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Florida 'low cost': The classic pedestrian street is reborn in a new version - El Cronista
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June 14, 2024
The traditional shopping street has almost full occupancy, but with a marked change in profile. What are those looking for who today are willing to pay the dollars that each square meter of a premises is worth, which already doubles the floor to which it had fallen in the pandemic.
Florida 'low cost': the classic pedestrian street is reborn in a new version
By Ricardo Quesada
Deputy Editor of Supplements and One Shot
For decades, pedestrian Florida was one of the most sought-after corridors for companies to install their flagship stores . The large commercial premises that were added to department stores and the Galerías Pacífico were coveted by the main national and foreign brands, which wanted to position themselves in the Buenos Aires market.
Although, after the pandemic and with the rise of electronic commerce, it seemed to have lost its appeal , the pedestrian street today is in full resurgence, with almost total occupancy and a marked change in profile .
"There is an important change. Today, triple A brands, those that have more than 20 or 30 branches, no longer need to have as much presence on the street because their online sales have multiplied. And that is where other companies, perhaps less acquaintances, they took the opportunity to disembark ," explains Matías Poczter , director of the Commercial Area of Baigún Realty.
One of the brands that have established themselves in Florida in recent years is LeUtthe, known as the "Argentine H&M" , thanks to the low prices of the clothing it sells. This label joined others with the same profile, such as Cuesta Blanca, which has one of the largest stores in the commercial corridor, on the corner of the pedestrian street with Perón.
Less is more
The trend , adds the specialist, is to rent smaller premises . In this segment, occupancy is almost total. Among the items that have increased the most since the pandemic are fashion accessories and items for cell phones .The average asking price in Florida is US$24 per square meter (m2) , according to a report by real estate agency LJ Ramos. This number is just under half of the US$50 per m2, the average in the pedestrian area before the pandemic and a little more than double the floor it reached in 2022.
" Large stores today are more difficult to rent . Many owners hope to maintain the profitability of 10 years ago and the market does not validate this. However, there are brands that are looking for meters. Today we rent the premises where Compumudo operated, in Florida and Corrientes , to a not so well-known optician that wants to gain positioning ," said Poczter.
Florida continues to be one of the must-see tours for tourism
The options that the owners of this type of premises have are not many. In some cases, they can make subdivisions and, if it has more than one floor, use the one at street level for commerce and the others for other types of areas, such as gyms.
" It may also happen that there is someone interested in having an important front , but leaving the rear meters unused. But that tenant will not want to pay what those rents historically cost. What is clear is that the owners have to give in if they want " your property stops being empty ," said Jorge Gayoso , broker of the Local division of LJ Ramos.
Full occupancy
Currently, there are few places available on the pedestrian street. most of them, near Plaza San Martín . In Gayoso's opinion, since 2022 the pedestrian street has not stopped gaining occupancy."It may not be what it historically was, one of the most elegant shopping streets in the country. But today it is very good and in very diverse sectors such as clothing, gastronomy and services . And, in addition, we must add Galerías Pacífico , which concentrates the best brands ," he explained.
The target audience for companies that settle in Florida is varied . On the one hand there are tourists , who are the most sought after by leather goods stores and leather clothing houses. But also to those who work in the area , who are slowly returning to the offices.
"What we see is an offer for all budgets. There are low-cost options and others for deeper pockets," he concluded.
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