After several atypical years in sales and traffic of shoppers and visitors in shopping centers, 2023 brought with it an economic bonanza of 5% increase in sales compared to those made in 2022, confirmed general managers and representatives of this sector at a round table convened by the Association of Puerto Rican Shopping Centers (ACCP, in Spanish).
According to ACCP president Adolfo González, 2023 was a year of recovery at a pre-pandemic level in terms of visitor traffic, sales and changes in the number of tenants settling in shopping centers.
"What is noticeable at the industry level is that there is demand. The typical anchor has been changing. Another thing we have observed that has changed is the demand for food in all aspects from fast food to high-end restaurants," Gonzalez said.
The executive reported that tenants in the food sector located in San Patricio Plaza reported an increase in sales above inflation. Likewise, he mentioned that the sales in the convenience stores increased by 30% after the pandemic.
The general manager of Plaza Las Américas and Plaza del Caribe, Edwin Tavárez, agreed, after mentioning that in 2023 an increase of 10% in visitor traffic was reported in Plaza Las Américas and 3% in Plaza del Caribe.
"2023 was a spectacular year for us, also compared to even pre-pandemic years. In terms of sales, we exceeded 5% sales in both malls compared to the previous year (2022)," said Tavárez.
Challenges persist
The high cost of construction and energy, as well as the delay in use and building permits, were the challenges that shopping center representatives agreed on and identified that they are currently facing.
"Right now the cost of construction is a limiting factor for both those of us who are going to do something as commercial property owners, as well as those of tenant improvements. As in other construction sectors, 25% of that cost goes into taxes and expenses related to patents, excise taxes and all the other government-related costs. In other words, it is something we have to look at very closely because there is an injection of federal capital that will still have a positive impact on the economy, but we have to take care of the costs of doing business and be very careful with electricity increases in order to continue growing," said González.
Growth continues
Contrary to the existing perception, in the main shopping centers, commercial occupancy remains above 90% and most of them have already agreed to establish new tenants.
Plaza Juana Díaz spokesperson, Mariví Pérez, informed that this center is at 96% occupancy and that a second project is being developed called Plaza Juana Díaz Sur, in which they already have a branch of Banco Popular, Wendys, Popeyes, among others.
Pérez mentioned that "we all want Puerto Ricans to return to the malls because it is very important, not only for the experience but also because it helps Puerto Rico, because it is money that stays and helps us to fight against the other things we have, such as high costs.”
Anthony Meléndez of Urban Edge, which manages Shop at Caguas and the Montehiedra Outlets, reported that Shop at Caguas is at 100% occupancy, while the Montehiedra Outlets are at 98% occupancy. Among the projects under construction, he mentioned that for Montehiedra, in the second quarter of 2024, Ralphs Food Warehouse, TJ Maxx and medical offices will be opening, while for Caguas, Leonisa, Perfume for You and Foot Locker are under construction.
On the other hand, the vice president of leasing and marketing of Curzon Puerto Rico, Carola Pierluisi, indicated that within its nine shopping centers, including Plaza del Sol, Plaza Río Hondo, Plaza del Norte, Plaza Isabela and Plaza Escorial, among others, most have over 95% occupancy, with the exception of Plaza Atlántico in Arecibo with 37% leased, when it is in the redesign stage.
When asked about projections for 2024, representatives of the various shopping centers agreed that sales are expected to maintain the same growth rate.
(0) comments
Welcome to the discussion.
Log In
Keep it Clean. Please avoid obscene, vulgar, lewd, racist or sexually-oriented language.
PLEASE TURN OFF YOUR CAPS LOCK.
Don't Threaten. Threats of harming another person will not be tolerated.
Be Truthful. Don't knowingly lie about anyone or anything.
Be Nice. No racism, sexism or any sort of -ism that is degrading to another person.
Be Proactive. Use the 'Report' link on each comment to let us know of abusive posts.
Share with Us. We'd love to hear eyewitness accounts, the history behind an article.