
37

H&M

33

Oysho

Primark

36

32
31

Aristocrazy
Stradivarius
Casino The Good
Sfera Telefónica
30

29

27

Pull & Área Casa
Cortefiel
Bear Real del
Madrid Libro

Calle del
Carmen

28

Gran Vía
24

26

Calle del
Clavel

Burger
22

Ale-Hop

25

Bershka Calle

Montera

21

Adidas

16
15

New Balance
7

Muy Mucho

Plaza del
Carmen

Calle
de Alcalá

Calle
Preciados

Openings in 2015
Openings in 2016
Puerta
del Sol

High Street

51

Las Ramblas:
NEW RETAIL DESTINATION

Footfall on the
most retail-oriented
stretch of Las
Ramblas is exceeded
only by Portal del
Ángel. This, along
with the limited
amount of retail
high streets in
Barcelona has put it
firmly in a number
of major retailers’
sights and driven its
transformation.

Las Ramblas is undoubtedly one of the streets
most frequented by tourists in Barcelona. However,
despite its iconic location, it was never considered
a real shopping destination due to the type of
businesses present, with more than 50% centred
on the service industry and offering restaurants,
cafeterias, banks, foreign-exchange bureaus,
hotels, etc. We estimate that 8 of every 10 visitors
to this street are from outside of Barcelona; hence
the prominence of tourism related retail activity.
Indeed, the kilometre and a half that Las Ramblas
stretches between Plaza Catalunya and the sea is a
firm favourite among tourists. According to CBRE’s
periodic high street studies, footfall on the most
retail-oriented stretch of this street is exceeded only
by Portal del Ángel. This, along with the limited
amount of retail high streets in Barcelona has put
Las Ramblas firmly in a number of major retailers’
sights and driven its transformation.
The first property that kick-started the arrival of new
international fashion brands was the building which
used to be home to the SEPU shopping arcades
over 10 years ago. A full renovation paved the way
for a retail mix featuring restaurants and fashion,
with brands such as Nike (at number 120), which
last year doubled its retail space by connecting its
premises to the adjoining unit previously occupied
by Custo.
In 2008, H&M moved into Edificio Modelo (at
number 131, close to Plaza Catalunya), paving the
way for other major fashion retailers to also open
on Las Ramblas. Desigual soon followed suit,
opening a number of stores on this stretch on the
opposite side of the street.
2013 marked a turning point when Mango
bought the property at number 132 in order to
convert it into one of its Barcelona flagship stores,
occupying 2,500 sqm of a property that until then
had been certified with residential use. Once this
transaction was made public, retailer demand for
this street increased, with a number of brands such
as Friday’s Project and Double Agent (numbers
68 and 72) enticed by the retail transformation

52

Season 2015-2016 | CBRE

Las Ramblas (Barcelona).

High Street

53

of the street and high footfall. Even Real Madrid
(number 114) chose this street to open its first store
in Barcelona, while it is also worth noting that Gap
took 400 sqm in the Las Ramblas branch of El
Corte Inglés in order to showcase its brand. All of
these openings, as well as Flormar’s arrival, took
place in 2015.
Openings by Friday’s Project and Double Agent,
which although not leading brands, are particularly
noteworthy given they are located on the middle
stretch of the street. Until now, the shopping route
comprising Portaferrisa, Portal del Ángel and Plaza
Cataluña ended in the upper part of Las Ramblas,
favouring its status as a hot spot destination. The
mentioned transactions could move the shopping
towards the more touristic part of Las Ramblas.

The upper part of
Las Ramblas has
everything needed
to keep moving
towards a more
prime mass-market
offer. There is a lot of
retailer interest and
a strong investor
appetite.

The change in Las Ramblas was largely triggered
by market saturation on Portal del Ángel, where
there is no vacant space and the fact that Las
Ramblas has the same retail target audience.
In addition, landlords are becoming evermore
professional, In the opast they were rather unwilling
to refurbish properties, but are now no longer
simply seeking higher yields on properties, but also
wanting to attract more prestigious brands. This
type of retail regeneration would be very difficult
without landlords’ concern in this regard.
In short, Las Ramblas is in the process of a full
retail regeneration and, in our opinion, the upper
stretch has everything needed to continue moving
towards a more prime mass market offer. There
is a great deal of retailer interest and investor
appetite for this area: for instance, a hotel on this
stretch was recently acquired with the aim of being
converted into retail. We will certainly see more
deals like this in the medium term, as this high
street extends towards the seafront.

Passeig
De Gracia
Rambla
de Catalunya

Openings in 2015

Plaça de
Catalunya

Avinguda del
Portal de l’Angel
El Corte
Ingles

Carrer
Santa Anna

142

Carrer
de Pelai

Desigual
140

H&M

Springfield

131

138

Desigual

Casas

Carrer dels
Tallers

136

125

Pans&Company

132

123

Plaza de
Vincenç
Martorrell

Carrer
d’Elisabets

Carrer de
la Canuda

Mango

Carrefour
Market

Carrer de la
Portaferrisa

Uissos

113

Nike
120

Custo
Barcelona
Carrer del
Pintor Fortuny

Carrer de la
Cucurulla

Plaça Villa
de Madrid

109

Starbucks

Área
Real Madrid
114

Carrer del
Carme

Plaça San
Josep Oriol

Plaça
del Pi

Mercado
de la
Boqueria

Carrer de la
Boqueria
85

Flormar

Double
Agent
72

Carrer de
l’Hospital

68

Carrer
de Ferran

Friday’s
Project

Carrer de
San Pau

Plaça
Real

Liceo

54

Season 2015-2016 | CBRE

Private investors continue to dominate
the sector, however, as a result of the
availability of large-volume properties
and the lack of alternatives in other
European markets, international
insurance companies and institutional
investors have increased their presence.

Private investors continue to dominate
the sector, however, as a result of the
availability of large-volume properties
and the lack of alternatives in other
European markets, international
insurance companies and institutional
investors have increased their presence.
These investor groups have entered
into the Spanish market with a longterm mind-set and in search of stable
yields.

Puerta del Sol (Madrid)

Coinciding with
the flagship boom,
the sector has seen
a general surge in
the number of large
retail units being
sold.

HIGH STREET INVESTMENT

2015 was a very active year for high
street investment, doubling 2014’s
investment volume. In total, a recordbreaking figure of over €900 million
changed hands in 2015 in high street
transactions.
In Madrid, the acquisition of the
Primark building at Gran Vía 32 by
Pontegadea for €400 million was partly
responsible for this, accounting for
40% of the total investment volume.
However, coinciding with the flagship
store boom, the sector has seen a
general surge in the number of large
retail units being sold. Several sales
of large retail units were closed in
2015, especially in Madrid’s massmarket retail hub: in Calle Preciados/
Sol (Sfera, El Corte Inglés), Calle Gran
Vía (numbers 32, 44, 60) and Calle
Fuencarral (16, 45). All these deals

notched up a combined investment
volume in excess of €20 million and
reaffirmed major investment funds’
interest in the high street sector.
In Barcelona high street investment
was not so intense in 2015, mainly
due to a lack of properties for sale. In
the prime area, most sales that took
place involved mixed-use buildings
with a retail component (Diagonal 490,
Torre Muñoz, Fontanella). However,
there were also some major deals
closed in other cities in Spain, such
as the H&M retail unit in Plaza Félix
Saénz in Málaga which was sold to
the investment fund Patrizia, and the
acquisition of the mixed-use building
occupied by Fnac in Calle Alameda
de Urquijo in Bilbao by Trajano Iberia,
both transactions being sold for a total
of more than €30 million.

HIGH STREET YIELDS IN EUROPEAN CITIES
% Prime Yields

7
6
5
4
3
2
1

Q1
2003

Q1
2004
Paris

Q1
2005

Q1
2006

Munich

Q1
2008
Milan

Q1
2009

Q1
2010

Q1
2011

Barcelona

Q1
2013
Madrid

Q1
2014

Q1
2015

Q1
2016

London

Source: CBRE.

56

Season 2015-2016 | CBRE

High Street

57

Given the lack of
product in prime
locations, secondary
areas adjacent to
them are emerging
as good investment
alternatives, with
slightly more
attractive yields.
However, the
products with the
biggest opportunities
in terms of capital
gains are assets
in need of being
renovated.

Due to the strong demand and the lack
of available product, prime yields in
Madrid and Barcelona dropped sharply
after the summer, even falling to
levels of around 3.50% for the best
assets in both cities. Although this is
a historically low level, it is still slightly
higher than current yields in the major
European markets such as London and
Paris.
Given the lack of product in prime
locations, secondary areas adjacent to
them are emerging as good
investment alternatives, with slightly
more attractive yields that catch
the attention of investors. However,
the product offering the biggest
opportunities in terms of capital gains
are assets in need of being fully
reformed. Although building extensions
or conversions can be long processes
(given the need to obtain permits
or change of use licenses), they are
interesting options given the high
demand for larger stores and the high
returns that they generate once let. In
2015 many deals of this nature were
closed in Madrid; Axa, for example,
acquired the Rex cinema at Gran Vía,
43 (to convert it into a hotel and retail
unit; and Kennedy Wilson bought
properties in Puerta del Sol (on the
corner with Preciados) to convert them
into retail.
As in 2015, high levels of investment
activity are being registered in 2016
both in Madrid and Barcelona. Several
prime assets changed hands in the
first quarter. Although it seems that the
sales processes are taking longer to be
completed, demand remains upbeat,
with new investors such as Hines and
CBRE Global Investors making their
debut in the high street sector.
Prime yields have remained stable
so far in 2016, following the heavy
compression seen last year.

MAIN HIGH STREET INVESTMENT TRANSACTIONS IN
MADRID AND BARCELONA 2015 AND Q1 2016
Quarter Asset

Portal de l’Àngel Barcelona.

Location

GLA (sqm)

Purchaser

31,000

Pontegadea

Q1-15

Primark Building

Gran Vía, 32 - Madrid

Q2-15

Several retail units

Puerta del Sol, 9 - Madrid

7,500

Kennedy Wilson

Q2-15

Cine Proyecciones

Fuencarral, 136 - Madrid

6,300

Schroder Real Estate

Q2-15

Sfera retail unit

Preciados, 4 - Madrid

2,600

IVG Inmobilien

Q3-15

Mercado de Fuencarral

Fuencarral, 45 - Madrid

2,400

Activum

Q4-15

Bankia retail unit

Gran Vía, 44 - Madrid

Q4-15

Empty retail unit and upper floors Fuencarral, 16 - Madrid

1,600

Thor Equities

Q4-15

El Corte Inglés

Puerta del Sol, 11 - Madrid

1,300

Thor Equities

Q1-16

Adolfo Domínguez retail unit

Passeig de Gràcia, 32 - Barcelona

1,070

BMO Real Estate Partners

Q1-16

Prada retail unit

Passeig de Gràcia, 88 - Barcelona

1,500

Invesco

Q1-16

Desigual retail unit

Arcs, 10 - Barcelona

1,189

Hines

Q1-16

Calle Preciados retail unit (50%)

Preciados, 9 - Madrid

2,400

CBRE Global Investment Partners

Q1-16

Calle Serrano retail unit

Serrano, 7 - Madrid

Q1-16

Gran Vía retail unit

Gran Vía, 55 - Madrid

Q1-16

Kutxa bank retail unit

Puerta del Sol, 9 - Madrid

500

750
1,400
170

Tecnolandia (*)

AEW Europe
Saint Croix Holding
Kennedy Wilson

Source: CBRE. Not including transactions completed by private investors. (*) Subsequently sold to Hines.

58

Season 2015-2016 | CBRE

High Street

59

5
MAIN
SHOPPING
CENTRE
INDICATORS
As to be expected, the shopping centre segment is playing an active
part in the sector’s recovery. Forecasts for 2016 are positive, given
that we expect sales growth to continue as new development projects
start to reappear.

CBRE now manages 30 shopping
centres in Spain, with a total GLA
of over 1.3 million square metres
(data as at end 2015). This portfolio
puts us in a privileged position in
terms of monitoring the retail sector’s
performance via the main aggregate
operating indicators for the shopping
centres under management (KPI’s - Key
Performance Indicators).

jump in turnover: in 2015, the sales of
shopping centres included in the CBRE
Index rose by 5.5% on average (1), with
positive monthly variations of between
1% and 12%, the latter recorded in July
and October. This growth trend was
maintained during the first few months
of 2016, registering a more moderate
growth of between 2% and 5%.

For this report, other Grade-A
shopping centres have been added to
the selection of 30 to form a sample
known as the ‘CBRE Index’, comprising
34 shopping centres and a total GLA of
1.67 million sqm.

Shopping centre footfall climbed 4.1%
on average in 2015 in the centres
included in the CBRE Index, whereas
according to the index compiled by
the company Experian Footfall (which
uses a broader and more diverse
sample), footfall was up just 1.5%. This
continues to be the case in 2016, with
similar increases being registered to
those seen last year. Hence, the upturn
in the number of shopping centre visits
was moderate compared to the jump
registered in sales. This difference can
be explained by the fact that during the
economic crisis consumers adjusted
their spending, but not their habits of
visiting shopping centres.

FOOTFALL

IMPROVING RESULTS
ACROSS THE BOARD
Economic growth, combined with
rising consumption in 2015 strongly
buoyed shopping centre performance,
which improved considerably in terms
of footfall and sales among other
indicators. The key improvement was the

SHOPPING CENTRE FOOTFALL
8
6
4
2
0
-2
-4
-6
2010

2011
CBRE Index

2012

2013

2014

2015

2016

Footfall Index

Source: CBRE
1  Y-o-Y

60

Season 2015-2016 | CBRE

variation.

Main shopping centre indicators

61

All shopping centres
analysed saw sales
grow in 2015, up on
average by+5.5%.

SALES

time since the onset of the economic
crisis by between 5% and 10% on
average.

one or more new anchor tenants
recorded better results, a trend which
has also held true for the first few
months of 2016. On the whole, sales
eased slightly during the first four
months of 2016, with the shopping
centres included in the CBRE Index
seeing sales grow 3.6% on average.
However, in some centres sales growth
has started to falter and in some cases
even start to fall.

At national level, retail sales were up
by 3.0% (2*) y-o-y in 2015, however
not all autonomous regions performed
at this level, with some such as
Extremadura, Asturias and Murcia
recording a weaker recovery in their
economies and retail sales. During the
first few months of 2016, retail sales
rose slightly (registering 3.9% to April),
and there was a smaller gap between
autonomous regions.

SALES BY SECTOR

Sales of every business sector in the
CBRE Index have increased in 2016,
reaffirming the results registered in
2015 when all sectors grew by over
4.0%. The sectors that outperformed
the rest in 2015 were Leisure (9.4%),
Services (7.7%) and Specialised
Stores (7.4%). The sales increase was
relatively uniform across the board,
with some operators booking doubledigit growth. Few operators did not
benefit from the positive economic
environment and in the case of those
who failed to do so, brand restructuring
or the loss of positioning versus the
competition was the reason why.

Given that shopping centre sales
growth outstrips footfall growth,
per visitor spend rose considerably,
jumping from €10.5 / visitor in 2014
to €11.7 /visitor in 2015. The retailer
effort rate also improved and stands at
an average of 11.4% adding together
rents and expenses, compared with the
13.4% rate at the end of 2014.

The shopping centre sector booked
very good sales results in 2015: all
shopping centres included in the CBRE
Index saw their sales climb in 2015,
up on average by 5.5%. Operators in
prime shopping centres, both inner
and outer city ones, as well as more
secondary centres and retail parks,
recorded a substantial improvement.
As we mentioned last year, shopping
centres that completed some form of
refurbishment project or that welcomed

Fashion and Accessories Sector

On the back of the upbeat results and
demand for retail units, in 2015 prime
shopping centre rents rose for the first

The Fashion and Accessories sector
closed 2015 with CBRE Index sales

up 4.6%. September and October
were the best-performing months,
registering hikes of 14% and 15%
respectively. Fashion sales in the CBRE
portfolio were in line with the figures
published by the Acotex Fashion
Retail Index, which ended the year
with a 5.1% rise, marking the 16th
consecutive month of increases. Major
operators such as Grupo Inditex,
Grupo Cortefiel, Sfera and H&M
booked very satisfying results in 2015,
with sales growth in the region of 6%.
November’s figures were particularly
noteworthy, a month that included
Black Friday and Cyber Monday and
which recorded a 6.2% rise in the
Fashion Retail Index, but a -3.6%
drop in sales in the centres analysed.
However, these figures reflect the
whole of November and according
to the company Experian, footfall for
the weekend in question rose 10.7%
versus 2014, and surged 17.9% on
Black Friday.

As a result of the
upbeat results and
the demand for
retail units, prime
rents rose between
5% and 10% in
2015.

SHOPPING CENTRE SALES - CBRE INDEX
8%

15%

6%

10%

4%
5%

2%
0%

0%

-2%

-5%

-4%
-10%

-15%

-6%

jan
10

2  INE

Figures: monthly and
annual variation corrected
for seasonal and calendar
effects and excl. petrol
stations.

62

Season 2015-2016 | CBRE

mar
10

may
10

jul
10

Annual Variation (%)

sep
10

nov
10

jan
11

mar
11

may
11

jul
11

sep
11

nov
11

jan
12

mar
12

may
12

jul
12

sep
12

nov
12

jan
13

mar
13

may
13

jul
13

sep
13

nov
13

jan
14

mar
14

may
14

jul
14

sep
14

nov
14

jan
15

mar
15

may
15

jul
15

sep
15

nov
15

jan
16

apr
16

-8%

Monthly Variation

Source: CBRE

Main shopping centre indicators

63

Given that shopping centre sales growth
outstrips footfall growth, the amount spent per
visitor rose considerably, jumping from €10.5 /
visitor in 2014 to €11.7 /visitor in 2015.

Leisure and Cinema Sector

Following some tough years, the
Leisure sector is performing very
well, with the cinema and bowling
alley businesses particularly standing
out, although all sub-sectors have
registered very good results. In this
segment sales grew 9.4% in 2015 in
the sample analysed, a trend that has
been maintained in 2016, up 8% to
date.

SHOPPING CENTRE SALES BY SECTOR - CBRE INDEX

15%

10%

5%

0%

In 2016, growth in the Fashion and
Accessories sector eased slightly,
up +1.7% due to flatter fashion
sales which were up around just
1%. Accessories on the other hand,
maintained the upward trend started in
2015, growing over 5%.

Food Sector

The Food sector also obtained positive
results in 2015, although its progress
was very moderate, 0.6% at national
level according to INE. This sector
proved the most resilient during the
economic crisis, but is also the one that
is now making the slowest progress,
up 0.9% so far this year. Moreover, the
increases seen in hypermarkets’ figures
in 2015 had less to do with Food and
more to do with homeware, a business
that is booming.

3  Variation

compared to
the same month of the
previous year

64

In terms of the Food sector,
hypermarkets have lost significant
market share over the last 15-20
years, going from 33% of sales at the
end of the 90s to around 15% today.
This is a mature sector where there
are few opportunities for growth and,
bearing in mind the current boom in
local supermarkets, the downward
spiral does not look set to end soon.
To the detriment of hypermarkets,
supermarkets have made a significant
mark in shopping centres, illustrated
by the fact that since 2005 half of Food
anchor tenants were supermarkets with
a maximum GLA of 3,000 sqm.

Season 2015-2016 | CBRE

The cinema sector saw tentative growth
in 2014 and a sharp improvement in
2015, ending the year with 10% sales
growth and a turnover of €571 million
at national level. In CBRE’s portfolio
of shopping centres, sales climbed
11.7% and the number of cinemagoers
rose by 9.9%. Two Cinema Festivals
that were held did not perform as
well as expected, although the highprofile premiering films can explain the
fluctuating number of viewers (from
-23% in April to + 83.7% in July).3

OCCUPANCY AND RESULTS

Thanks to operators’ improved
results and to the reactivation of
their expansion plans, vacancy in the
whole portfolio has dropped from
14% in 2013 at the worst point of
the economic crisis, to the current 8%
(based on GLA).

-5%

-10%

-15%

-20%

-25%

2011

2012

2013

2014

2015

YTD 2016

Accessories

Fashion

Food & Beverage

Home

Electronics

Leisure

Restaurants

Services

Source: CBRE

This improvement is evident in tenants’
financial results, who have seen nonrecoverable costs and temporary rental
discounts decrease, while their rents
have increased.
Recent developments and the
positive economic outlook open up
an opportunity for shopping centres
to stabilise and implement strategic
plans that could not be pursued during
the economic crisis. Going forward,
shopping centres will have to continue
developing their tenant mix and
improving the services they offer in
order to cater for reviving consumption
levels and more digitalised and
interactive customers.

Main shopping centre indicators

65

EUROPEAN BACKDROP

6
SHOPPING
CENTRE
INVESTMENT
With the change in cycle that began at the end of 2013 and after
several years of very low levels of activity, it is not surprising that
so many investment deals were closed in the sector over the last
two years. As a result, many shopping centres are now in the hands
of international investors and Socimis. In 2016, we expect investor
activity to ease slightly, which is almost inevitable after such a
busy period.

2015 outside of their domestic market.
Over the last few years, American
and Asian investors have started to
tap the retail sector, however they are
still much less present than they are
in other real estate segments such as
offices and logistics.

In Europe, a record total of €€68.9
billion were transacted. Investment in
the EMEA real estate sector swelled
incredibly last year on the back of
low interest rates and the high levels
of liquidity available in the financial
markets. In addition, given that the
real estate cycle in Europe slightly lags
the USA, it is even more attractive for
investors.

In terms of Spain, total investment in
the retail segment1 spiked to an alltime record of €3.6 billion in 2015, in
line with the general retail investment
trend in Europe.

Major European funds dominate the
shopping centre investment market
in Europe, above all REITs, equivalent
to the Spanish Socimis. Many REIT’s
only operate in the retail sector; hence
they own a substantial percentage of
European shopping centres, especially
large centres. INTU Properties,
Klépierre, Hammerson and UnibailRodamco are some of the top retail
specialist property companies, all of
which purchased assets in Europe in

In 2015 a recordbreaking 33
shopping centres
and retail parks
were sold, with
the investment
volume in the sector
reaching a historic
€2.65 billion euros.

In fact, despite the record investment
levels in Spain, other European countries
recorded even higher investment
volumes in 2015. The graphics show
how the United Kingdom, Germany
and the Nordic countries stole the show
in terms of retail investment in Europe
in 2015, as they usually do along with
France, although France took a back
seat in 2015.

BREAKDOWN OF RETAIL INVESTMENT IN
EUROPE BY COUNTRY/AREA
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%

2010

2011

2012

2013

2014

United Kingdom

Germany

Nordic Countries

France

Spain

Italy

Central Europe

Other

2015
Benelux Countries
1  Retail

sector as a whole:
Investment volume
including the high street
segment.

Source: CBRE EMEA

66

Season 2015-2016 | CBRE

Shopping centre investment

67

QUARTERLY INVESTMENT IN RETAIL IN
EUROPE BY COUNTRY/AREA
Millions of euros

7,000
6,000
5,000
4,000
3,000
2,000
1,000
0

United
Kingdom

Germany

2014 | Q3

Nordic
Countries

2014 | Q4

France

Benelux
Countries

2015 | Q1

Spain

2015 | Q2

Italy

Central
Europe

2015 | Q3

Other

2015 | Q4

Source: CBRE EMEA

Socimis, headed by
MERLIN Properties
and Lar España,
stole the show in
2015.

SHOPPING CENTRE INVESTMENT
IN SPAIN BEATS ALL
EXPECTATIONS IN 2015

If 2014 was already a record year in
shopping centre investment in Spain,
2015 wiped the floor with a total of 33
deals closed. As a result, investment
volumes for the shopping centre and
retail park sector also reached alltime highs of almost €2.65 billion.
Both 2014 and 2015 were the bestperforming years on-record in terms of
investment, beating even the real estate
boom years.
However, the high level of activity
during the first three quarters of 2015
almost ran the investment product
pipeline dry, causing the rate of sales
in the last quarter of 2015 to ease. In
fact, the last quarter only accounted for
9% of total investment.

2  Retail

investment excluding
the high street segment.

68

2015 was characterised by strong
investor appetite for all types of retail
product: prime, secondary and local
shopping centres, as well as retail
parks, big box stores and supermarket
portfolios.

Season 2015-2016 | CBRE

There was only availability of large
prime products in the first half of the
year when INTU Properties and CPPIB
acquired Puerto Venecia via a joint
venture and when Klépierre became
the new owner of Plenilunio. In both
cases, the assets moved into the hands
of investment funds who have a very
long-term vision.
Moreover, in prime products, investors
focused on leading shopping centres
with growth potential in provincial
capital cities. Interest in retail parks
also revived in 2015, with a dozen
deals completed, the majority in
secondary parks, among which the
Megapark Barakaldo acquisition was
the standout transaction.

El Rosal Shopping
Centre - Ponferrada

INVESTMENT IN SHOPPING CENTRES AND BIG BOX
RETAIL PARKS IN SPAIN
Millions of euros

3,000
2,646

2,472

2,500

2,000

2,399
2,000

1,868

1,500

1,366

1,000

778

925

857

515

500

326

171

314

0

In addition, several supermarket
portfolio transactions were completed,
the most noteworthy being the sales of
33 Caprabo supermarkets to MERLIN
Properties and 16 Día/Carrefour
supermarkets to Kennedy Wilson.
2015 saw a diverse retail investor
profile, with Socimis stealing the

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016f

Source: CBRE 2016: forecast

show, and Lar España and MERLIN
Properties emerging as the stars of
the show. Lar España acquired five
income-producing retail assets, as well
as a development project in Sagunto

(Valencia). MERLIN Properties was also
very active and diversified its retail
portfolio: acquiring 50% of Arturo
Soria Plaza in Madrid, investing in a
supermarket portfolio and acquiring

Shopping centre investment

69

RANKING OF KEY SHOPPING CENTRE AND RETAIL PARK
INVESTORS 2015 VS. 2014
Investment in millions of euros
2014

Millions (€)

2015

Millions (€)

Carrefour Property

390

Merlin Properties

492

Merlin Properties

262

Klépierre

375

Northwood Investors

260

Lar España

340

CBRE Global Investors

240

Intu Properties

225

TIAA Henderson

232

CPPIB

225

Lar España

190

Kennedy Wilson

159

Grupo Lar + Baupost + Greenoak

160

CBRE Global Investors

119

Source: CBRE. Not including high street investment

Banks’ financing terms and conditions
improved considerably during 2015.
The loan-to-value moved to over 60%
for prime assets and to around 5060% for secondary assets, depending
on their characteristics. Apart from
consolidated income-producing assets,
financing higher-risk transactions such
as future shopping centre projects have
also come back to the table.

INVESTMENT VOLUME BY INVESTOR TYPE - SHOPPING
CENTRES AND RETAIL PARKS
% of total volume

22%

33%

16%
23%

17%

10%
38%

23%
11%

7%
2014
Institutional

Fund
manager

2015
Private Equity/
Opportunistic Fund

Retail
Specialist

Socimi

Source: CBRE

the entire Testa portfolio, which
included shopping centres and high
street retail units.
As well as Socimis, fund managers
such as CBRE Global Investors, Lasalle
and UBS were also active, acquiring
all types of shopping centres for third
parties, which include a combination
of private investors and newly-created
funds.

Yields for prime shopping centres
have readjusted quickly over recent
years, reaching 5.00% in 2015 (net
yield). Investors still have their sights
firmly fixed on acquiring the few prime
assets that come to market. In 2016
investors maintain their maximum
interest in acquiring the scarce prime
assets that are marketed. Together with
the extremely low interest rates and
capital cost levels, this is provoking
further yield compression. Although
no transactional evidence of prime
centres is available yet this year, it can
be said that prime assets with a clear
repositioning potential and robust rental
growth prospects can significantly beat
net initial yield levels of 5.0%
Secondary shopping centre yields also
adjusted throughout 2015 and assets
located in secondary cities (but only
those that were dominant centres in their
catchment areas), sold at yields in the
region of 6.50%. Yields for retail parks

Ribera del Xúquer Shopping Centre Carcaixent (Valencia).

Plenilunio Shopping
Centre - Madrid.

MAIN TRANSACTIONS IN SHOPPING CENTRES AND RETAIL PARKS 2015 AND Q1 2016
Quarter Shopping Centre

Town

Asset type

Q1-15

Zaragoza

Shopping centre
and retail park
Shopping centre

Puerto Venecia

Total
(sqm)
206,900 sqm

Purchaser

Vendor

Intu Properties (50%) /
CPPIB (50%)

Orion Capital

Q1-15

Plenilunio

Madrid

Q1-15

Airesur

Castilleja de la Cuesta Shopping centre

42,000 sqm CBRE Global Investors Grupo Lar

Q2-15

Rivas Futura

Rivas-Vaciamadrid

55,000 sqm Crédit Suisse

Retail park

70,000 sqm Klépierre

Orion Capital
Lone Star

Q2-15

Zielo

Pozuelo

Shopping centre

15,500 sqm UBS

Hines

Q2-15

Plaza Éboli

Pinto

Shopping centre

31,300 sqm HIG Capital

Doughty Hanson

Q2-15

As Termas

Lugo

Shopping centre

46,500 sqm Lar España

Adia

Q2-15

Espacio León

León

Shopping centre

36,600 sqm Blackstone

CGI

Q3-15

Miramadrid

Paracuellos del Jarama Shopping centre

Q3-15

Vista Alegre

Zamora

Retail park

7,900 sqm Meridia Capital
15,950 sqm UBS

HI Real Estate (Hercesa)
KKR

Q3-15

Ribera del Xúquer

Carcaixent

Shopping centre

33,300 sqm CBRE Global Investors UBS

Q3- 5

Parque Ceuta

Ceuta

Shopping centre

14,400 sqm Hemisferio
14,900 sqm MDSR Investments

HIG Capital

Q3-15

Connecta Córdoba

Córdoba

Retail park

Q3-15

Montecarmelo

Madrid

Shopping centre

Q3-15

Dolce Vita Odeón

Ferrol

Shopping centre

26,100 sqm

Q3-15

Sevilla Factory

Dos Hermanas

Factory outlet
centre

15,900 sqm Greenoak

Unibail-Rodamco

Q3-15

El Manar

Massalfassar

Retail park

23,700 sqm HMC

Pradera

Q3-15

El Rosal

Ponferrada

Shopping centre

50,900 sqm Lar España

Doughty Hanson

Barakaldo

Retail park and
outlet village

127,800 sqm Lar España

Perella Weinberg

Q3-15

Megapark

8,500 sqm New Winds Group
Patron Capital /
Eurofund Capital

n/a

Q3-15

Arturo Soria Plaza (50%) Madrid

Shopping centre

Q4-15

Moraleja Green

Alcobendas

Shopping centre

29,600 sqm Kennedy Wilson

Q4-15

Bilbondo

Basauri

Shopping centre

39,493 sqm

Q4-15

Bahía Azul

Málaga

Retail park

42,000 sqm Marathon

Q4-15

Heron City Barcelona

Barcelona

Shopping centre

36,358 sqm Activum

Azollarom

Q4-15
Q1-16
Q1-16
Q1-16
Q1-16

Zubiarte
Festival Park Shopping
Centre Mallorca
ABC Serrano Shopping
Centre (50%)
Portal de la Marina
Shopping Centre (41%)
Mercado de Campanar

8,190 sqm Merlin Properties

Alpha Pyrenees Trust
Invesco Real Estate

Lasalle Investment
Managers

Inmobiliaria del Coto
ING
CBRE Global Investors
BNP Paribas

Bilbao

Shopping centre

20,647 sqm Activum

CBRE Global Investors
/ Sonae

Marratxí (Mallorca)

Leisure park and
outlet village

31,900 sqm Via Outlets

Värde Partners

Madrid

Shopping centre

19,600 sqm

Ondara (Alicante)

Shopping centre

40,200 sqm Lar España

Eroski

Valencia

Shopping centre

13,900 sqm MDSR Investments

GMP

CBRE Global
Investment Partners

Zambal Spain

Source: CBRE. Total GLA of the Shopping Centre according to the Shopping Centre Directory.

70

Season 2015-2016 | CBRE

Shopping centre investment

71

According to our estimates, the total
investment volume in shopping centres
in 2016 may end up at around €2.0
billion, down on the figure recorded for
the last two years, but above forecasts
from the beginning of the year.

Megapark Retail Park –
Barakaldo

An important share of the investment
volume will be completed during H2
2016, in light of the more moderate
level of activity seen during the first half
of the year, due to the aforementioned
reasons. This said, the first half of
the year notched up some significant
deals such as the sales of the Gonuri
hypermarket portfolio and the l’Aljub,
Festival Park Mallorca shopping
centres, as well as the divestment of

Airesur Shopping Centre - Castilleja
de la Cuesta

PRIME YIELDS IN SHOPPING
CENTRES IN EUROPE

50% of the ABC Serrano shopping
centre.
In 2016, buyers continue to look at
all types of product, from prime and
leading shopping centres to secondary
and local ones, not forgetting retail
parks and big box stores. In this last
segment, several transactions have
been completed, the most notable
being Redevco’s acquisition of a
portfolio of retail parks belonging to
Bogaris. In fact, even leisure asset
transactions have made a comeback,
such as the sale of the cinema
complexes at Plaza Norte 2 and
Manoteras in Madrid.

2016 is so far being
a more active than
initially expected
year in investment
terms. 2016
investment volume
for the shopping
centre sector is
forecast to reach
€2.0 billion.

% Prime Yields

9
8
7
6
5
4
3
2
1
0

2000

2001
Paris

2002

2003

2004

Munich

2005

2006
Milan

2007

2008

2009

2010

Barcelona

2011
Madrid

2012

2013

2014

2015 2016 T2p

London

Source: CBRE. Net yield on NOI.

in Spain (average-sized and secondary
locations) stood at around 7.0%, based
on several transactions in 2015. Both
segments have seen a slight compression
in yields for secondary assets since then.

TRENDS 2016

The signs that the pipeline of assets
for sale was running dry at the end of
last year, pointed towards lower retail

72

Season 2015-2016 | CBRE

investment volumes in 2016. However,
given the current strong demand and
attractive prices, supply has begun to
increase again, with various shopping
centres and portfolios currently in the
process of being sold. Although the
economic and political uncertainty
is a concern for investors, it is not
significantly affecting investor activity in
the retail segment.

Zielo Shopping
Centre - Pozuelo

Shopping centre investment

73

GRADUAL UPTURN IN
SHOPPING CENTRE
DEVELOPMENT
Given that projects were put on hold
during the economic crisis, very few
new shopping centres opened during
the last two years. In 2014, only one
new centre opened (Marina Lanzarote
in Arrecife), whilst in 2015 this rose
to five, amounting to a total GLA of
115,000 sqm.
However, there is now renewed interest
in building shopping centres and the
number of development projects is
expected to rise going forward, both
in terms of reactivating projects that
were suspended during the crisis and
embarking on completely new projects.
On the one hand, more city centre
development projects are expected
(smaller-scale projects, focused on
market niches that are not yet catered
for), and on the other, the development
of out-of-town macro projects, which will
echo the format of Puerto Venecia and
offer new retail and leisure combinations.
SHOPPING CENTRES OPENED IN 2015
Centre
Siam Mall
Bandeira
La Fira
L’Epicentre
Abella

Location
Adeje
Vigo
Reus
Sagunto
Lugo

Total GLA (sqm)
30,486 sqm
8,535 sqm
28,642 sqm
16,500 sqm
31,000 sqm

Developer
Grupo Número 1
Odeón
Metrovacesa
Sagúncenter
Inversiones Abuín

2016 looks set to be a much more
active year than 2014 and 2015
in terms of openings, with between
300,000 and 400,000 sqm of new
GLA set to be added to the current
market stock via new openings and
extensions. The most important
shopping centre openings will be the
Nevada complex in Armilla (Granada),
where Leroy Merlin has already opened
to the public and the FAN Mallorca
Shopping Centre in Coll d’en Rabassa
(Mallorca).
There are also several retails parks
among the forecast new openings,
such as Alfafar Parc and El Lucero in
Alcorcón in Madrid, where IKEA is set
to relocate from Parque Oeste.
Beyond 2016, a gradual increase in
shopping centre construction and new
openings is expected. During recent
months, new projects have appeared
such as Finestrelles (Esplugues de
Llobregat), Open Sky (Torrejón de
Ardoz), etc., which are on top of the
existing pipeline.
In addition, out of the recently
announced projects, some of the
most anticipated developments are
Torrecárdenas in Almería, Plaza Río
2 in Madrid, Tamaraceite Sur in Las
Palmas and the supra regional retail
and leisure schemes being developed
at several locations across Spain by
INTU Properties and Eurofund.

MAIN PROJECTS IN PIPELINE, IN CHRONOLOGICAL
ORDER BY OPENING DATE
New Projects
SBA Total (m2)

Promotor

Proyecto

Localidad

Trocadero

Los Llanos de Aridane (Tenerife)

10,000 sqm Trocadero

Galeón Outlet

Adeje (Tenerife)

11,000 sqm SDA

The Style Outlets

Viladecans

26,500 sqm Neinver

Sambil Outlet

Leganés

42,123 sqm Grupo Sambil

El Lucero

Alcorcón

50,000 sqm Various

Nevada

Armilla

Jaén Plaza

Jaén

22,000 sqm Grupo Alvores

Cruce de Caminos

Sagunto

45,000 sqm Lar España

Reino de León

León

23,141 sqm Bogaris

Plaza Río 2

Madrid

39,000 sqm LSGIE

Tamaraceite Sur

Las Palmas

80,000 sqm Yudaya

Torrecárdenas

Almería

61,452 sqm Bogaris

Parque Evolución

Burgos

23,000 sqm Inbisa

Finestrelles

Esplugues de Llobregat

45,000 sqm Equilis

Open Sky

Torrejón de Ardoz

87,000 sqm Compagnie de Phalsbourg

Intu Costa del Sol

Torremolinos

Palmas Altas

Seville

120,000 sqm General de Galerías Comerciales

200,000 sqm Intu Eurofund
60,000 sqm Lar España

Extensions
La Sierra

Cordoba

8,500 sqm Pradera

FAN Mallorca Shopping

Coll d’en Rabassa

45,000 sqm Carrefour Property

Alfafar Parc

Alfafar Park

50,000 sqm Agrupación de Interés Urbanistico

La Dehesa

Alcalá de Henares

13,000 sqm Immochan

Gloriès

Barcelona

15,000 sqm Unibail-Rodamco

Designer Outlet Malaga

Malaga

17,000 sqm McArthur Glenn

Source: AECC/CBRE
Estimated opening dates, according to information provided by developers.

Source: AECC/CBRE

Plaza Río 2 Shopping
Centre - Madrid.

74

Season 2015-2016 | CBRE

FAN Mallorca Shopping Shopping
Centre - Coll d’En Rabassa.

Nevada Shopping Centre –
Armilla (Granada)

Shopping centre investment

75

7
SHOPPING
CENTRE
TRENDS
With several shopping centres changing hands and the gradual
increase in competition, property owners are faced with the challenge
of optimising their assets to the maximum and setting themselves
apart from the rest. Active and comprehensive management of
shopping centres is fundamental in order to achieve this. In this
sense, taking advantage of the benefits offered by new technology
and predicting consumer habits will be key to ensuring a shopping
centre’s success. We now turn to Big Data, exploring its potential
and analysing the new challenges facing the Restaurant sector in
shopping centres.

CONVERTING BIG DATA
INTO A LA CARTE MARKETING
One of the main challenges of future
shopping centre management will be
incorporating Big Data into the decisionmaking process. Compared with 10
years ago, there is now much more
data at our fingertips thanks to the ongoing digitalisation and automisation of
the world, with technological advances
now allowing us to reach targeted
conclusions from major data inflow.
For the retail sector more specifically,
data regarding shopping habits and
consumers’ movements are the most
interesting. Cross analysing Big Data
with the information generated by
shopping centres opens up a whole new
world of opportunities, firstly in terms of
studying habits and secondly in terms
of implementing marketing action plans
for customers. In fact, the opportunities

76

Season 2015-2016 | CBRE

provided by Big Data are endless, but
the real challenge is not how to obtain
Big Data itself, but rather how to convert
it into Small Data and use it on a local
level.
Big Data providers are mostly major
global corporations from the digital
world whose business is related to the
movement of people:
• Telephone companies such as
Telefónica and Vodafone (as well as
manufacturers such as Samsung)
specialise in mobility and smartphone
data.
• Banks and credit card operators
(Visa, Mastercard) manage data from
electronic payments made by their
clients, whilst the POS used in shops
are also a vast source of information.
• Although they do not sell Big Data,

Shopping centre trends

77

THE FUTURE OF
RESTAURANTS IN
SHOPPING CENTRES

The real challenge is not how to obtain Big Data
itself, but rather how to convert it into Small Data
and use it at local level.

During the economic crisis in Spain, the
Restaurants sector veered towards lowcost formats, especially in shopping
centres. Offering affordable food (for
example via buffet restaurants) was the
only way to remain competitive with a
public that had little money to spend
on leisure. Meanwhile, in western
Europe restaurant trends went down
the opposite route, with the public
placing increasing importance on food
& beverages and demanding greater
quality and variety. There are examples
of shopping centres where innovative
restaurants are a real anchor, such as
Trinity Leeds in the north of England.

leading internet companies such
as Google, Amazon and Facebook
can access an immense amount of
internet surfing data, and they are
also able to link this information with
people’s physical movements.
Big Data services remain in their
infancy and still require on-going
improvements in the filtering and
correction of data. Moreover, in Spain
there is no legislation regarding the
marketing of Big Data and therefore
it is not clear whether the services
that it can offer will be maintained
going forward. The moral concerns
arising from the circulation of people’s
personal data could result in legislation
being put into place to restrict its use,
something that has already happened
in Portugal. Thus, the use of Big Data
is still a very grey area that must be
clarified over time.

CBRE has
introduced a mobile
app in the shopping
centres it manages
that shoppers
can download to
complete a full
analysis of their visit
and hence improve
the integration
of off and on-line
communication with
the clients.

78

Shopping centres generate a
substantial amount of anonymous
data themselves in terms of footfall,
store sales, analysis of marketing
campaigns, etc. There are now also
digital apps that gather information
from shoppers, with their consent, that
can then be cross analysed with the
data usually used to manage shopping
centres.
For example, CBRE has introduced an
app in half of the shopping centres
it manages, which shoppers can
download to receive information
about the shopping centre and any
promotions available. In exchange,
the app registers the movements of the
shoppers in the centre and their online movements via the centre’s Wi-Fi
networks.

Season 2015-2016 | CBRE

A survey carried out by CBRE highlights
the role that restaurants play in
the shopping experience: 52% of
Spanish participants stated that food
& beverages are a very important
factor to consider when choosing
which shopping centre to visit. The
participants also valued new formats of
restaurants, giving a special mention
to innovative concepts, healthy
and organic food and independent
restaurants.
This information is carefully used
in shopping centre management to
develop a targeted service and actively
influence shoppers’ visits. The system
allows a complete analysis of shoppers
visits and also helps to improve
the integration of off and on-line
communication with customers. The
next step will be to include retailers in
the app, which will provide shoppers
with an even more personalised service
and reinforce the strengths and USPs of
each shopping centre.
Despite the existing uncertainty
hanging over Big Data, its use and
analysis will undoubtedly be a key tool
in the retail sector, especially when
it comes to offering the customer a
value-added service.

Making food & beverages a focal
point can extend the time spent by
shoppers in a centre and even attract
clients that visit the centre just to go
to a restaurant. However, not all
shopping centres are suitable for
quality restaurants and the success of
gourmet markets in city centres does
not guarantee that this formula will
work in shopping centres. A priori,
food markets could be more difficult
to implement in areas with mediumlow purchasing power, which is the
target audience of the lion’s share of
shopping centres.
In centres where they can be opened,
quality and variety must be the prime
goals given the demanding nature of
the public and the wide range of choice
expected. A welcoming environment

“Trinity Kitchen” food court
in Trinity Leeds shopping
centre (United Kingdom).

is one of the keys to achieving a good
restaurant service, with traditional food
courts not usually being the ideal
location for higher quality restaurants.
Creating several well-selected smaller
restaurant areas around the shopping
centre is considered to be a more
inviting option. Although this requires
greater investment from the owner, it
makes for an improved gastronomic
experience for the diners.
Bearing in mind that the current
restaurant offering in shopping centres
is dominated by low-cost formats,
the economic recovery is likely to
lead to a more diversified, higher
quality restaurant mix, in tandem
with a possible casual dining trend.
In the survey carried out by CBRE, the
Spanish participants indicate that the
relationship between quality and price
is one of the aspects where they see
the greatest room for improvement
and where future shopping centre
restaurants can find opportunities.

Shopping centre trends

79

FOOD & BEVERAGE TRENDS SURVEY
When choosing a shopping centre, what do you consider the most important factors?

72%

68%

A good
location

The presence
of specific
retailers

53%

52%

The general
shopping
experience

63%

The right mix
of shops and
services

39%

The Food &
Beverage offer

24%

The leisure
offer

The level of
services for
children

What aspects of the Food & Beverage offer should be improved in your shopping centre?
Value for money

58%

Quality of food

48%

Quality of service

38%

Speed of service

35%

Variety of menu options

33%

More comfortable tables and chairs

27%

Wi-Fi access

27%

Quality of drinks

19%

Entertainment options for children

19%

Charging points for electrical devices

18%

Ambience

15%

Renovated stores

13%

Heating or air conditioning
Lighting
None of the aforementioned

Source: CBRE EMEA. Survey conducted among Spanish shopping centre visitors.

80

Season 2015-2016 | CBRE

11%
9%
6%

For further information,
please contact:
Alex Barbany

National Director Retail, CBRE Spain
alex.barbany@cbre.com
+34 934 447 711

Lola Martínez Brioso

Research Director, CBRE Spain
lola.martinez@cbre.com
+34 915 14 39 41

Erik Jan Buikema

Senior Retail Analyst
Research Department, CBRE Spain
erikjan.buikema@cbre.com
+34 915 143 817

cbre.es


Documentos relacionados


Documento PDF season 2015 2016 cbre retail spain
Documento PDF gesvalt informe2016
Documento PDF dossiercallesonoraeng
Documento PDF play store faq superpaquito
Documento PDF how to save money in online shopping with daily deals and coupons
Documento PDF terminos y condiciones campa a 2017 1


Palabras claves relacionadas