After a significant improvement in June, the footfall in Spanish malls managed by MVGM, the Dutch property management company, dropped sharply in July, raising concern that the sector may not enjoy a rapid recovery.
Data released by the company, which oversees 1.1 million square meters of shopping space in Spain, showed that traffic in its malls peaked during the week from June 29 to July 5 when it reached 729,405 people, representing a 32 percent decline from last year’s levels. But, during the following weeks the percentage fell, reaching a trough of minus 46 percent compared with last’s year level in the week running from July 20 to 26. The following week, from July 27 to Aug. 2, the percentage improved to minus 39 percent.
Traffic was virtually non-existent in March and April due to a Covid-19 related lockdown and started to pick up in May. In the last week of May, traffic was down by 69 percent year-on-year, in the malls managed by MVGM.
Over three-fourths of leases in its shopping centers are under renegotiation, with 51 percent of tenants asking for a rebate, 35.6 percent to waive rents, 3.4 percent applied for a deferral of payments and nearly 3 percent terminated the lease and closed their businesses, according to MVGM.