_Retail, the Real Estate Belle of the Ball

For several years now, the retail sector has continually topped the table in terms of investment volume, accounting for over 50% of Spain’s commercial real estate investment.

Elaine BEACHILL febrero 13, 2017

Although the year to date total investment volume is down on 2015, by the end of Q3 over €2.5 billion had been invested in shopping centres and retail high street units, with the year-end value expected to come in at around €3.5 billion. However, this comes as no surprise. Retail assets are extremely appealing to investors, thanks to both the general economic growth forecasts and the increased sales and footfall being seen in some shopping centres.

If there is one aspect that currently defines the retail segment, it is the lack of prime product. The prime centres available for purchase have already come on to the market, hence investors are now finding that they are being forced to focus on core plus and value added product, which provides a higher yield, but requires more capex investment. This is also causing a shift in investor profile, with SOCIMIs, who were the key players last year, taking a back seat and passing the mantle on to international funds and retail specialists.