Malls design 6% expansion in 2018

The billing of the Brazilian shopping centers grew 6.2% in 2017, in nominal terms, a little below the industry forecast, which expected high of 7%. For 2018, the expectation is an expansion in line with last year, from 5.5% to 6%, and the opening of over 23 enterprises.
The projections were released yesterday by the Brazilian Association of Shopping centres (Abrasce), who sees 1 2018 even challenging for the market. "It's not going to be a wonderful year, because we still have many difficulties in the political and economic framework, but we waited an evolution," says the President of Abrasce, Glauco Humai.
If the most optimistic forecast the sector should close this year with a turnover of approximately $178 billion, compared to R R $167.75 billion registered last year. The entity also provides for an expansion of 2% in the number of shops operating in the centres, after a high of 2.3% in 2017 – which led the total points of sale, compared with 102,300 99900 the end of 2016.
Of the 23 projects that should open its doors this year, 17 will be inaugurated in the inner cities, which, in the view of the President of the entity, shows that the trend for reflection seen in the sector in recent years should continue. "From 2015 we have most malls located in the interior. This trend should continue in the years to come, because we have a very large space outside the capital and with good conditions, "he explains. Abrasce data show that 54 percent of 571 shopping centers are located in the inner cities of the Brazilian States.
Performance in 2017
Regarding the performance of 2017 the entity asserts that "was positive, considering the context of crisis and political instability". Still, the high nominal (without discounting the effects of inflation) of 6.2% was below the last forecast and also from the historical average of industry expansion. From 2007 to 2014, the Mall market grew almost every year above the two digits (the only exception was in 2013, when the advance was of 8%).
Last year, the sector also presented a number of openings less than initial forecast. 12 new enterprises were opened against the expectation of 30 openings – which was publicised in January 2017. Humai ponders that it is natural that the number of openings decreases during the year and that the movement can also occur in 2018, with the opening of a portion of the Mall 23 provided for getting to 2019.
In terms of avoidance, closed last year with an average rate of 5.7%, well below the record. According to the Chairman, the market already came to present an average vacancy of 3.5%.
The increase in the level of unoccupied spaces in malls is explained by Abrasce the inaugurations of the past few years, as new centres opened the doors with high vacancy rates.