The growth of shopping centers in Moscow was the lowest in recent 10 years
The increase in the supply of shopping centers in Moscow in 2011 was a record low over the past 10 years. In the current year, only five facilities with a total area of 297 thousand square meters were put into operation, and the retail space increased by 169,5 thousand square meters, according to the report of the Knight Frank company. The total supply of retail space in Moscow amounted to 8,07 million square meters (retail space - 4,35 million square meters).
Sergey Gipsh, Partner, Regional Director of the Retail Real Estate Department comments: “Our forecasts regarding the development of the retail real estate market in 2011 were fully justified. As expected, the state of the market throughout the year was determined by two main trends: an extremely low level of supply growth and high activity of retail operators, which resulted in a shortage of quality retail space and an increase in rental rates. "
Restrictions on development in Moscow, due to the policy of the Moscow authorities to review investment projects and the ban on construction inside the TTK, determined the shift in the interests of developers in the sleeping areas of Moscow and in the Moscow region. So, for example, in August the Grenada shopping center located in the city of Lyubertsy was commissioned, in December the first stage of the Otrada shopping center will open in the Mitino area of Moscow.
The desire of operators to increase the efficiency of retail chains, including improving the location of stores, against the background of low growth rates of supply, has led to a focus on demand for high-quality facilities with a good location, analysts say.
As a result, the most sought after shopping centers have formed “waiting lists” for several years to come, while other, less successful facilities are even ready to lower rental rates in order to keep tenants. On average, the market share of vacant premises decreased to 2,5%.
As for the market of retail and retail premises, throughout the 2011 year, one could observe an increase in the interest of retail operators in the segment, which was largely facilitated by the supply shortage in Moscow shopping centers. The most active expansion in the segment was continued by food service operators and grocery stores, the malls.ru website writes.
The increase in the supply of shopping centers in Moscow in the 2011 year was a record low over the last 10 years. In the current year, only five facilities with a total area of 297 thousand sq. M. Were commissioned, and ...
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