Why retail parks drew more money before the pandemic
Last year, the value of properties bought and sold exceeded 300 million euros. That figure rose 86% from 2021, according to JLL, and represented about 16% of the total investment in business assets, per Savills. Key moves included Parque Mediterráneo in Cartagena, bought by Frey for 83 million euros; Bahía Real in Camargo (Cantabria), acquired by Savills IM for 60 million; and Álcora Plaza in Alcorcón (Madrid), purchased by the AEW fund for 52 million.
Rents in mid-sized parks run around 17.5 euros per square meter per month. Returns for owners range from 5.5% to 6.75% for top assets, with lower yields in secondary locations.
Analysts note that the industry should keep its momentum. Savills, in its latest report, says profitability gaps between parks and traditional centers are likely to persist in the short to medium term. Investor appetite remains solid for these assets, particularly for those with a strong growth path, according to JLL.
Eduardo Ceballos, president of the Spanish Association of Shopping Centers and Parks, argues that retail parks have delivered solid sales and visitor numbers since their late-year openings. He also says this format has long been a well-kept secret in the country and is now one of the most attractive asset classes for both consumers and traders as well as investors.
Why did they recover before the pandemic?
Alberto Bravo, Director of Property Management at Sonae Sierra for Spain and Portugal, explains the post-pandemic rebound of retail parks. He points to direct street access to stores, the easing fear of enclosed spaces, and a focus on essential needs during a health crisis—food, decorations, and DIY goods—driving demand again.
Bravo and Ceballos agree that retail parks can blend online and physical shopping. Bravo also notes that these assets are easier for investors to manage and are perceived as safer. Parks often avoid underground parking or sprawling common areas that require heavy air conditioning, fire protection, and waste management. He adds that managing 200 shopkeepers in a traditional mall is not the same as coordinating 20 separate businesses.
New projects and the future of the industry
Last year saw four new parks open: Mirasierra Gallery, Parque Comercial Sierra del Tormes, Nasas Nigrán, and Parc Comercial Vilanova. AECC data indicates 22 additional projects are planned to complete between 2023 and 2025.
The outlook envisions greater tenant diversification, bringing in health, sports, entertainment, and restaurant operators. Construction activity and environmental performance are improving, and new operators are injecting energy into design and operation, notes Alberto Bravo.
Inbest sells its commercial parks
Recent weeks have highlighted several asset sales in a strong market. One notable move involved Inbest Retail Parks SA, part of a director-led investment vehicle, which put Parque Comercial Taronja in Valencia and Las Rejas in Madrid on the market. React News reported that Knight Frank is handling the sale process on behalf of the seller.
Las Rejas sits on the Las Mercedes Industrial Estate along the A-2 corridor. The center spans more than 8,700 square meters and is leased to eight operators, including Urban Planet, Jysk, Éggo Cocinas, Tiendanimal, Feu Vert, TGB, Taco Bell, and Momo. Taronja, located opposite the Ribera del Xúquer Mall, was acquired by Inbest in July 2016 and offers roughly 8,500 square meters of space, with tenants such as Kiwoko, Burger King, Tedi, Electro Hiper, Maxcolchón, and Pepco.
Market sources cited by El Periódico de España from the Prensa Ibérica group indicate both assets are 100% rented with a profitability around 6%, reflecting healthy market appetite, though Inbest declined to comment.
Lar España explores the market
Listed real estate group Lar España, focused on malls and parks, is examining the sale of several assets: Vistahermosa Shopping Complex in Alicante; Abadía Commercial Park in Toledo; Prime Retail Park in Rivas (Madrid); and Vidanova Park Retail in Sagunto (Valencia). There is no official authorization or date set for these moves, and only one project in Bilbao appears unlikely to be part of any sale plan.
Lar España reported revenue from its parks around 27.2 million euros in 2022. If all four assets are offered at similar profitability to Inbest’s, the aggregate potential could surpass 240 million euros.
“There is more interest in retail parks than in traditional shopping malls. The market is shifting, and momentum for investment and divestment in the retail sector is not constant,” said Lar España. “Selling these four assets is on the table, but it remains a possibility rather than a firm plan because the company still has time to execute its strategy through 2025, including the disposal of up to 400 million euros in assets.”