These retail parks present a distinct class of real estate asset, drawing growing attention in recent times. They differ from traditional shopping centers because each store typically has its own facade and direct street access, often with a dedicated parking area nearby.
In 2024 and beyond, Madrid and Barcelona are seeing most new openings. Around 85% of upcoming parks account for about 60% of the gross lettable area slated for release, with a total of 26 new retail parks planned to welcome shoppers between this year and the next. These developments span shopping centers, entertainment venues, and related outlets.
Spain still records one of the lowest densities of these parks compared with peers like Belgium, the Netherlands, Sweden, the United Kingdom, and Germany. Some regions lack this presence entirely, while others show only a sparse footprint. A report from JLL highlights that this market holds opportunities for new park development, driven by scale, diverse commercial offerings, and limited local competition. This assessment is cited by Prensa Ibérica.
The director of capital markets at JLL in Spain notes that retail parks are evolving to attract interest beyond major cities. Historically centered on Madrid and Barcelona, the market now presents opportunities when a single dominant park or a few nearby options prevail, with minimal nearby competition.
Investor sentiment
JLL reports that investment from both national and international funds and private entities reached 300 million euros in 2022, exceeding the 2017–2022 average by about 10%. In the first half of 2023 the figure stood at 145 million euros, with potential for a substantial rise if major transactions close.
Investors once treated retail parks as secondary assets. During the pandemic they proved resilient as they aggregated grocery retailers, supermarkets, home improvement and DIY stores, and, increasingly, food-related tenants. This mix made retail parks highly attractive due to low maintenance costs, strong connectivity, and solid profitability, says Augusto Loco.
Annual returns from rent collection are generally around 5.75 to 6 percent in Madrid and Barcelona. Outside these hubs, returns rise by roughly 100 basis points, reaching about 6.5 to 7 percent. An example is Parque Comercial El Osito, sold by Aliseda to the French group Iroko Zen last May, which yielded a 7 percent return. Rents do not fluctuate with location; a typical 1,000 square meter unit in a well-positioned park averages about 17.5 euros per square meter.
Iroko Zen, a French SCPI, represents a highly active investor profile in this market. French operators appear particularly comfortable with the park format since many tenants come from France and include players like Carrefour and Leroy Merlin, as noted by JLL’s director of capital markets.
Looking ahead, potential transactions shaping the sector include the likely sale of Socimi Lar España’s park portfolio. Notable assets include Vistahermosa Shopping Complex in Alicante, Abadía Commercial Park in Toledo, Prime Retail Park in Rivas, and Vidanova Park Retail Park in Sagunto.
Upcoming projects
The upcoming project that will open toward the end of 2024 is Breogan Park in A Coruña, the relocation of the former Dolce Vita site in the Agrela industrial area. The new park spans about 60,000 square meters and replaces the former structure that operated for six years.
The Tarraco Centrum in Tarragona stands out as the second major project, promoted by Ten Brinke. It will offer around 37,000 square meters for tenants, built on a footprint originally planned to accommodate a large Ikea.
Señorío Plaza in Illescas, Toledo, will cover roughly 30,000 square meters and is slated to open in the last quarter of 2024. The development will feature an Alcampo hypermarket and a service station, along with 30 fashion and home goods stores, sporting outlets, cinemas, a bowling alley, and a 10,000 square meter dining and refreshments zone.
Across the rest of the country, new spaces are planned in Dos Hermanas (Seville), Vilanova de Arousa (Pontevedra), San Cristóbal de la Laguna (Tenerife), Málaga, Linares (Jaén), San Cibrao das Viñas (Ourense), León, Seville, San Fernando (Cádiz), Córdoba, Pamplona, La Garrucha, Elche (Alicante), Cáceres, Crevillente (Alicante), Estepona (Málaga), and Puerto Real (Cádiz).