What a journey!
UP! Under its youth, Real.Estate hides the great maturity of its managers who have more than 50 years of experience in commercial real estate within major consulting firms and specialized structures. This unique experience in a niche market is enhanced by a resolutely entrepreneurial spirit and a passion for retail real estate. Our team now has around ten people divided between our offices in Paris, Metz and Lyon. Our expertise is based on 4 business lines, capital market, marketing, brand development and operational asset management, and is aimed at all players in commercial real estate, regardless of the asset class (shopping centers, retail parks or at the foot of buildings). We are extending our interventions internationally thanks to our association with the TIRCA network, which brings together specialists in many countries (United Kingdom, Belgium, Germany, Italy, Sweden, United States, etc.).
Among several great operations, one did not go unnoticed!
Our “Capital Market” department finalized more than €500 million in transactions, including the emblematic sale of the 14th avenue retail park located in Herblay for €66 million with a record yield of less than 4.50%. He was also a sales advisor for other major transactions such as the sale of three complexes to Groupe Voisin (Cormontreuil, Terville-Thionville and Jaux Venette) for a volume of €135 million, the SQY shopping center (sale between Hammerson and SGM), 3 retail parks on behalf of Groupe Frey or the sale of a retail park in Chambray-les-Tours to ImocomPartners (€11.6 million) at the end of December 2020. We also participated in the outsourcing of of Buffalo Grill restaurants (€20 million) in 2020. These operations bring us recognition from our peers and confirm the commitment of our teams, their responsiveness, their tenacity and our tailor-made services.
What is your assessment of the year 2020 for commercial real estate?
There is what we hear and the facts. 2019 put an end to the trend of “retail bashing” since commitments reached 6.1 billion volumes transacted (second all-time high). Despite the health crisis, the two confinements and the application of curfews, the retail property investment market recorded good performance in terms of investment volumes in 2020. With approximately €4.4 billion transacted in 2020, commitments are certainly down by 28% but identical to those of 2018 and only slightly below the ten-year average (€4.6 billion).
It is true that since the start of the health crisis, many brands, already in difficulty, have been the subject of collective proceedings. Despite this gloomy context for trade, several recovery operations have demonstrated the confidence of traditional trade players in the sector. Evidenced by the takeover of Bio C’Bon by Carrefour, Courtepaille by Buffalo Grill, La Halle by the Beaumanoir Group…
Covid 19 is ultimately just an accelerator of trends and changes that have already been observed for a few years.
How is the sector evolving?
Commercial real estate is going through many changes: e-commerce of course and its combination with physical commerce, the confirmed attractiveness of assets on the outskirts, especially since the health crisis (because less anxiety-provoking), the entry in force of the Elan law which stabilizes the offer in terms of m².
This change in the retail model and the penetration of digital into consumer habits do not eclipse the importance of physical points of sale. The rise of phygital reflects the compatibility of physical and digital businesses.
All these developments are boosting the sector. All that remains is to offer investors cutting-edge expertise and perfect knowledge of this sector. This is the ambition of UP! Real.Estate and the strength of its specialization in this niche market.