Calle Serrano in Madrid remains a timeless backdrop for fashion, and soon a new label from Colombia, Padova, will set up shop on this famed avenue. With CBRE’s guidance, the brand leased the building at Serrano 46, owned by a private family. The space spans 123 square meters across two levels on one of the capital’s premier shopping streets. Nearby neighbors include Massimo Dutti, El Ganso, Woman Secret, and Tous.
The Padova brand started in 2016 with a mission to empower women to express themselves through fashion. It creates highly detailed garments using quality fabrics and versatile patterns that flatter a wide range of figures. The price range sits in the premium segment, with blouses over 100 euros and dresses over 200 euros.
Padova’s leasing choice reflects the prestige of its location, and the rent is expected to be substantial given Madrid’s top shopping corridor. Real estate data from BrainsRE reports monthly income potentially exceeding 5,000 euros in an area with strong exposure and high commercial traffic. Few Madrid districts rival the Puerta del Sol area or the Serrano stretch near Puerta de Alcalá for pricing. Barrio de Salamanca typically records the highest property values in the city, outpacing Centro, which hosts many of the capital’s tourist thoroughfares. The discrepancy is driven by superior purchasing power and visitor spending in the former compared with the latter.
commercial facilities
In real estate jargon these prime venues are called high street locations showplaces with the strongest positions. Investor returns from leasing such spaces tend to hover around 3.25 percent, according to CBRE. Brands aim to reclaim Madrid’s streets after the Covid-19 health crisis, with lease activity rising about 10 percent in the first half of the latest year compared with 2021 and more than 150 percent versus 2020.
In the leading commercial centers, the availability of prime spaces has tightened. The overall stock measures 361,000 square meters with a vacancy rate near 6.8 percent. Fashion firms dominate new leases, accounting for roughly half of contracts. In the back, accessories and specialized stores are notable tenants in key districts, contributing to the nuanced mix of demand.
Looking ahead, high street investments continue to grow as rents are projected to rise. Inflation has been transmitted to rents with some landlords adjusting to consumer price indices. The easing of pandemic restrictions has also helped normalize these assets.
While new fashion stores open across Spain, the market history reveals mixed fortunes. The textile sector has seen turnover decline by more than half over the past fifteen years. Before the 2007 real estate bubble burst, fashion and accessories contributed more than 22 billion euros in turnover. The 2021 figure fell to below 9 billion. Growing environmental awareness, the rise of the second-hand market, and concerns about humane production conditions have impacted margins for large textile groups.