The Passeig de Gràcia is now formally the commercial axis of gold in Spain. The street where all brands want to be and where they are willing to pay the highest rental prices. This time it has slightly surpassed its direct competition in Barcelona (the Portal de l’Angel, which used to lead the ranking) and the ‘top’ streets of Madrid. And he has done it based on resilience, after the bad taste of the pandemic, which also affected the promenade, although to a lesser extent than in other streets in the so-called ‘prime’ or front line. But also for its differential characteristics.
In fact, In 2019, the promenade had five premises available for rent (usually with fast transfer), while in the second quarter of 2021 (after the health nightmare) it reached 18 closed. At the moment, it has a dozen unused, although some with imminent contracts or reactivations shortly. Only a few are stranded due to their structural peculiarities. However, there is queue of brands lurking in search of their ideal space. And that several firms pay in the luxury section 60,000 euros per month for about 200 square meters and amounts in that line depending on the dimensions.
Some details are provided to this newspaper by Domènec Casellas, head of Retail in Spain at Cushman & Wakefield, the real estate consultancy that on Wednesday published its classification ‘Main Streets Across the World’with the 92 most sought-after shopping streets in the worldwhere the promenade ranks 18th, while New York’s Fifth Avenue is the most expensive.
Despite bringing together luxury trade, Passeig de Gràcia had never been at the forefront in Spain because the report measures the highest price per square meter (and not total), where the Portal de l’Àngel used to prevail, as a benchmark for the big popular brands, in a continuous push to gain the maximum number of stores on a street particularly short and hotly contested.
Up to 300 euros per square meter
But 2022 has not only brought the recovery of consumption at street level and that of the indispensable sightseeing for centrality commerce (which does not draw from residents of the area but “from the entire city and the world”), but has revealed the remarkable strength of Paseo de Gràcia in the face of the previous crisis.
The truth is has won by very little to the local rival and to the madrileñas Serrano, Gran Via, with Preciados at something more distanced. The Barcelona axis that goes from Plaza de Catalunya to Diagonal leads the podium with an income of 2,677 euros per square meter and year, which represent 223 euros per square meter and month. In the upper section of the promenade, which concentrates 60% of the total offer and aligns luxury brands, the rental price easily reaches 300 euros per square metersays Casellas.
Being the most sought-after shopping street in the State means, more than money, that all the big operators want to set foot in it and be an essential point of reference for the buyer. For this reason, the recovery has been vigorous and with an availability rate of only 6% in its 170 establishments (8.5% in terms of square meters) this fall, although none are available in the most elite stores. In other downtown streets, non-active stores still represent double-digit percentages.
On the promenade the prices of locals in the market they are down 15%, figures the consultant, which includes properties that have been waiting for a boyfriend for some time due to their peculiarities. For example, what was the Bulevard Rosa, due to its large size but with handicaps such as the low height of the ceilings, or others due to having stairs, or a narrow façade.
The president of the Passeig de Gràcia Association, Luis Sans, values the good moment of the ride, “it did not have as many drops or price drops as other areas”. Its commercial balance, with 40% of shops from the so-called mass market and the rest luxury, with flagships of different multinationals, with gastronomy with Michelin stars, with cultural interest and two first-rate tourist veins such as the buildings of gaudi They are key for there to be a waiting list for operators looking for a certain size or location. It is common for a tenant to leave a premises only to move to a better one, as Adidas or Hermès have done, for example. Or that prestigious firms continue to arrive, such as Ralph Lauren recently.
He points out that the promenade has not suffered so much from the desertification of visitors or some problems that have affected the Gòtic due to the pandemic. And that many operators managed to reach temporary agreements on their rents.
The tourist season has been good on the promenade, although sales to travelers are still 25 or 30% below 2019, in absence of Chinese and Russian tourists, above all, although palliated with the rise of Americans and Europeans. Sans, however, expects a good Christmas campaign, given the number of visitors from the rest of the city and from Catalonia that the area has gained loyalty.
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In this sense, another of the keys to success has been its effort to position itself as a must-see axis, with claims such as the self-designed Christmas lighting that they have been leading for years. This Thursday they will turn on their new proposal, based on the star of the Sagrada Família, who has no doubt that “it will cause a sensation” since it looks “even during the day”.
Casellas also argues that Passeig de Gràcia has elements comparable to Champs Elysées, as it brings together so many attractions, that there are no other streets that follow it in the Spanish ranking, since their cultural or fashion offer is more spread out by area.