Landlords made concessions
24.12.2014 6527

Landlords made concessions

A sharp drop in the exchange rate of the Russian ruble entailed a flurry of tenants' appeals to the owners of high-quality commercial real estate on the revision of lease agreements. There is only one requirement - the conversion of rental rates from dollars to rubles at the pre-crisis rate. In case of disagreement, many of them threaten to move to a competitor.

“Under the onslaught of tenants and in the presence of vacant space in similar real estate objects, the most typical agreements boil down to the following:

fixing the exchange rate in the range of 38 to 45 rubles per dollar, says Sergey Chemerikin, director of the valuation department at Cushman & Wakefield. - the period of this fixation is set for one year with a possible revision of the lease terms depending on the economic conditions in the country that will develop over this period of time.

Thus, the "owner's market" became the "tenant's market". Tenants influence contractual relationships and commercial real estate market performance. How long it will last, only time will tell.

Under pressure from tenants, the real rental rate denominated in US dollars fell by 20-30%. Accordingly, dollar selling prices for high-quality commercial real estate should decrease by 30-40%. The fact of this decline has not yet been confirmed, since there are no deals on the market - the market froze in anticipation.

Rental rates in the street retail segment are also beginning to gradually decline. As of the end of the third quarter, it decreased by 25%: from 8 thousand to 6 thousand dollars per 1 quarter. m. per year., according to market research CBRE. "The current rate of devaluation of the ruble does not actually give Moscow a chance to stay in the top ten most expensive street retail in the world," says Valentin Gavrilov, director of market research at CBRE in Russia. On the other hand, it will create even better commercial conditions and opportunities for the entry of new players into the market. "

A sharp drop in the exchange rate of the Russian ruble entailed a flurry of tenants' appeals to the owners of high-quality commercial real estate on the revision of lease agreements. There is only one requirement - translation ...
5
1
Please rate the article

Materials on the topic

How Pareto's Law Works in a Shoe Retail Store

Analysis of the company's performance is an important quality of a manager. Many indicators in the retail business are subject to analysis, primarily - sales planning and inventory balances, KPI performance by employees, the effectiveness of marketing campaigns, ...
06.05.2025 4169

How to preserve a retail business in the fashion market in the era of marketplace hegemony?

The fashion segment has become the leader of e-commerce in the Russian market in the last few years. And, of course, this trend has affected the financial results of offline retail stores, which have suffered significant losses in revenue and profit.…
08.04.2025 2977

How to Conduct an Effective Strategy Session for a Shoe Business?

Every business owner imagines a cloudless future for his company something like this: high profits, ideal employees, loyal customers, competitors biting their elbows, and market conditions that are favorable specifically for his company. Do you want to get closer to…
09.01.2025 4092

How to Increase Shoe Sales in a Retail Store by 25% Through Effective Management

Almost every retail company has effective and ineffective salespeople, that is, those who always fulfill and exceed the sales plan and those who from month to month do not reach one hundred percent. And as a result, the sales plan sags in everything...
15.10.2024 6635

Difficulties in recruiting personnel and how to deal with them

Many managers believe that by providing decent wages and good working conditions, potential employees will come to work on their own, and each of them will become an excellent salesperson. Unfortunately, this is not the case: applicants come reluctantly, and…
23.07.2024 7391
When you sign up, you will receive weekly news and articles about the shoe business on your e-mail.

To the beginning