2014_07_28_posts_cushman_nordeste_v3Up to June, Brazilian economic activity grew 0.6% while Northeast grew 4% (CB). This is one of the factors that keep the continued interest of investors in the sunniest region of Brazil. This is one of the reasons why new projects are implemented in the Northeastern market.

According to an exclusive C&W study, seven shopping centers are being built in the region, totaling over 235,000 m2 of gross leasable area. “Some of them are smaller malls, with 15,000 m² of gross leasable area, or even less, located in municipalities with less than 150,000 inhabitants, so contributing to the increasing number of commercial centers in the countryside”, explains André Accetturi, Capital Markets Manager, and he concludes: “There is still room for shopping centers in Brazil”.

But where to invest: in an old or a new shopping center? According to the executive, malls previously established normally have already concluded their maturation cycle and tend to present low vacancy rates and regular flow of customers. “This reflects the good level of sales for the shops and consequently good performance of the mall to investors.”

The new shopping and entertainment centers also offer the advantage of combining updated architectural styles, retail dynamics and wide reserved areas to major brands — often unavailable in existing shopping center —, to serve as anchors and with the goal of ensuring the appeal. “On the other hand, they need to captivate the consumer, and may pass through a longer maturation period with significant vacancy and lower presence of customers.”