Tiffany is packing its bags in Madrid, but it's not going far. The American jewellery firm, owned by the luxury conglomerate LVMH, has rented new premises just a few metres from where it already operates in Madrid. Specifically, the firm will move from its current location on Calle Claudio Coello to one on Calle Serrano, just one block away.
Tiffany, which expects to open in August, has already started work to adapt the premises, owned by the Muñoz family. The premises were previously run by the Pedro Muñoz tailor's shop, founded in 1962 and specialising in men's fashion, which announced its closure at the beginning of 2023.
This move is similar to the one Tiffany did in Barcelona when, as reported by idealista/news, it rented another larger store on Paseo de Gracia. The group opened a 370 m2 shop on the ground floor of the Mandarin Hotel on Paseo de Gracia in 2010.
At the end of 2020, Tiffany moved into a 400 m2 premises at number 61 Paseo de Gracia, a location historically occupied by Caixabank and which was just a few metres away from its first store in the Catalan capital.
Tiffany landed in Spain in 2008 with one outlet in Madrid's Salamanca district, where it still operates. The premises, located on Calle Ortega y Gasset, has a surface area of 560 m2. In the rest of the Spanish market, the jewellery group is present with a store in El Corte Inglés department store in Madrid and another point of sale in Barcelona.
Tiffany has belonged to the LVMH group since January 2021, when it acquired the company for $15.8 billion, making it the biggest deal in the history of luxury so far. The firm, founded in 1837, operates more than 300 shops in prime locations around the world, such as Fifth Avenue in New York and the Champs Elysées in Paris.
The price of retail in Madrid
Calle Preciados/Callao is the most expensive location in Madrid, with an average monthly rent of €297/m2. Although its growth is relatively modest, at 1.69%, it continues to be an attractive area for new brands, registering four deals and the arrival of four new brands, with profitability of 3.50%, according to the latest report prepared by Ascana, a real estate consultancy specialising in luxury and high-end real estate. Calle Goya stands out in Madrid's commercial real estate market for offering the highest profitability, reaching 4.85%.
This figure highlights the relevance of Preciados/Callao in Madrid's commercial real estate market. The area remains a crucial commercial epicentre, attracting both local consumers and tourists, justifying its high average rent. The presence of well-known brands and the constant footfall of visitors ensure that this street upholds its status despite its high cost.
Moreover, Preciados/Callao's strategic location, close to other important shopping and tourist attractions, adds to its continued success. This balance between high cost and moderate profitability reflects a stability that is attractive to investors seeking investment security.
Meanwhile, Calle Goya stands out in Madrid's commercial real estate market for offering the highest profitability, reaching 4.85%. With an average monthly rent of €102/m2, Goya combines affordability with a solid growth rate of 3.96%. During the period under review, 16 transactions and the arrival of 13 new brands were recorded, underlining its dynamism and commercial attractiveness.
The combination of relatively low income and Goya's remarkable performance can be attributed to its strategic location and its ability to attract both local consumers and new businesses. The combination of relatively low rent and high commercial activity makes Goya a preferred choice for investors looking to maximise their returns in the competitive Madrid market.