Russian shopping centers lose traffic and tenants
The Russian Council of Shopping Centers (RSTC) appealed to the governors of the regions with a request to help the retail real estate market, which is in an extremely difficult situation. Against the background of political and economic events, as well as the transformation of retail trade in Russian shopping centers, traffic is falling, and at the same time, vacancy is growing, writes fashionunited.ru
According to RSTC President Dmitry Moskalenko, shopping center attendance has decreased by 20% or more compared to the same period in 2021, and the vacancy of retail space is also increasing to an abnormal value, which today can be up to 25-30% of the amount of leasable space.
According to experts, rental income from retail real estate could fall by 35-45% compared to the pre-pandemic 2019 year, excluding inflation.
To support trade in the regions, the Russian Council of Shopping Centers has proposed the following measures to regional governors:
Do not charge or collect taxes on real estate of organizations and land tax until September 2024.
· During the moratorium, recalculate the cadastral value of real estate and land plots in order to achieve compliance with the cadastral and real market value for the current period.
· Reduce the coefficients used in calculating taxes on real estate and land tax by at least 50 percent compared to those previously established for the respective periods.
· Introduce a quarterly subsidy scheme for rental income losses in the form of grants.
· Fix or reduce the cost of utilities, including garbage collection services.
· Develop and implement, as a regional standard, a system of full subsidies for opening a store, restaurant, other business in a shopping center, in order to practically start such subsidies from January 1, 2023.
· Compensate for the cost of training replacements for employees who are temporarily absent from key staff positions in management companies.
The Russian Council of Shopping Centers (RSTC) appealed to the governors of the regions with a request to help the retail real estate market, which is in an extremely difficult situation. Against the backdrop of political...
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