The availability of premises is mainly concentrated in commercial and secondary areas.
It is worth noting the high level of availability in the El Corte Inglés-C.C. Larios area, which rose by 11% over the previous year. The prime area accounts for the lowest vacancy rate in the city due to the reduced rotation of brands.
Tenants and property owners are continually changing premises on high streets of Málaga.
During the year, there have been a total of 140 changes in retailer, 37 less than the previous year. Of this rotation, 7% corresponds to the Prime area, 11% to the Commercial central area, and 9% in the El Corte Inglés-C.C. Larios area, as well as in secondary locations. Overall, rental prices in the Málaga market did not register significant variations in the last 12 months. Average rents in the Prime area only increased by 0.55% compared to the previous year, while rents remained stable in secondary locations. Both the Commercial central area and the El Corte Inglés-C.C Larios areas recorded negative variations, with -8.85% and -6.30%, respectively. The highest rental values have fallen considerably compared to the previous year (2019), with rents on Calle Marqués de Larios standing at around €256 per sq m/month. With respect to the previous year, average rents stabilized (0.55%) at €245 per sq m/month for Calle Marqués de Larios.
The increase in effort rates, together with stagnant sales, has been causing retailers difficulty in reaching rental levels, in the short term resulting in a clear drop of rental values. This situation could be aggravated by the effects of the health crisis.
In the first months of 2020, the investment market in the prime area registered its peak in the historical series. This has also translated into an increase in interest in the nearby areas. Moreover, the health crisis has partly slowed down investment activity pending the recovery in spending and the other macroeconomic indicators in the short term.
70% drop in sales in fashion; 9% in supermarkets and grocery
Increased rotation of brands
Expansion plans for 2020 have been brought to a halt
Surge in relocations
30% increase in availability in secondary areas
Entry of new non-traditional retailers on high street
Longer periods of time to replace retailers with new occupiers
Greater investment activity in traditional assets (supermarkets, retail warehouses, etc)
Restructuring of business strategy and reduced number of shops
Upsurge in rent renegotiations
Increase in S&L transactions