The share of vacant premises on the shopping streets of St. Petersburg has significantly decreased
According to the consulting company Nikoliers, in the first six months of 2022, the vacancy rate in the key shopping corridors of the Northern capital was 9,4%, which is the lowest level since the start of the COVID-19 pandemic. The greatest activity of tenants was observed on Nevsky Prospekt.
According to the results of the first half of 2022, the share of vacant premises on the key trade corridors of St. Petersburg amounted to 9,4%, having decreased by 0,2 p.p. over the six months. At the moment, the vacancy rate has reached its lowest level since the start of the COVID-19 pandemic. A decrease in the share of vacant premises was observed on Nevsky Prospekt, where vacancy decreased by 2,1 percentage points over six months. − up to 11,4%. Nevsky is the only highway where the number of openings significantly exceeded the number of closures in the first half of the year (33 vs. 23). On Bolshoi Prospekt P.S. the share of vacant premises has not changed, remaining at the level of 6,5%. The increase in the indicator occurred on Staro-Nevsky Prospekt up to 13,1%, Bolshaya Konyushennaya (up to 11%) and Rubinshteina (up to 3,6%) streets.
As of the end of June, 17 premises remain temporarily closed, 10 of which are occupied by representatives of the fashion segment. Of the retailers that have suspended their activities, renting premises on the central streets of the city, so far only the Starbucks chain has announced its final withdrawal from the Russian market. McDonald's outlets were sold to a Russian licensee and changed brands, while the rest of the players continue to retain their premises and staff.
During the first six months, more than 70 new openings took place on the key trade corridors of St. Petersburg, while 59 premises became vacant. Compared to the same period of the previous year, the number of closures was at a comparable level, and the pace of openings slowed down by 26% - in the first half of 2021, about 100 new tenants appeared on five shopping streets. The most significant decrease in the rate of discoveries was observed on Staro-Nevsky Prospekt and Bolshoy Prospekt P.S. (13 rooms less on each of the highways).
In the structure of closures for January-June 2022, the catering (41%) and clothing and footwear (19%) segments are leading. Representatives of the banking sector significantly reduced their presence on the central trade corridors, continuing the trend towards optimization - in six months, five bank branches stopped working (8% of the total number of closures).
In terms of the number of openings, representatives of the public catering sector have traditionally been the most active; new stores of Russian designers continue to appear in the clothing and footwear segment. So, on Bolshoi Prospekt P.S. in the first half of the year, five such stores appeared - these are the brands Nude Story, Kasumov Handmade, Design Dealer, Dreamwhite, UNIQUE FABRIC.
The requested rental rates showed different trends depending on the change in the exposure structure. Almost on all corridors, the minimum limits of rates decreased by 10-30%, while the maximum ones, on the contrary, increased by 30-40%, which indicates an increase in the supply of high-quality and liquid lots in the exposition.
“Petersburg remains one of the main holiday destinations for Russian tourists, which increases the attractiveness of the central highways for tenants of various segments. Many brands continue to develop: tenants now have a choice of premises in terms of location, budget and quality for opening new outlets in the city center. If foreign companies decide to leave or reduce their presence in the Russian market, the vacated premises in top locations will be of particular interest to new tenants,” comments Yulia Kuznetsova, Deputy Director of the Retail Real Estate Department at Nikoliers.
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