On the other hand, it is experiencing the rise of digitization, which is revolutionizing the typical concepts of retail, forcing retailers to adapt their strategies to keep competitiveness. At least this is what is stated in the report "The keys to retail in Spain 2016-2017” published by CBRE.
One of the main conclusions of the consultant is that this economic growth and the increase in the expansion of retailers is marked by the increase in investment in Spanish shopping centers - up to 5% - and by the increase in retail trade, which during 2016 has grown to 3.6%, having a direct impact on the current stage of development that retailers in Spain are experiencing.
SOCIMIS, the most active players in shopping centers investment
In Spain, although only three of the SOCIMIS quoted on the continuous market invest in retail, they were, once again, the most active players in 2016, with 36% of the investment in shopping centers and retail parks. Gonzalo Senra says that “after a few years of great activity, the aim of SOCIMIs will now focus on the management of its portfolios, optimizing them and disposing of non-strategic assets, while trying to acquire assets that fit their own strategies ".
In 2017 the demand of the investors maintains in high levels which, for instance, is reflected in the profitability that has been compressed to 4,25% for the prime product. The profitability for secondary assets has also been reduced, positioning in the range of 5.75% -6.25%, distant from prime product profitability. The number of investors for secondary product is more limited, so the pressure is lower than for prime product. This year there is again an important amount of purchase-sales, and a renewed interest in the retail parks sector, although it is not expected to repeat the record investment volume of last year. The promotion of shopping centers is being reactivated and one of the new trends is its ambition to become a social meeting point, instead of just a place for shopping.
During the first half of 2017, the pipeline of product for sale is as strong as last year, and data confirm that the volume up to this second semester of the year achieve €1,600 million.
The year 2016 was consolidated with a total of seven openings of shopping centers and retail parks. The new open surface during this year has 306,000 m2 of GLA, between openings and expansions. However, by 2017 the forecast is at 200,000 m2. In Spain, by positioning itself as a mature market with a density of 338 m2 GLA per 1,000 inhabitants, it is expected that its promotional activity will not register again the great activity that it had before the crisis, inaugurating an average of 800,000 m2 per year.