Since the beginning of this year, an increasing number of retail property owners in Moscow began to set rental rates for their premises in rubles, not being tied directly to the dollar exchange rate. This is also true for street retail format premises.
Today in the capital market no more than 25% of lease agreements are concluded in rubles, about 50% of agreements are concluded in foreign currency, but the owner and tenant fix the upper and lower boundaries of the "currency band". In the regions, about 70-80% of lease agreements for retail space are concluded in rubles, and rates have been initially displayed in national currency for a long time.
“The transition to ruble settlements is primarily beneficial for retail real estate tenants, since they receive their proceeds in rubles, and with a sharp fluctuation in the dollar exchange rate, they cannot quickly raise prices in order to pay off the automatically increased dollar rent,” says Anton Belykh, Managing Partner of DNA Realty ... Therefore, tenants have always insisted on ruble contracts, but in times of over-supply demand, persuading owners to switch from a relatively stable dollar to an unstable ruble was extremely difficult. Now, due to a decrease in demand and an increase in the volume of supply on the market, tenants are increasingly able to achieve at least a narrow “currency corridor” or even conclude a lease agreement in rubles ”.
According to the expert, now operators are already appearing on the market who, in principle, do not sign dollar lease agreements, and owners are forced to listen to such market wishes. Unless, of course, we are talking about top-end shopping centers or premises near the metro, where landlords can still dictate their terms to tenants.