Retail Real Estate Market Slows Down 2,5 Times
15.12.2011 1693

Retail Real Estate Market Slows Down 2,5 Times

In 2011, 315 thousand sq. M of retail real estate was introduced on the Moscow market - this is 2,5 times less than a year earlier and 3 times worse than the same indicators for 2009, a Penny Lane Realty study in Moscow street retail for 2011 notes year.

Such a significant decrease in supply growth rates is explained by the fact that the deadlines for commissioning shopping centers with a total area of ​​more than 660 thousand square meters were postponed to 2012 year. The only large shopping center that opened in the 2011 year was Afimall City with an area of ​​179 thousand square meters.

The ban on construction within the Third Transport Ring and the orientation of the policy of the Moscow Construction Department towards the construction of retail facilities with an area of ​​up to 5 - 10 thousand square meters made many developers concentrate their activities in the regions: for example, in St. Petersburg, Ryazan, Orenburg, Chelyabinsk or Ufa. In 2011, the total area of ​​shopping facilities opened there amounted to 720 thousand square meters. In the next two years, this trend will only intensify.

Due to the extremely limited new supply, facilities that opened in 2011 or are to be completed in the next couple of years are causing a rush of demand from retailers. Experts note that retail operators already lack space: the most acute is the shortage of 100 − 500 square meters: they account for 41% of tenants' applications.

“Due to the shortage of quality supply in shopping centers, the demand for retail premises flows into the street retail segment, which we see both in terms of the volume of transactions concluded and in the number of requests for placement. The most popular rental premises during the 2011 year are the areas up to 100 sq. m .: here demand reaches 49%. In second place are shopping galleries in 100 − 300 sq. M. (23%), followed by premises measuring 300 − 700 sq. M. (18%), ”comments Alexei Mogila, director of the department of retail and regional real estate at Penny Lane Realty

The level of vacant space in the most popular shopping centers is 3 − 5%, while there is a constant rotation of tenants. At facilities in less demand, this figure reaches 10%. In the street retail segment, despite the growing demand from tenants, the number of vacant premises has not changed compared to the 2010 year. At the end of the year, rental rates in shopping centers increased by an average of 12%. In most cases, a monthly fee for premises of more than 500 sq m is charged according to the “fixed +% turnover” system. About this writes the site malls.ru

In 2011, 315 thousand sq. M of retail real estate was introduced on the Moscow market - this is 2,5 times less than a year earlier, and 3 times worse than the same indicators of 2009, noted ...

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