Distribution networks are rapidly developing in the “average minus” segment
23.02.2011 4949

Distribution networks are rapidly developing in the “average minus” segment

The main trends of the Moscow retail real estate market in 2010 were the active development of large Western department stores, the shift in demand for retail space in the fashion category from street retail to professional shopping centers, the filling of empty premises in new large-scale shopping centers, an increase in the waiting list in the most successful Moscow shopping centers, the loss of tenants in small shopping centers with a premium assortment matrix and the emergence of the need for reconception, a significant decrease in demand for new premises from premium and luxury brands and the rapid development of a number of chains in the “medium minus” segment - especially in the categories “Clothes and footwear”, revival of demand from such problematic category as “entertainment” in the previous 1,5 years. The trends were announced by the analysts of SA Ricci / King Sturge at a press conference dedicated to summing up the results of 2010 and the main trends in the commercial real estate market. The website asninfo.ru writes about this

"Despite declining demand from several tenant categories along the most popular retail corridors, current sales prices were approaching pre-crisis levels thanks to private investors," said Ilya Shuravin, Director of the Retail Real Estate Department and Partner at SARicci/King Sturge. "For example, on Myasnitskaya Street, sales prices reached $18 rubles per square meter, while on Stoleshnikov Lane, leases were signed at rates of up to $5 per square meter per year."

The main indicator of the year in the warehouse real estate market was the decrease in vacancy rates from 19% to 4% by the end of 2010. It is also worth noting the unprecedentedly low volume of newly commissioned objects in the history of the modern warehouse and industrial real estate market.

The total transaction volume in 2010, including leases/subleases, purchases and sales, and lease revisions/extensions, exceeded 1,1 million square meters. One of the main trends in 2010 was the increase in the average transaction size. At the beginning of 2010, the average transaction size was 9 square meters, and by the end of the year it had increased to 15 square meters. According to SARicci/King Sturge forecasts, rental rates will grow by 10-15% in 2011. Tenant demand is expected to increase in all areas due to the vacancy of properties in the most popular destinations. The relocation of many logistics and distribution companies outside of Moscow in connection with the latest changes in Moscow government policy will further spur rental rate growth. An increase in the number of speculative projects from 100 to 30 square meters is also predicted. m at a distance of up to 30 km from the Moscow Ring Road in the northern and northwestern directions, which meets demand.

The main trends of the Moscow retail real estate market in 2010 were the active development of large western department stores, the shift in demand for retail premises in the "fashion" category from ...
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