In recent years there has been a greater movement in the business premises of Madrid. Close some, open others and all at a time when investing in a local is really very profitable. «We are seeing that the locals generate a great interest not only as a use, to set up a business, but also for those who want to invest because it offers a big profitability, today up to 9% of gross income», tells ABC Ferrán Font, director of Studies of Pisos.com. And it is also this type of investment, if we compare it with the one of the houses, «it has a much simpler maintenance». The crux of this rental fever is that it can compromise the viability of traditional businesses.
In the Barrio del Pilar, for example, in the last two years 50% of the premises have been closed, according to the data handled by the association of merchants in that neighborhood. Luis Miguel Guerrero, its vice-president, and franchisee of the real estate group Tecnocasa, recognizes that the commercial premises "are either in transit or in a very commercial area or, if not, they have no way out". It produces "a great turnover because there is not much business. People arrive with higher expectations and then the results are not as expected and close, because the cost is very high, "he adds. The price of the premises in this area varies between 1,000 and 2,000 euros to which we must add the expenses as autonomous and the normal expenses of any local. «The normal thing is that the tenant also invests in accommodating the premises to his business and supposes an investment more», remembers Luis Miguel Guerrero. If the premises are close to the exit of the metro «the prices are higher and neither are they profitable». Even in shopping centers like The trough "There is a lot of turnover" and that's where more franchises open up. In other more central areas such as Malasaña, for example, there have been cases of doubling and tripling the prices of rents and traditional businesses eventually close. In the most touristic neighborhoods the empty premises are occupied by new tenants with other types of businesses such as franchises, laundries, real estate or bookmakers. In addition, the rise in the price of housing rental also affects the trade since tenants have lower purchasing power.
Madrid in the lead
According to the data provided by the real estate agent Solvia, this market recorded an investment close to the 3,900 million between August 2017 and August 2018, 5.4% more than a year before, and a sales volume of 31,200 operations. The average investment amount was 124,273 euros (4% lower). The average price for all of Spain is approximately € 1,000 / m2 but in the case of Madrid it has already reached € 1,475 / m2. The average rental rent was € 7.8 / m2 but in the case of Madrid it was € 10.8 / m2.
With regard to the market rotation, for every 100 published places they sell around 35-40. As highlighted by the Director of Strategy, Business Development and Consulting Solvia, Guillermo Estévez, "the demand is focused on central areas (prime) or shopping centers, which have taken much of the traditional trade traffic. The small premises and commercial areas in the outskirts or suburbs are suffering to a greater extent the boom in e-commerce and changes in consumer habits ».
Augusto Lobo, director of the Retail area of JLL in Spain, it points out three different profiles of investors in these stores. On the one hand, the institutions, "such as insurers and pension funds, that look for operations with high volumes, stable and recurring income and a lot of security regarding the profile of the operator". On the other hand, investors who "seek to buy empty premises or with incomes below market, to reconvert those premises, rent them for higher rents and later sell» And third, private investors who "look for safe alternatives for investment". Augusto Lobo waits in the 2019 «A certain stabilization in this market. We anticipate that there will not be as significant rent increases as in previous years, that occupancy levels will remain high and the search for central locations by large operators will again be another trend. At the investment level, our scenario for next year is stability in returns. "