Capital streets are street retail leaders
Arbat took the 1st place in terms of occupancy of street retail premises in Moscow, and Tverskaya and Myasnitskaya streets were also leaders.
According to experts from JLL, according to the results of the 1st quarter of 2016, Arbat Street topped the rating of the most populated main shopping corridors of the capital: the vacancy rate on it decreased by 2,3 percentage points in the first three months of the year. - up to 6,3%. The top 3 streets filled with tenants also include Tverskaya and Myasnitskaya with the vacancy rate of 6,5% and 6,8%, respectively.
The reduction in the vacancy rate also occurred on the streets of Novy Arbat (up to 10,3%), 1st Tverskaya-Yamskaya (up to 11%), Patriarch's Ponds (11,1%), while, for example, on Nikolskaya the growth rate was recorded -28%. As a result of multidirectional dynamics, the vacancy rate in the market average remained at the level of the previous quarter and amounted to 12,5%. According to JLL experts, the areas on the main shopping streets in Moscow will continue to fill up in the 2nd quarter under the influence of restaurateurs, which will lead to a decrease in the vacancy rate in the market as a whole.
Today, cafes and restaurants dominate the market of the main trading corridors in Moscow: they occupy 31% of the structure of street retail tenants. In second place in terms of the number of open street retail facilities are banks and service companies (2%), which prevail on 17st Tverskaya-Yamskaya Street and the Garden Ring. Fashion retailers take 1rd place with a share of 3%. The greatest representation of clothing, footwear and accessories stores was recorded in Stoleshnikov Lane, on Nikolskaya and Petrovka Streets.
New brands are also attracting shopping corridors, so the Rolex store appeared in Theater Passage and the Charlotte Olympia luxury shoe store in Dmitrovsky Lane.
“The look of the center of Moscow has changed dramatically lately. Along with the expansion of pedestrian areas and their transformation, more and more retailers are considering opening flagship boutiques in street retail. The main trading corridors of Moscow attract foreign players, as soon as they enter Russia, as well as those already present in the country, for whom the central location is a confirmation of their status and market positions. The opening of the store in street retail, especially the flagship one, in addition to the obvious consumer audience, guarantees brand recognition among city residents and guests of the capital, ”commented Julia Nazarova, head of the street retail department at JLL in Moscow. “In addition to this, street retail premises are becoming more accessible: landlords are ready to discuss the rate as a percentage of the turnover for fashion operators, as well as fix it in rubles for long-term leases.”
Average rates for exhibiting premises * in the main trading corridors of Moscow
in the 1st quarter of 2016
|
Shopping corridor |
The average rate of rubles / sq. m / year |
|
|
|
||
|
Stoleshnikov per. |
215 000 |
|
|
Petrovka |
160 000 |
|
|
Nikolskaya |
150 000 |
|
|
Kuznetsk Bridge |
130 000 |
|
|
Patriarch's Ponds |
130 000 |
|
|
Arbat |
115 000 |
|
|
New Arbat |
95 000 |
|
|
Pyatnitskaya |
90 000 |
|
|
Tverskaya |
90 000 |
|
|
Butcher |
85 000 |
|
|
B. Dmitrovka |
85 000 |
|
|
Garden Ring road |
75 000 |
|
|
1st Tverskaya-Yamskaya |
60 000 |
|
* Rates of exposition of premises with an area of 100-300 sq. m, with a separate entrance and a showcase, located on the ground floor. In the case of multi-level premises or premises of a larger area, the rate is subject to correction. Source: JLL
JLL (NYSE: JLL) is a company providing financial and comprehensive professional services in the field of real estate. Around the world, company experts offer integrated services to owners, tenants and investors seeking to maximize their profits on their real estate assets. JLL is one of the largest Fortune 500 companies in the world; The annual turnover of the company is 6,0 billion US dollars, net of direct expenses - 5,2 billion US dollars. JLL has more than 280 corporate offices in 80 countries around the world, the company has more than 60 thousand employees.
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