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The process of centralizing Spanish banks and the subsequent closure of branches will have clear implications for the property market. According to experts from the real estate consultancy Laborde Marcet, this situation, coupled with the impact of the pandemic, is giving rise to the proliferation of new businesses, as well as the emergence of vacancies on the second and third commercial lines.
The experts base their analysis on Barcelona, where major banks are looking for premises in prime locations.
The most popular areas are the central streets Ciutat Velha, L'Eixample and Gracia. Consulting company explains that these businesses continued to operate during the pandemic, so they still have room for growth. Green farms, organic food stores and veterinary clinics, and less impulsive consumer stores will be open in small towns.
Bank replacement businesses are taking advantage of wide-fronted corner spaces that are very attractive to this type of operator seeking high visual impact and low rents.
In fact, brands of this type are not willing to pay as much as banks did a few years ago in a deflationary environment. Many institutions signed long-term leases two or three decades ago at a price of about 15,000 euros per month per premises, and now they are occupying it for only 5,000 euros per month, which is a reduction of about 65% of the income that the property owner should receive.
“Mergers and restructuring in the banking sector are accelerating branch closures as part of the digital transformation. Many institutions take advantage of their contracts expiration, usually long-term ones, to leave the premises. The growth of online business means that banks do not need as many branches and are focusing their efforts on more central locations with more added value for their customers,” explains Angela Sánchez, Laborde Marcet's retail director.
A recent study by MasterCard found that 63% of users have switched from or are interested in physical banking, slightly above the European average.
Moreover, the crisis has accelerated this paradigm shift and card payments have become much more common. Time savings and convenience of digital banking are two main reasons for new banks success, which are also able to offer many of the most common services free of charge.