Calle Serrano in Madrid never goes out of style. On this occasion, she will witness the landing of a new fashion firm, Colombian Padova, in Spain. With the recommendation of CBRE, the company Rented the building located in Serrano 46, belongs to an unknown family property. A total of 123 square meters spread over two floors on one of the capital’s best shopping streets. Its neighbors are Massimo Dutti, El Ganso, Woman Secret or Tous.
The brand was born in 2016 and “dreams to offer women freedom of expression through its brand.” As it turns out, they make highly detailed garments with quality fabrics and universal patterns that easily fit any figure. The price of their clothes is not low costBlouses over 100 euros and dresses over 200.
Padova will pay a pretty high rent as it is located in one of Madrid’s best areas. According to real estate data platform Brainsre, income can exceed 5,000 euros per month, “in one of the sections with the most exposure and commercial traffic”. Few areas in Madrid have higher prices, including the Puerta del Sol district or the last part of Serrano next to the Puerta de Alcalá. On average, Barrio de Salamanca remains the area with the most expensive buildings, above the Centro district, which has the most tourist streets in the capital. This can be explained by the high purchasing power and purchasing power of visitors in the first area compared to the second.
commercial facilities
In real estate jargon, such facilities are called. high streetthat is, those with the best positions. The profitability that an investor can achieve by leasing one of these is around 3.25%.According to data provided by the CBRE consulting firm. Brands want to return to the streets of Madrid after the Covid-19 health crisis is over. The number of lease contracts increased by 10% compared to 2021 and by more than 150% compared to 2020 in the first half.
In the main commercial centers, the availability of facilities was reduced. The total stock is 361.000 m2 and the vacancy rate is 6.8%. Fashion firms are the top renters, leading about 50% of the contracts.. In the back, accessories (15.7%) and specialized stores (12.7%) stand out as the main tenants in the areas. important.
For this second period, local investments high street continues to grow because there is a forecast that rents will continue to rise. Inflation easily transmitted by traders, allowed owners to update their rents to the CPI. The normalization of restrictions resulting from the pandemic has also helped to restore such assets.
Although new fashion stores continue to open in Spain every day, it is not a market with a good history. Textile segment has reduced its turnover by more than half in the last 15 years. Before the real estate bubble burst in 2007, fashion and accessories brought in more than 22,000 million euros. The 2021 data puts this amount below 9,000 million. Increasing environmental awareness, second-hand market and concern for humane production conditions have reduced the profits of large textile companies.