spain retail snapshot

Cushman & Wakefield property report in my paw, May 2010.

Spain retail property trends. Country report. Summarised.

Following a return to annual sales growth in March, retail sales have slipped again in the year to May.

Tenant demand has seen a modest pickup in Q2 2010, with more deals signed than the last two quarters. International operators are looking for prime space.

Polarisation between prime and secondary continues.

Amounts of key money payable are well down on the peak of the market.

Prime retail yields for June unchanged on March, but top high streets in Madrid and Barcelona ,recorded a marginal hardening to 5.25%.

While trading conditions remain sluggish, the worst of the recession appears to be over and gradual recovery expected next year.

But the best bit is this: Prime retail yields Jun 2010: Last year 6.25, Mar and Jun Q 6.0 Prime yields are under downward pressure.
Ten year high 6.5, low 4.25.

The Spanish retail property market is turning around very gradually , but it is starting to point up, with the concentration of improvement in mall type prime space. Main new demand coming from international retail chains/franchisors. Opportunists, of course.

Dont get caught short.