MAPIC 2023 takeaways
For long-established events there is always a danger that the format and/or the content can go stale. Pleasingly, MAPIC hasn’t fallen into that trap and this year’s gathering – under the broadly encompassing umbrella title of ‘The Age of Responsibility’ – absolutely had its finger on the property industry pulse, including a renewed focus on urban retail. And although the Croissette and Palais isn’t as packed as sister conference MIPIM, the ability to network with high level decision-makers, who would be otherwise almost impossible to meet up with face to face, made the trip to Cannes thoroughly worthwhile.
I was also pleased to hear, time and time again throughout MAPIC, the word ‘community’ being used in relation to new retail/leisure-led mixed use schemes, as this is something P-THREE has championed for some time. As part of the same discussion, minds continue to be exercised on how best to make new (or repurposed) spaces more immersive and interactive for consumers. P-THREE suggests the SEE standard, incorporating the three key characteristics of: Sustainability, Entertainment and Experience.
Disseminating the most important points from MAPIC is always a challenge, as so much relevant material is presented within a short time span. I therefore thought it might be helpful to share the key takeaways from the P-THREE team:
Repurposing retail and leisure space was undoubtedly the driver of many conversations at MAPIC this year and indeed P-THREE hosted a conference session devoted to the topic (‘Repurposing with purpose’),with excellent panel speakers from LandSec, APSYS and Enjoy Strategy providing useful insights, which we are happy to share in more detail – just contact us.
A lot of the chat in Cannes was focussed on how retail and leisure property can overcome the admittedly formidable challenges that repurposing can present. There was broad agreement that retro-fitting shopping centres in particular is both difficult and expensive. Flattening an existing centre and replacing it with a genuinely mixed use scheme might often be simpler, but is it a responsible option? This also raises the question of when repurposing effectively becomes redevelopment – an important distinction that we’ll be covering in a future Perspectives next year.
A common thread to many discussions was the interesting comparison to the office sector, where repurposing has long been a feature. This is in large measure due to occupiers, led by their own ESG objectives, leading change from the front as they push for more sustainable office space. Retail and leisure occupiers, on the other hand, are still using very different (and arguably less ‘green’) criteria for their occupational decision-making. And it perhaps doesn’t help that their end users (ie consumers) are often ambivalent and/or simply unaware of the real estate characteristics and implications of their chosen shopping and leisure experiences.
That said, repurposing retail and leisure space seems to have risen rapidly up the agenda across Europe and I think it will be a firm fixture going forward. With that in mind I was pleased to see that Battersea Power Station was crowned winner of this year’s MAPIC Best Urban Regeneration Project. For me, it cemented one of my own observations, that London is widely regarded within the European real estate industry as a leading exemplar of progressive retail and leisure development.
I was also pleased to hear, time and time again throughout MAPIC, the word ‘community’ being used in relation to new retail/leisure-led mixed use schemes, as this is something P-THREE has championed for some time. As part of the same discussion, minds continue to be exercised on how best to make new (or repurposed) spaces more immersive and interactive for consumers. P-THREE suggests the SEE standard, incorporating the three key characteristics of: Sustainability, Entertainment and Experience.
For those of us who have been in property for a while (and I suspect that includes many of us!), it was exciting to see new (developer) operators expanding their presence in the retail marketplace, with names like France-based Nhood and Swedish-based Ingka Centres making a marked impact. And, talking of new faces, MAPIC’s dedicated LeisurUp programme demonstrated how many new operators and how much innovation is out there in the leisure sub-sector.
It would be wrong to suggest that everyone attending MAPIC was looking at the sector with rose-tinted glasses. There were some earnest debates about the short-term performance of the investment market given on-going difficulties in accessing finance. And concerns about cost inflation are relevant for any kind of commercial development – repurposed or not. This realism was a refreshing, albeit sober, counterpoint to the good news stories surrounding the prime, outlet and luxury markets.
MAPIC has deservedly earned its position as an important date on our sector’s calendar. I and the rest of the P-THREE team look forward to next year’s event as well as pushing ahead into 2024 with a renewed sense of purpose as the retail, restaurant and leisure markets undergo a period of fundamental change.
Article by P-THREE Team
Photo credit: MAPIC
