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Market report

Spain retail

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Hardly more than 160,000 sq m of GLA came onto the market in 2013, which is 60% less than the same figure in 2012, which was a year when various large and very large projects were delivered.

The amount of new space in the pipeline over the next two years stands at just over 300,000 sq m. As is becoming the norm, these are just initial estimates, as the number of new projects that will come on to the market will very much depend on how the economy fares and the availability of finance.

The main retailers in the market continue to be actively expanding, but these expansion plans are always accompanied by an in-depth study of the potential business that can be carried out in the new points of sale.

In addition, various international brands are actively searching for retail units in order to open in Spain.
The general decline in sales continues to favour additional rent reductions for existing leases, mainly via rent reviews and temporary rental discounts.

Prime shopping centres that are performing well, have reached stable rents for new leases and in some cases are even seeing an increase in rents.

After thee years of free fall, the annual investment volume increased significantly. The slightly more than €850m, almost tripled the previous year's investment volume. Thanks to international funds, investor activity has picked up again and traditional properties have returned to being the most in demand product, knocking retail units off the top spot that it had held for several years.

Source : Savills