Latin America

Focusing on Commerce & Community

With a tumultuous time not long behind us, the retail real estate sector across Latin America is once again thriving and looking forward to a bright future. Over the next few pages, RLI will highlight a selection of shopping centres and mixed-use developments throughout the region that pinpoint how well the market has rebounded and why its future is one to be excited about.

Shopping malls in Latin America are full of people and fully leased to pre-pandemic levels. This is the opinion of Suzanne Hollander in her article ‘Latin American Shopping Centers are “Staying Alive”’. She goes onto say that the socio-political unrest in Latin America creates a roller coaster ride of highs and lows of inflation, currency fluctuation and political uncertainty, however, despite these challenges shopping centres in these countries are vibrant centres of commerce and community.

According to the report: ‘Shopping Centers in Latin America – Statistics & Facts’, by statista, the first shopping centres appeared in Latin America in the late 1960s in Mexico and Brazil. Since then, boosted by a growing middle class, the shopping mall industry in the region continued to grow.
The report continues by saying that contrary to the traditional US model where shopping centres were anchored by major department stores like JC Penney or Macy’s, in many Latin Americas countries malls are commonly anchored by a variety of businesses such as grocery stores, fitness centres, healthcare facilities and office space.

With the launch of Rosewood São Paulo last year, Cidade Matarazzo by developers Groupe Allard is now fully open and is a quiet, green refuge in the heart of the Paulista Avenue region, one of São Paulo’s most lively neighbourhoods. The charming village of historic, landmark buildings, designed in 1904 and being restored by developers Groupe Allard, is an unprecedented venture in Latin America’s largest economic and cultural capital. The unique destination is home to a 45,000sq m park (including the urban requalification project), a 135,000sq m building area, the 56,000sq m six-star hotel complex operated by Rosewood Hotels & Resorts, a 10,000sq m House of Creativity, a 4,000sq m office building, a 28,500sq m retail village featuring 70 exclusive international brands, 34 restaurants that is capable of serving up to 15,000 meals a day and 2,200 parking spaces. To live in or visit Cidade Matarazzo allows one to revel in the serenity of an oasis while enjoying every bit of the glamour of Sao Paulo.

Reaffirming its commitment to the region and potential growth, developer Mallplaza last year resumed construction of Mallplaza Cali in Colombia after it was paused in its initial construction phase back in 2020 to the restrictions resulting from the Covid-19 pandemic. Mallplaza Cali will have a central location in the city, with important north and south connectivity, which will attract Cali residents. It will feature a great fashion proposal with national and international brands, such as Inditex (Zara, Berskha, Pull&Bear, Stradivarius), Decathlon, Homecenter and Cinemark. In line with the proposal for multiple uses and visiting purposes, the new urban centre will also have an Urban Rooftop that will incorporate a complete gastronomic offer. This new project will add 67,000sq m to the company’s leasable area and is scheduled to open in the first half of 2024.

The Velutini Group has presented the World Trade Center Santo Domingo (WTC), an ambitious project that will impose a new ecosystem for business, commercial and international relations, tourism, the exchange of ideas and entertainment in the Dominican Republic. In the Dominican Republic, WTC will be made up of what is now BlueMall Santo Domingo, JW Marriott Santo Domingo and the BlueMall Business Tower; to which will be added the expansion of BlueMall; two business towers: WTC 1 and WTC 2; and two apartment hotel towers called BlueMall Luxury Suites. WTC Santo Domingo will connect the Dominican Republic with the most important international business and networking networks and will position the country on the world map of business tourism. In addition, members will have access to innovative and important business opportunities that will boost their projects and businesses, allowing them to participate in the benefits of belonging to the exclusive network. The project will promote luxury real estate, business and tourism in the National District and it inaugurated its first phase in the first quarter of 2023 and of the entirety World Trade Center BlueMall complex will be completed by the last quarter of 2024, Velutini have reported.

A game-changing project for Guatemala continues to advance with a new stage and is on course to welcome its next project Antares. Being part of the future of the city that has everything will be possible in Antares de Cayalá. A new apartment complex with amenities, parks and green areas, entertainment, gastronomy, work, supermarkets and all the services for those seeking an urban lifestyle without limits and with all the comforts just steps from home. More than a decade ago, the master plan for Ciudad Cayalá was born and with it, a unique construction project in the country began. Grupo Cayalá seeks to change the way of living in Guatemala, following a traditional urbanism that is planned based on the needs of its inhabitants in an integral space. For this growth, the time has come to start the next stage of the City, which will be located in front of Paseo Cayalá and will adjoin Rafael Landívar boulevard and 19 avenue in zone 16. The complex will be built on a surface of 10ha and is projected to have a construction area of 413,000sq m which will be developed in the coming years.

Looking to redefine the Mexican retail and entertainment market, the Grand Outlet Riviera Maya is the latest and largest flagship for the MalltertainmentTM brand and a fresh new concept for the Riviera Maya market. Once completed later this year, the Grand Outlet will be the largest luxury outlet mall in Latin America, with over 90,000sq m, 185 tenants, nearly 3,000 parking places and an 80,000sq m lake. Being built approximately eight miles from the Cancun Airport, Grand Outlet Riviera Maya will be a major shopping, entertainment and dining destination for residents and tourists alike. The plan responds to post-pandemic consumer needs with a collection of flexible outdoor spaces connected via a circular promenade. Central to the design, water flows throughout the customer journey from cascades and fountains to the signature lakes and beach club. Water connects all experiences. The project is being developed and constructed by GICSA, a major company in Mexico dedicated to real estate development, with operations throughout the country. Grand Outlet Riviera Maya will feature in one location the best brands in the world while creating an extraordinary fashion and gastronomy experience.

The new Mitikah mixed-use development that opened at the end of last year in Mexico City by developer Fibra Uno includes the largest retail centre in Latin America. Global integrated design firm Stantec provided retail design as part of the larger project design team with Cesar Pelli (PCPA), Enrique Norten, SMA (Sordo Madaleno) and Colonnier y Asosciados. The expansive development will be home to residential and commercial space, including a movie theatre, major department stores and more than 280 retail spaces spanning five floors, adding up to nearly 120,000sq m. In addition to the five-storey shopping centre, the mixed-use complex features three high-rise towers in its current phase of development. The first building, all residential, houses 675 apartments for purchase and spans 876ft, over 65 storeys, making it the tallest building in Mexico City. The second tower offers 65,000sq m of office space for tenants and stretches above 558ft, over 35 floors. The third tower houses doctors’ offices. The meandering retail network spills out onto a generous public plaza with green spaces and a multitude of restaurants that help connect the site to the existing streetscape and urban fabric.

Distrito Armida is a new and upcoming multi-phase mixed-use community in the upscale city of Monterrey, Mexico, masterplanned and designed by JERDE and developed by GM Capital. Distrito Armida offers a full mixed-use project with premier office opportunities. To support these new offices, a full-spectrum community is conceived, one that includes all support programs for a fully serviced lifestyle. Situated in the south-eastern edges of San Pedro Garza Garcia, the location of Distrito Armida is uniquely positioned to create an essential, lively and unique offering. Views of the iconic mountain skyline of Monterrey, proximity to vibrant communities, a world-class business context and multitudes of retail and entertainment opportunities will all serve to attract young professionals, families and business owners with a modern outlook and appreciation for urban living. At the base of the scheme lies a vibrant, kinetic retail podium – filled with food & beverage destinations, amenity programs and boutique retailers. Scattered with a range of dining options, this permeable podium will be a local destination for apartment dwellers, commuters and more. The full completion date of this scheme is not yet available.

A project opening in spring this year by Thor Urbana is The Landmark Tijuana, which is a project that is located in the Golden Zone, the area with the highest real estate growth in the city of Tijuana in Mexico. The scheme will bring together the best shopping, dining and entertainment offerings unlike anywhere else in the area. It will be complemented by an exclusive residential tower, luxury hotel and class A+ office spaces to become the new place to live, work and play. The lifestyle centre will feature 308,000sq ft of leasable area, whilst the surround facilities within the scheme will include 154,000sq ft of A+ office space, 190 residences, a brand new hotel with over 200 rooms and more than 2,000 car parking spaces. The upcoming project will offer a unique mixture of cultural diversity from the region, integrating itself into an existing, bicultural, vibrant community in search of exceptional experiences.

Another scheme by Thor Urbana which is set to open its doors this July is The Park San Luis Potosi, which is situated in a chic up-and-coming neighbourhood in the southern part of the city. The scheme has been strategically developed near the Convention Center and in front of lush forest Tangamanga Park, the most iconic natural reserve of the region. The unique project will be host to a world-class lifestyle centre, hotel, class A+ office space and an incomparable residential tower. The project will bring together the best mix of fashion, cuisine and entertainment to offer a unique experience to all of its visitors. The Park San Luis Potosi will have over 715,000sq ft of luxury retail space and will surely become the city’s centre of attraction.

Pacifico Town Center is inspired by the majestic, natural beauty of its surrounding as a place of wonder, discovery and urban refuge. The project by JERDE for its client, developer London & Regional Properties is conceived as an “outdoor playground” with a strong emphasis on entertainment, nature and creative art as a catalyst to bring people of all ages together. The ongoing development is adjacent to an Air Force base and Pacifico Town Center is part of a larger live-work-play vision plan conceived by JERDE. Phase 1 of the Town Center development is located along the main Town Center Drive corridor and will bring over 200 units of housing and an office tower, along with an abundance of retail, F&B and entertainment options. Visitors will be treated to a unique and simple, rustic architectural sensibility that was inspired by nature, through the usage of natural materials in combination with creative building composition. A creative Art Walk forms the main street, enlivening the project with local arts and culture, whilst The River Walk is an “outdoor playground” for all age groups. An opening date is not currently listed.

The Camino Real shopping centre in San Isidro, one of Lima’s prime commercial and residential zones, will be refurbished and extended by developers Parque Arauco and Grupo Centenario to transform the existing centre and bring a modern retail, office and hospitality hub to Peru’s capital. The extension will include a three-floor department store, a food court, a hypermarket and a cineplex, served by seven floors of car parking. The reconfiguration will respect the district’s history and urban environment while adding a contemporary flavour. Being designed by Chapman Taylor, the dynamic interior spaces will incorporate a design motif which references the nearby Bosque el Olivar, a highly cherished green space in the bustling city. Sustainability is also a key design feature. An adjacent plot of land will be used to create a brand new shopping centre, with four floors of retail set around a central atrium. A hotel will also be provided and three office towers in the existing centre will be refurbished, bringing modern and high-quality workspace to the development, all connected by a green roof.