Moscow's street retail moves to dormitory areas
03.07.2014 6169

Moscow's street retail moves to dormitory areas

Street retail in Moscow is moving from the center to the sleeping areas of the city, experts at NAI Becar noted. Both large network operators and private owners of medium and small businesses prefer to place their stores outside the Central Administrative District.

The premises of the street retail format are by far the most popular type of commercial real estate, although rental rates for them are steadily growing. The volume of supply of premises of this format is increasing mainly as a result of their construction in new residential complexes and microdistricts in Moscow. Compared to the city center, here street retail has a higher profitability.

Large network operators prefer “street-format” premises located outside the central Moscow district, since the main customer flow of such retailers is made up of residents of residential areas.

Investors are also interested in street retail on the outskirts of the capital. This is due to the fact that there the premises are much cheaper than similar ones in the center of the capital. In addition, acquiring space at the construction stage, investors may not be afraid of downtime. Typically, such areas initially already have potential tenants, or with competent promotion of tenants can be found very quickly.

The cost of renting street retail format real estate in residential areas depends on the purchasing power of residents of the district, location of the premises, the presence of shop windows, ceiling heights, the ability to organize outdoor advertising. On average, rental rates range from 300 $ to 1500 $ per square meter.

Street retail in Moscow is moving from the center to the sleeping areas of the city, experts at NAI Becar noted.
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