Head of Southern Europe Region at Generali Real Estate

Benedetto Giustiniani Head of Southern Europe Region at Generali Real Estate

commercial sPaces, in-dePth analysis of cashflow and effort rate indisPensable

The difficult period experienced by the retail sector has highlighted the importance of performing an increasingly in-depth analysis of the cashflows generated by the retail spaces and the effort rate. Given the downturn in retail space turnover caused by the Covid emergency, Generali has intensified estate, the mix of entertainment and experience undoubtedly stands out. In the physical store, the customer looks for everything that cannot be found online, so making the shopping experience engaging and personalised will play an increasingly crucial role in ensuring people continue to have a reason to visit a

«making the shOpping experience increasingly engaging and persOnalised will play a crucial rOle in attracting custOmers tO the shOp and thus maintaining significant revenues»

its analysis of tenant quality, business sustainability, the current and future impact of e-commerce on different merchandise categories, etc. Thus, everything that influences the value retention of real estate. For the foreseeable future, we expect high street retail to regain value due to the return of retailers’ development strategies and the shopping centre sector to become increasingly selective, to the benefit of the dominant structures in terms of catchment area, brand mix and increasingly innovative experience and entertainment content. For these shopping centres, we expect a gradual return to pre-crisis values, while for those lacking these characteristics, we do not expect a significant recovery in value. On the contrary, they will find it increasingly difficult to be attractive, given the expansion of e-commerce and, consequently, to recover previous occupancy and footfall levels. Among the new trends in retail real shop, and thus in maintaining significant revenues. This trend certainly occurs in the world of fashion but also, for example, in electronics. This is the case of the futuristic Lenovo showroom in our property in Corso Matteotti in Milan, where the customer is accompanied in an immersive experience that goes from coffee to the latest technology. On the project front, we are mainly involved in high street retail in Milan. One of the most important projects is the full redevelopment of the Cordusio/Mercanti complex: this will include the construction of several important retail spaces on the street level of the 5-star Gran Melià hotel and a large retail space

▲Lenovo Space in Corso Matteotti, Milan ►Rendering of Mercanti 21, Milan

Generali Real Estate

that will house a major international fashion brand. Another high quality project of ours is in Via Manzoni, where the building to be occupied by Rocco Forte House will also have some luxury retail spaces on the corner with Via Spiga. Finally, looking at the post-Covid scenario, thanks to the trends we have talked about, there is currently and there will continue to be no shortage of opportunities for investors and specialised operators who know how to adapt to the evolution taking place in the retail sector. Conversely, where retail fails to evolve, there is a real risk of being absorbed by the online marketplace. •