In the third quarter of 2016, the level of vacant space in street retail on the Garden Ring in Moscow reached a record 17,6%. The central street of the capital is becoming uninteresting for retailers due to the lack of parking lots for vehicles and a decrease in the flow of customers, - note the experts of the international consulting company Knight Frank.
Changes in the appearance of the central streets of the capital in connection with their large-scale reconstruction carried out this summer, changed the situation with regard to their attractiveness to retail operators.
The percentage of vacant premises on the central shopping streets in the third quarter of 2016 averaged 11,1% (12,1% in the 3rd quarter of 2015). At the same time, on Myasnitskaya Street the share of vacant space does not reach even 1%, while on Novy Arbat it rose to 11,1%, which in previous years was typical of low-demand intra-district streets.
In trade corridors on major metropolitan highways, the vacancy rate is on average 11,9%. The highest vacancy rate was recorded on Kutuzovsky Prospekt - about 16%.
The lowest percentage of free space is observed on “pedestrian” streets (at a level of 7-8% throughout the year) and on some Moscow streets adapted for pedestrians (Myasnitskaya St., Maroseyka St., Pokrovka St.).
Most retailers working in the fashion segment prefer to open retail outlets in shopping centers. In the structure of central shopping streets with automobile traffic, the share of the premises occupied by them over the past 5-6 years has decreased by almost ten times (up to 7%). However, over the past year, there has been a slight increase in this indicator due to the fact that for some retail concepts, such as showrooms for young designers, youth clothing stores, shoes, etc., the areas on the central highways of the capital are again interesting, - Knight Frank analysts say