The current retail real estate business is experiencing growth in both foot traffic and sales. The onset of the pandemic and the resulting necessity to stay home led to a tremendous surge in online shopping; there was even speculation that consumer purchasing habits would change forever. However, this was far from reality.
As soon as the ban on crossing borders was lifted and we were allowed to travel, the retail boom returned with even greater force.
Tourism and the desire to go out and socialize boosted sales in physical stores, leading consumers to seek omnichannel shopping experiences, where they could shop in person but also enjoy the convenience of online shopping.
How has retail real estate evolved?
Major brands, particularly in the fashion sector—both national and international—as well as the luxury sector, are seeking locations on the high streets of major Spanish cities, with Málaga emerging as a prime example of an up-and-coming market. Málaga’s Calle Larios has positioned itself in third place behind Madrid’s Gran Vía and Barcelona’s Paseo de Gracia. Luxury brands aim to establish themselves where their peers are, all vying for spots on the main commercial streets of major cities where tourism has a significant impact.
The problem is that with so much demand in the same area, there comes a point where new brands cannot set up shop due to a lack of available spaces. Another significant change post-pandemic is the search for larger commercial spaces for brands to establish their flagship stores, as seen with Perfumería Primor in Málaga. Generally, there aren’t many large retail spaces in Spain, and the few that exist are not for sale. Therefore, the establishment of new brands is heavily dependent on the size of the available spaces on high streets, leading to an increasing number of multi-story luxury stores as a way to obtain more space.
Currently, the availability of retail spaces on Calle Larios is less than 1%, and the rental price per square meter has exceeded €350/month in some cases, with the current average being €230/m² per month.
The adaptation of the spaces on Larios to meet customer demand in terms of quality and sustainability, along with the city’s focus on high-end tourism, makes Calle Larios one of the best-performing retail real estate markets in Spain right now.
Sociedad Azucarera Larios Patrimonio S.L. (Salsa Patrimonio), part of the Sociedad Azucarera Larios Group, is a leader in the rental real estate sector in Málaga. From its beginnings, it has accumulated extensive experience in managing its properties, boasting exclusive image and locations.
