Retail real estate still heading strong

MAPIC is over for another year and the atmosphere was equal to that of any other year with a steadier economic climate. The participants enjoyed the event and opportunities were plentiful as the stalls were flocked with visitors and the speakers inundated with listeners. If you missed the event MAPIC is sure to return next year and we have asked the director Nadine Castagna to answer some of our questions about the event and what the future bodes for the industry.

Interview with Nadine Castagna, MAPIC director

How is the European retail market doing at the moment? Is it affected by the financial crisis?
Retail is among the most resistant real estate assets in the property sector. Real estate professionals may feel the European retail market has slowed down with the crisis, but MAPIC remains buoyant. More than ever, participants want to attend the market to meet key professionals and network with them and to find future business opportunities. What is at stake today is not brand representation, but the concrete necessity to find the clients and ensure the business, and MAPIC is the place where developers are sure to meet retailers in numbers.

How is the market reflected at MAPIC? How does participation evolve compared with the previous editions?
The market is reflected by the participating companies, which represent all the segments of the retail real estate sector: developers, retailers, investors, local authorities… We welcomed more than 11,000 participants, including more than 2,300 retailers. What is also reflected at MAPIC is the emergence of high potential territories which open up new business opportunities.

Which countries are best represented at MAPIC?
The MAPIC ‘Top 10’ in terms of participating companies mostly covers European countries, such as France, Italy, the UK, Spain, Belgium, Germany, the Netherlands and Poland. But The Federation of Russia comes fourth with almost 300 participating companies, representing a 79 percent increase compared to 2006, while the US represent a 41 percent increase and Turkey has entered the top ten for the first time last year with a triple digit growth of 176 percent.

What are the best retail locations highlighted at the moment?
MAPIC 2008 decided to turn the spotlight on one Guest of Honour country that shows a remarkable dynamism: Turkey. Turkey is a major retail location today and is very prolific in building shopping centers (more than 80 projects in the pipeline on top of the 154 existing sites). According to the report of our Knowledge Partner Cushman & Wakefield, by 2010, commercial space will increase from 53 to 115 sq m per 1,000 inhabitants. Our conference programme also focused this year on the development of shopping centers in Ukraine, as well as the retailing opportunities in Morocco or India. Overall, one of the major retail locations that emerged last year is Central and Eastern Europe. Several markets in particular are very dynamic in the region. Poland has increased the number of its participating companies by 53 percent between 2006 and 2007. As of today, companies that exhibit from Ukraine and Bulgaria have more than doubled respectively compared to last year. And already five stands are confirmed to present retail projects from Serbia, Croatia, Slovenia and Monte Negro. These Balkan countries were not represented at all in the previous editions.

How was the UK represented at MAPIC this year?
The UK has always been one of the major participating countries at MAPIC, which was ranked third in the top ten in 2007, with 380 participating companies (plus an 11 percent increase versus 2006) and 114 exhibiting companies (plus 34 percent increase versus 2006). Again this year, the presence of the UK was strong. All consulting companies exhibited this year (Cushman & Wakefield, CBRE, DTZ, Colliers International, JLL, Kingsturge and new company Savills…) as well as major developers (Hammerson, Grosvenor, McArthurglen, Land Securities, Capital Shopping Centres, Parkride Holdings…) and key players showcasing projects in the ECE region (Ballymore, Quinlan..). Many UK retailing companies attended too, such as The Disney Store, Newlook, Burger King, Harrods, Gap, Body Shop, La Senza, Nokia… Some presented innovative concepts, such as the nursery brand Mamas & Papas, or the noodle bar Wagamama which is developing fast in London. But mostly, the UK distinguishes itself by the representation of its local authorities: Edinburgh, Nottingham, Leeds, Bristol, Manchester, Liverpool, Birmingham and Belfast, all attended MAPIC this year. The UK market has always been very dynamic at MAPIC. British companies and delegates have long understood that even in unsettled times MAPIC provides them with a unique opportunity to develop their business.

What did this year’s edition of MAPIC offer the participants? Any new features, special events?

The Guest of Honour Country was new. MAPIC also proposed new opportunities for visibility. For the first time Speed Matching will now include one session for the presentation of five investment funds, on top of the two sessions presenting ten shopping centers and the two sessions presenting ten retailing concepts. The event’s coveted awards have got a new name following our partnership with Estates Gazette and they are now called the MAPIC EG Retail Awards. In addition, for the first year, the awards now honour architects, consultants and financial backers of retail real estate projects, on top of the retail brands and shopping centre developers that were already competing.

For more information about MAPIC or the upcoming MIPIM event telephone Audrey Hajiaaj on +33 1 41 90 45 39 or email her at Audrey.hajiaaj@reedmidem.com. Alternatively visit the website at www.mapic.com.