The CBRE real estate firm reports a 64% increase in the availability of premises on Palma’s main commercial streets. The crisis has led to the greatest increases being on the Born, Jaume III and Sant Nicolau. Alexandre Rosselló and Sant Miquel are the only streets where availability hasn’t risen by more than ten per cent. This is attributable to the fact that shops are more aimed at the local market.
There were twelve rental transactions for premises on the main streets last year, whereas there were 22 in 2019. The most were on Unió and Sant Nicolau, where rents are lower.
CBRE says that various arrangements to soften the blow of the crisis have been agreed between tenants and landlords. Rent reductions are up to 30%. The firm says that owners are at present receptive to accepting staggered payment of rents for premises that are empty.
The level of investment in Palma’s main commercial streets was close to seven million euros last year. In 2019 this was 30 million. Nevertheless, CBRE notes that “the Balearics continue to generate interest among investors who are seeking high returns and sustainability of their investments in the medium to long terms”.
The firm adds that the Balearics have the lowest commercial density per inhabitant in the country, with 202 square metres per 1,000 inhabitants. The region also has the lowest logistics intensity, but this is expected to increase as a consequence of the pandemic. Online selling and electronic commerce are becoming ever more established. In 2020, there was a 15% increase in availability of premises for logistical use, mainly on the Can Valero and Son Castelló industrial estates.