LOGAN Venezuela attended the CAVECECO event “Vitrinas del País” in Caracas, solidifying its presence in the Venezuelan real estate market with the opening of a new valuation and consulting branch. Specializing in valuations and consulting, LOGAN aims to address accounting, financial, and auditing needs for institutional clients (oil and gas), including the retail sector.
Representatives from LOGAN participated in the event to engage with the local market. “Vitrinas del País” featured prominent brands and commercial groups such as Promotora Tántalo, Mantex, Grupo Sambil, Millenium Mall, Farmatodo, Saget, Tolón, Centro Traki, And Empresas Polar.
The event’s dynamics proved highly interesting, featuring speakers of national and international stature who shared their experiences, strategies, and insights into the sector, both within and outside the host country. Notable presentations included those from national and international speakers, including Mr. Luis Vicente León, the president of Datanálisis, who presented data on the environment and indicators of the management of shopping centers in recent years. He addressed the behavior of the GDP and its impact on the evolution of economic activities, highlighting an increase in heavy users and a higher frequency of visitors. These visitors have also shown a shift in activities within retail buildings, with a notable emphasis on the purchase of food and beverages, as well as their consumption in food courts. These have been the most common activities in the last semester of 2023. There is a significant incorporation of new anchors such as supermarkets, bodegas, food stores, and new restaurant concepts, including food courts and even rooftops, which seem to be the current strategies to attract consumers.
On the other hand, the slight change in the economy, with the availability of cash in foreign currency for Venezuelans, has had a positive influence. For 2023, the average consumption recorded per visitor has been $46.2 USD. This change adds to the importance that retailers have in offering shopping experiences to their potential customers. Crucial aspects of these real estate assets include their location, design, and infrastructure, including layout, decoration, lighting, and brand mix. For this reason, current owners and operators of these real estate assets have been working to reconfigure their spaces to adapt to new trends and consumer demands. Additionally, they have implemented technical strategies with machinery and equipment systems that ensure the continuous operation of services and comfort indoors, despite adversities faced due to external circumstances related to the provision of public services.
In another presentation, the Executive Director of ACECOLOMBIA, Carlos Betancourt Sanclemente, along with Claudia Itriago, Executive Director of CAVECECO, addressed the trajectory and trends of shopping centers in Latin America. These centers currently have the support of a regional guild, the Latin American Chamber of the Shopping Center Industry (CLICC), which integrates and promotes them under a common line of action.
Betancourt shared the challenges and experiences of the retail sector in Colombia, such as the slowdown in sales and consumption recorded at the close of 2023, vacancy levels similar to those of the pre-pandemic era, a decrease in the construction of new shopping centers with a greater emphasis on expansions and renovations, and budgetary challenges for 2024, such as inflation, increases in the minimum wage, adjustments, and high costs of public services, and the rise in interest rates, among others.
For LOGAN VENEZUELA, participating in this event has been a valuable experience, allowing them to gather new data that expands their knowledge of the shopping mall real estate market in the country. In the face of global economic challenges, uncertainty, risk perception, and capital costs, it becomes increasingly crucial to professionally and thoroughly monitor the appraisal of these real estate assets. Evaluating their assets through different methodologies, whether based on infrastructure, market, or income (rent roll), is essential for owners, investors, and lenders to understand the fair market value “As Is” according to expected return rates.
LOGAN will continue to focus on participating in events that contribute value and knowledge to its teams. Its mission is to provide appraisal and consultancy services that equip its clients with tools and support to make informed and accurate decisions. Its unwavering commitment to ethics and professionalism will persist in building strong relationships with clients, national associations, and institutions.
