According to the JLL real estate analytical agency, in the second quarter of 2020, the share of vacant premises on one of the main tourist streets of the capital Arbat increased by 4,6 percentage points. compared with the previous quarter, amounting to 14,3%.
The consequences of the decline in tourist flow and the ban on trade in connection with the Covid-19 epidemic were the closure of several souvenir shops, the MU-MU cafe, and the Sixties cafe-bar on Arbat. The occupied retail premises on the Arbat and several other operators of various segments were freed. As a result, quarterly rotation amounted to 5,8%, which is 2 pp below the 1st quarter.
“This location turned out to be one of the most affected among the central trade corridors in Moscow,” the JLL press release notes. Analysts do not exclude a further increase in vacancy in the Arbat.
“In the future, in this location, a further increase in vacancy is possible, since it is still not clear when the borders open and the tourist flow resumes. In addition, restrictions on the operation of the retail and restaurant segment were lifted not so long ago, and the purchasing power of the population will not be restored to its previous level for some time to come. Some operators who were able to survive the suspension of operations can optimize their networks in the future during reduced demand, ”comments Ekaterina Podlesnykh, head of the JLL street retail department.