Morocco’s Shopping Center Boom: Retail Parks Gain Ground as Market Evolves

Shopping centers have emerged in Morocco in recent years, reaching 17, the latest being Arribat Center, carried by Foncière Chellah. There are two economic models for these shopping centers. These are retail parks, which remain low in Morocco, even though they have several players in the market and are more adapted to the Moroccan context. "Moreover, the market is increasingly moving towards this model," said Jérôme Carrère, managing partner at Camus Solutions Immobilières, a specialist in commercial real estate, Asset Management and real estate portfolio management, and malls which remain "prestige operations", reports LavieEco.

This observation by the professional is explained by several reasons such as cost optimization, especially rent. Since for the retail park, a rent costs an average of 150 DH/m² compared to 400 DH/m² in a mall per month. In addition, commercial real estate in Morocco is overwhelmed by neighborhood shops, highly appreciated by Moroccans, due to proximity, payment facilities and the relationships that develop between merchants and customers. However, these stores are increasingly being abandoned by Moroccans in favor of new modes of commerce. Thus, it is essential to develop retail parks that bring together all the consumer’s requirements in one place, in order to avoid the dispersion of traffic.

In the future, the operationalization of REITs should lead the commercial real estate market to improve and the market players to reorganize. "Operators will therefore be able to refocus on their activity and get rid of their real estate assets held, in favor of these investment bodies that will guarantee them an annual rental yield," explained Mr. Carrère. Thus, it is imperative to set up retail areas providing rental income with precise principles or international standards allowing REITs to position themselves.