The retail sector accounts for €311 million of total commercial real estate investment in the first half of the year. The opening of new street-level retail spaces in Lisbon and the expansion of shopping centers remain the main trends.
According to Worx, in 2019, the trend of increasing numbers of convenience stores, combining the traditional and the cosmopolitan, will continue to be attractive to both national and international consumers. The maintenance of consumer confidence levels is also expected. Illustrating this trend, in the first half of 2019, the high street retail market, which led the dynamics in the retail sector last year, continued to show great dynamism, with the opening of approximately 100 new stores in Lisbon.
The most represented sectors continue to be restaurants, fashion and accessories, and decoration and design. It's worth noting that new concepts, such as specialized home delivery services and neighborhood convenience stores, are gaining popularity. In total, Food Services & Drinks account for approximately 90% of new openings. Examples include two A Pousadinha stores in Praça da Figueira and Rua S. Paulo, a new Portugália restaurant in Largo Frei Heitor Pinto, and another restaurant from the Italian Republic chain on Rua Tomás da Anunciação.
The country's most established shopping centers are investing in refurbishment and modernization to respond to new trends, such as focusing on leisure and dining areas, linking these areas to increasing the time consumers spend in the shopping space. For example, NorteShopping will add 13 square meters of gross leasable area (GLA), as well as expand the number of parking spaces, in a total investment of 77 million euros. Colombo, in Lisbon, will also undergo expansion, with an investment of approximately 150 million euros in the construction of a third office building. Both projects are expected to be completed in 2021.
Similarly, Lis Shopping, which does not yet have a defined opening date, will add 7.700 square meters to the existing commercial offer in the central region of the country. The Glicínias Plaza shopping center in Aveiro will also undergo requalification and expansion works, which began in July. Its area will be expanded by 13 square meters, resulting in a gross leasable area (GLA) of 41 square meters, an operation that will involve an investment of 40 million euros and is scheduled for completion in 2021.
Regarding commercial real estate investment in the retail sector, in the first half of the year, the purchase of Leiria Shopping by a German fund, worth 128 million euros, followed by the sale of a portfolio of shopping malls, which amounted to around 100 million euros, and the sale of Barreiro Retail Park by a German fund, AM Alpha, worth 55 million euros, account for almost the entire 300 million euros recorded.
Compared to the same period in 2018, increases were observed in practically all categories analyzed, with the most significant increase being in prime rents for street-level retail in Porto, by approximately 18%, mainly due to the impact of tourism. Prime rents for shopping centers and retail parks registered an increase of around 5%.
Only street commerce in Lisbon maintained its value compared to the same period in 2018.
