The commercial real estate sector is going through a dynamic period. Tourism is once again filling the streets, the economy is keeping its finger on the pulse and domestic consumption is pushing hard. The result: busy shop windows, coveted premises and growing competition for the best locations.
In cities such as Madrid, Barcelona, Bilbao, Valencia, Malaga, Seville, A Coruña, Vigo, San Sebastián, Zaragoza, Palma de Mallorca and also in Lisbon and Porto, the most emblematic shopping streets are almost full. Demand is strong.
Operators, both national and international, are vying for a foothold in the prime axes. Every free square metre is an opportunity and every new contract reflects the strength of a sector that continues to attract investment.
Keys to the retail high street report:
- Rents in prime locations continue to register sustained increases, especially in smaller premises.
- Tourism maintains its leading role in coastal cities and large capitals, with all-time highs in visitors and overnight stays.
- The investor continues to focus on prime locations, with sustained growth in international interest in markets such as Madrid, Barcelona, Lisbon and Palma de Mallorca.
- The polarisation between the luxury and mass market segments is accentuated, with strong appetite at both ends of the market.
Highlights by city of the retail report
Madrid. The Spanish capital exceeds 95% of commercial occupancy in its main arteries. Preciados and Fuencarral streets reach 100% of occupancy, with rents of up to 400 €/m2 for the smallest premises. For its part, Serrano maintains its leadership in luxury, with rents exceeding 700 €/m2 for premises of less than 50 m2.
Barcelona. Passeig de Gràcia consolidates its position as the most expensive shopping street in Catalonia, with rents reaching 600€/m2 for small premises and only 2% of availability. Pelai, Rambla Catalunya and Portal de l'Àngel have occupancy levels close to 100%.
Bilbao. Gran Vía maintains its hegemony with an occupancy rate of 99% and an offer that combines mass market and premium operators. Rents vary from €55/m2 for large surfaces to €200/m2 for premises of less than 100 m2.
Valencia. Juan de Austria and Colón are close to full, with rents reaching €230/m2 for small premises. The city maintains a strong commercial and tourist dynamism, consolidating its attractiveness for emerging brands.
Seville. The Tetuán-Velázquez-O'Donnell axis presents an occupancy rate of 97%, with rents of up to €209/m2 for small premises. The demand for premium brands in Rioja and the recovery of Sierpes are boosting the market.
Malaga. Calle Marqués de Larios reaches an occupancy rate of 98%, with rents of up to 300€/m2 in the most sought-after areas. The boom in tourism is driving the retail sector in the Andalusian capital.
A Coruña. Plaza Lugo reaches 100% occupancy, with rents ranging from €30/m2 to €100/m2 depending on size. The arrival of cruise ships reinforces the tourist and commercial importance of the Galician city.
Vigo. Calle Príncipe maintains a 92% occupancy rate, with rents of up to €85/m2 in small premises. The upturn in tourism and the weight of the logistics sector are underpinning commercial growth.
San Sebastian. Avenida de la Libertad and Calle Loiola have occupancies of 97% and 98% respectively. Rents reach €175/m2 in Loiola for premises of up to 100 m2. The city is among the three most attractive for national retail investment.
Zaragoza. Paseo Independencia has an occupancy rate of over 97%, with rents reaching €130/m2 for small premises. Its strategic location between Madrid and Barcelona makes it attractive to international operators.
Palma de Mallorca. Paseo del Borne and Calle Sant Miquel registered occupancies of 100% and 98% respectively. Rents reach up to 200€/m2 in Born, consolidating Palma as a priority destination for luxury retail.
Portugal: Lisbon and Porto. In Lisbon, Avenida da Liberdade leads the Portuguese market with rents of up to 220€/m2 and yields of around 4.25%-5%. In Porto, Rua Santa Catarina maintains maximum rents of €160/m2, with yields of up to 6%.
Conclusion
The commercial real estate market has confirmed its resilience in 2024, especially in the main prime streets where demand from global operators and investment appetite are concentrated.