Madrid: a jewel in the Vastned portfolio

Madrid’s cultural scene, including museums, theatres, and educational institutions, is a significant draw for both residents and newcomers. The theatre community is world-renowned. Spanish versions of well-known international musicals attract huge crowds from Latin America and the USA. The city’s cultural riches contribute to its appeal as well. Furthermore, Madrid is known for its relatively high quality of life, with many parks, cultural events, and recreational opportunities.

Madrid: a jewel in the Vastned portfolio

Madrid’s cultural scene, including museums, theatres, and educational institutions, is a significant draw for both residents and newcomers. The theatre community is world-renowned. Spanish versions of well-known international musicals attract huge crowds from Latin America and the USA. The city’s cultural riches contribute to its appeal as well. Furthermore, Madrid is known for its relatively high quality of life, with many parks, cultural events, and recreational opportunities.

High-end shopping areas

‘The city is best known for its shopping,’ continues Luis Vila. ‘There are several high-end areas in the city centre: Gran Vía, the Salamanca District (Barrio de Salamanca), with its main shopping streets Calle José Ortega y Gasset and Calle Serrano, and the world-famous Calle de Fuencarral. The last three areas are where Vastned’s properties are located. The Salamanca District, known for its elegant architecture, upscale residential areas and luxury boutiques, is one of the most exclusive shopping areas in Madrid. It is home to high-end fashion brands, designer stores and luxury shopping. Calle de Fuencarral is trendy and has a youthful vibe. The street is located in the high-end Malasaña and Chueca neighbourhoods and has become a popular destination for fashion-forward individuals and people looking for unique and alternative styles, including Spanish and international fashion brands, independent boutiques and concept stores, as well as smaller but attractive omni-channel stores. This street has transformed in recent years, evolving into a pedestrianised shopping area that enhances the overall shopping experience. The atmosphere is vibrant, and you will find a mix of high-end fashion stores, shoe shops, accessories, and more. The variety of available styles makes it a great place for both mainstream and alternative fashion.’

‘Madrid is a major economic hub in Spain, with a diverse economy that includes finance, technology, and services. Job opportunities and business activities in the city attract people seeking employment and career advancement. It contains businesses and headquarters for the total Iberian Peninsula. Tourism, with over 10 million visitors annually and 18% growth last year, is one of the main economic drivers of the city’s economy.’

Luis Vila Barrón
Strategic Retail Real Estate Advisor

Tenants

‘Vastned owns four properties in Calle de Fuencarral, occupied by brands like New Balance (athletic footwear and fitness apparel), Dr. Martens (boots), and Birkenstock (trendy slippers). On Calle Serrano, Vastned houses fashion brand store Sephora, a French multinational chain of beauty and cosmetics stores owned by Louis Vuitton Moët Hennessy (LVMH). Sephora is known for offering a wide range of beauty products. Calle José Ortega is renowned for its high-end and luxury shopping, featuring a variety of upscale boutiques, designer stores, and exclusive brands. Number 36, owned by Vastned, is home to Jimmy Choo, a luxury fashion brand specialising in shoes, handbags and accessories,’ Luis Vila explains.

Fully occupied

‘Our properties are so attractive that they have been fully occupied for years, which is pretty unique in our market. This is primarily because of the quality of the locations, but – Luis Vila adds modestly – also because we know the market inside out. I have been working for Vastned in Spain for almost 20 years and I know precisely what goes on and how to respond to market trends. Our focus is on attractive and solvent brands seeking premium locations in key areas of our attractive city centre. In addition, regulations on leases in Spain are flexible, allowing for tailor-made solutions that satisfy the needs for both landlords and tenants. This way we can always meet the specific demands of customers and therefore negotiate good lease conditions.’

Sustainability is not easy, but we have made great progress

Vastned focuses on leases in which the tenant is partly responsible for dealing with operational sustainability matters, such as sustainable lighting, eco-friendly air conditioning, special doors that keep the heat in. Luis Vila: ‘We are on top of this and have one of the best energy performances in Madrid. And that’s the way it should be!’