02-07-2003S. AMENGUAL

On the day another long standing jewelers put a sign that it is for rent, it has been confirmed that Jaime III remains one of the most expensive commercial streets in the country.Jaime III, Palma’s famous high street, is the fourteenth most expensive location inSpain to rent a commercial property - a square metre will cost an average of 1,080 euros.
According to the MainStreets Across the World report complied by Cushman  & Wakefield, retail space in Jaime III costs the same as the Rambla de Catalunya in Barcelona.
And, while many stores have changed hands on the high street, some retail spaces are empty and have been for a long time with the high rental rates putting would be retailers off moving into Jaime III as consumer confidence remains fragile along with the economy.
Rents have risen
Nevertheless, neither the recession nor the state of the economy has prevented property owners from putting up retail rents by an average of 2.3 percent over the past year.
Ten years ago, for example, a square metre on Jaime IIIwas going for 660 euros. And, it appears that rental rates are going to continue rising, driven by demand for central stores by luxury brands and global high street chains which demand pride of place.
According to the report, one of Palma’s biggest attractions to the retail sector is that it is an affluent tourist destination and that has caught the eye of the luxury retail sector.
And, over the past year, the Palma 365 Foundation has worked hard at promoting Palma as a shopping destination, especially now that the city centre is allowed to open 365 days of the year.
What is more, such is the demand, the luxury retail sector is spilling over into the Borne.
The Borne
Despite a few shops sitting empty along Jaime III, demand for prime retail space is rising, hence why the Borne has been transformed over the past few years with international brands opening up retail outlets along the street which has also been brought to life by new bars and cafés being allowed to expand their terraces.
The most expensive street in Spain is Porta de l’Angel in Barcelona where a square metre of retail space will cost 3,240 euros, nearly three times the rate along Jaime III.


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