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RESEARCH & INSIGHT SPAINFebruary 2020
BILBAORetail High Street
BILBAORetail High Street
BILBAO 2MARKETSHOTFebruary 2020
New relocations by major chains and openings by renowned brands have seen Bilbao undergo a renaissance in recent years, not only in terms of its prime areas but also on other retail thoroughfares.
The street Calle Gran Vía has seen a transformation of its retail mix since 2018 and brands have been repositioning themselves at different points along this thoroughfare.
Meanwhile, some areas that were until recently considered “cold” have seen an upturn with the arrival of new operators that will increase footfall in the coming years.
RETAIL IN BILBAO
The arrival of the new high-speed rail line will have a positive impact on retail in the city
EXECUTIVE SUMMARY
It terms of its economy and employment, Bilbao is one of the most dynamic cities in Spain
The figures for tourism show strong performance in recent years
Reference prime rent has hit a 10-year peak (€140/sqm/month)
Vacancies are scarce on the main retail thoroughfares (2% on Gran Vía)
With more than 17,000 visitors on a typical shopping day, the street Gran Vía boasts the highest footfall
The investment market for retail premises is liquid and there is investor appetite in terms of both national and international buyers
3BILBAO
“Leader in Retail Transformation”
New market entries in Bilbao in recnt years(2018-2019)
Nespresso Gran Vía, 15
Scalpers Gran Vía, 44
Rituals Gran Vía, 63
Courir Gran Vía, 29
BBVA Ercilla, 33
Vorwerk Plaza Circular, 3
Ba&sh Rodríguez Arias, 4
Mercadona Rodríguez Arias, 17
Five Guys Plaza Circular, 5
Basic Fit Rodríguez Arias, 56
Stradivarius Gran Vía, 18
Bershka Gran Vía, 11
MARKETSHOTFebruary 2020
BILBAO 4
The city of Bilbao is attracting an ever greater number of tourists, with visitor numbers growing by almost 60% over the past 10 years.
Although visits to the Basque capital by Spanish residents predominate, the figures for overseas tourists have doubled over the past decade.
With this momentum and the current strength of Spain as a world-class destination, it is to be anticipated that tourist numbers will only increase.
One of the projects that will help to energise the city, particularly in retail and restaurant terms, will be toe arrival of high-speed rail (AVE), the opening of which is expected for 2023. The intermodal transport hub will exit onto the square of Plaza Circular and connect the AVE, metro, tram system and buses.
This will connect the capital of the Basque country with the rest of Europe the first time, whilst also enabling direct connection to other regions on the Spanish mainland.
ECONOMIC CLIMATE
Tourist arrivals - Bilbao
The economic impact from new influxes of people into the station area will strengthen the city centre, the main retail thoroughfares and adjacent streets.
Source: National Statistics Institute (INE)
934.248
652.978
0
200.000
400.000
600.000
800.000
1.000.000
1918171615141312111009080706050403
Residents in Spain Residents abroad
MARKETSHOTFebruary 2020
BILBAO 5
GRAN VÍA LÓPEZ DE HARO
Nº premises by sector of activity
By number
Bilbao has a number of retail thoroughfares, with Gran Vía López de Haro as the epicentre for retail:• There are 54 premises between Plaza Circular and Plaza Moyúa• The leading sector is fashion, with some 51% of total retail• This is followed by services, with some 33% of the total• Premises of 300-500 sq m predominate, with a supply share of
24%• Premises exceeding 2,000 sq m represent some 22%. This
format is highly sought-after due to the fact that these premises are very scarce on the prime retail thoroughfares of other cities
In the main, these premises are assigned to banks and flagship stores. Examples of this are Samsung, which occupies the ground floor of the Corte Inglés department store and the Zara macro store which occupies 4,230 sq m in the former BBK head office.One of the latest openings corresponds to Thermomix (Vorwerk), which opened its first direct sales store in Spain and has chosen Bilbao as the destination, more specifically on the Plaza Circular. Nespresso has also arrived at number 15 on the street Calle Gran Vía, in an area dominated by fashion brands.
The vacancy rate on the street Calle Gran Vía López de Haro is below 2%.
Gran Vía (stretch from Plaza Circular – Plaza Moyúa)
Breakdown of retail premises by sizeGran Vía (stretch from Plaza Circular – Plaza Moyúa)
By floorspace
0
10
20
30
Fashion Services F&B Health & Beauty Food
MARKETSHOTFebruary 2020
BILBAO 6
Footfall map of Calle Gran Vía
High Low
Footfall
Medium
Source: Cushman & Wakefield with data from Locatus
Following this recent transformation of the area, it is likely over the medium term that there will be movement driven by operators wishing to reposition themselves due to the new influxes anticipated with the arrival of the AVE.
The retail thoroughfare of the Gran Vía has recently undergone a transformation, mainly thanks to Inditex. In 2018, the textile giant brought its new integrated business model (begun in 2012) to Bilbao, consisting of the integration of both its online and bricks and mortar stores under the same roof. The integrated warehouse and online collection point are accompanied by an online order preparation point.
This integration requires more space and the merger of smaller premises.
The opening of the new 4,230 sq m Zara flagship store at number 23 on the Gran Vía (mid-May 2018) entailed the closure of its three previous stores, making it the single point of sale for this brand in the city.
This led to the reorganisation of the Inditex brands: Stradivarius and Bershka held onto their premises on the Gran Vía, the former at number 11 and the latter at 16-18, whereas Zara Home established itself in the premises at the junction of the streets Rodríguez Arias and El Cano.
Thanks to Zara and Primark, Bilbao finds itself in the retail ‘Champions League’
MARKETSHOTFebruary 2020
BILBAO 7
The retail thoroughfare of the Gran Vía boasts footfall of 17,000 visitors on a typical shopping day. The highest footfall is recorded within the middle stretch of the street, where retailers such as Zara, Tous, Bimba y Lola enjoy footfalls that reach 28,000.
The brands areTypes of Operators on
Gran Vía López de HaroPrimark has also come to the fore with a lease for the forthcoming opening of more than 9,600 sq m in the former financial head office of BBVA in Gran Vía1, still undergoing refurbishment.
Other operators have chosen to be present in this area and join brands already established, such as Tous and Bimba y Lola. Among the most recent deals struck in 2019 was the arrival of Courir at no.29, Gran Vía, with a premises of 235 sq m that represents its first establishment in the city, as well as that of the French fashion label Ba&Sh, occupying a 140 sq m store.
The Gran Vía cannot boast a significant offering of restaurants, the fashion sector commanding this street. Hostelry has however taken hold of other thoroughfares within the city, such as the historic centre. Five Guys has nevertheless committed to the retail area with the opening of its first burger restaurant close to Primark on the Plaza Circular.
69% NATIONAL
31% INTERNATIONAL
MARKETSHOTFebruary 2020
BILBAO 8
OTHER RETAIL THOROUGHFARES All of these core areas strengthen the retail area of Calle Gran Vía
Number of premises by sector of activity
Other retail high streets have also grown in prominence, the thoroughfares of Ercilla, El Cano and Rodríguez Arias being particularly noteworthy. Included among the most recent deals struck in this area are the opening of Mercadona at no.17, Rodríguez Arias in the former Bershka premises, the opening of the first Beatriz Furest store in Bilbao at no.2, Rodríguez Arias and the recent signature by the Basic Fit gymnasium chain on a premises exceeding 1,000 sq m at nos.56-58, Rodríguez Arias.
At no.24 on the street Calle Ercilla 24, BBVA has opened the largest client banking centre in Spain and Pompeii has set up shop at no.29 on the same street.
These roads and adjacent streets diversify the retail offering and serve a different type of shopper, thanks to the great fashion and service mix and the array of both premium brands and smaller, traditional retailers.
The Zara macro store additionally has two entrances, driving the flow of people between Calle Gran Vía - the main entrance for the establishment, and the rear of the store where the secondary entrance is located.
This part, at the junction of the streets Rodríguez Arias, Astarloa, Licenciado Poza and Bertendona, expects to be energised by the flow of people that will frequent this area.
0
5
10
15
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25
30
35
Fashion Services Health & Beauty F&B Home
Calle Ercilla Calle Rodríguez Arias Calle Máximo Agurirre
MARKETSHOTFebruary 2020
BILBAO 9
PRIMARK PLAZA CIRCULAR
Image source: Associated British Foods plc. - Annual Results Announcement September 2019
With 47 stores, Spain occupies second place in terms of the number of premises, behind only the UK
Spain is set to be an engine of growth for Primark in 2020. The clothing chain anticipates 2020 sales growth of around 5% in Europe, with Spain being amongst its main sources of growth.
The opening of the Primark premises on the Plaza Circular square in Bilbao will be key to this expansion. It will be the second largest store for the firm in Spain, behind only the 12,000 sq m that it occupies on Madrid’s Gran Vía, and exceeding that of the recently opened store on the square of Plaza Cataluña in Barcelona.
This store will represent a new focal point for retail development in Bilbao due, among other factors, to the fact that it:
• Occupies 5 floors of the emblematic BBVA building
• Is located at the start of the Calle Gran Vía
• Is on the same roundabout as the entrance to the AVE high-speed railway station
• Consists of a macro store at a national level
In short, this new site for the fashion giant will have a significant impact on the retail set up in Bilbao, paving the way for a new wave of retailers and amenities that will improve the retail offering.
MARKETSHOTFebruary 2020
BILBAO 10
Bilbao - Gran Vía 140
Málaga - Marqués de Larios170
Sevilla - Tetuán 125
Palma de Mallorca -Jaime III
115
Madrid - Preciados275
Barcelona - Portal de L'Angel
285
0
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300
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
The Gran Vía has the highest high street rent in Bilbao Bilbao is one of Spain’s leading destinations for investment in high street retail premises, as are other cities such as Valencia and Sevilla where shoppers focus their attention on prime areas.
Other retail thoroughfares
Address Buyer Floor area(sq m)
Price (€m)
Gran Vía, 1 Talus 21,000 85
Gran Vía, 6 Tander Inversiones 260 7.5
Gran Vía, 20Corpfin Capital Real Estate
5,520 65
Gran Vía, 37 Vivisa 550 13
RENTS
Most recent investment dealsComparative trend in rents on Calle Gran Vía
(€/sq m/month)
Although the prime rent stood at around €140/sq m/month in 2019, representing a decrease on the previous year, this figure remains above the level for the 10 years preceding 2018.
Given that certain deals have been struck at rents above these levels, this price may be even higher depending on the section of the street on which the retail premises is located.
Both national and international investors compete with local investors, the latter often being more aggressive in their acquisition bids.
The prime yield for the stretch from Plaza Circular to Plaza Moyúa continues to contract, closing 2019 at an all-time low of some 4%. This translates into a fall of 25% in comparison with 2018.
INVESTOR ACTIVITY
BILBAO 11
A STROLL THROUGH BILBAO’S STREETSA journey replete with success and major brands
To now
From 2013
Asics631 sq m
Gregorio de la Revilla
2
Primark9,600 sq m
Gran Via 1,3,5
Stradivarius300 sq m
Gran Via 37
Celio345 sq m
Gran Via 27
Lush163 sq m
Gran Via 6
Basic Fit1,040 sq m
56
Courir234 sq m
Gran Via 29
Ba&Sh140 sq m
RodríguezArias
6
Sunglass Hut235 sq m
Gran Via 15 RodríguezArias
RESEARCH & INSIGHT SPAINFebruary 2020
cushmanwakefield.es @CushWakeSPAIN©2018 Cushman & Wakefield LLP. All rights reserved.
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implicit, is made with regard to the accuracy or completeness of the information herein, this being subject to errors, omissions, changes in price, rent or other conditions, retraction without prior notice and any other special condition imposed by our directors.
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