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Investment in retail reaches €1.066M
11 May 2020 |

Investment in retail reaches 1.066 million euro during 2020’s first quarter, double the volume reached during the first quarter of 2019, according to CBRE.


Nevertheless, the predicted investment sentiment for 2020 is Wait See until the situation caused by the Covid-19 stabilises, revealed the consultant last week.

Covid-19’s breakout accelerated the upward trend which reflected the investment sentiment on retail assets’ risk. Yields on high-street prime retail and shopping centres are set at 3.50% and 5.25% respectively. In terms of operations, the upturn of corporate operations and higher activity in Sale and Lease Back (S&LB) operations managed to reactivate a market affected by e-commerce.

In terms of high street retail, «the decrease in tourism, together with the restrictions imposed in terms of capacity for commercial establishments, will cause a decrease in sales and translate into a rental adjustment, which will stabilise within the coming 18-24 months. On the other hand, interest in more consolidated prime areas will intensify even more. The second lines may lose intensity and affluence due to the new dynamics that might appear when the world goes back to normal», concluded Senra.

On the other hand, the food segment came out of the uncertainty the sector is going through reinforced: the yield demanded supermarkets is between 5% and 5.25%.