Real estate experts at Ecoofis Group summed up the year and highlighted three key trends in commercial real estate in the Russian capital: increased traffic in shopping centers located within walking distance of the Moscow Central Ring Railway (MCC), which was launched commissioned this year; revitalization of informal shopping centers located within walking distance from metro stations and strengthening the entertainment component of shopping centers.
1. Launch of the MCC as an impetus for the formation of a new trading ring
One of the key events for the capital this year was the launch of traffic along the Moscow Central Ring Railway (MCC), which, in fact, became the new metro line. According to the experts of ECOOFIS Group of Companies, this, in turn, contributed not only to improving the transport accessibility of some areas of the city, but also gave impetus to the development of retail real estate in the territories located within walking distance from the MCC stations. Due to the traffic of passengers who use the ring railway daily to travel to work and study, traffic to nearby shopping centers and street retail facilities has increased. As a result, low-liquid shopping centers received a "second life", and successful facilities were able to reduce the vacancy to a minimum and began to make plans for expansion. “For example, we have placed a small indoor farmers market in the territory of our shopping center“ Sunflowers ”, located at the exit of the RCCossa Boulevard MCC; in the future we plan to build several more street retail facilities,” says Andrey Kovalev. In the medium term, according to the experts of ECOOFIS Group of Companies, in free and suitable for development areas near the MCC stations, a significant number of retail outlets may appear, which, together with the existing shopping centers, will form a new “Moscow shopping ring”.
2. Revitalization of informal shopping centers
Against the background of a general decrease in the attendance of shopping centers as a whole, small non-format shopping centers located within walking distance of the metro, mainly in the sleeping areas of the capital, on the contrary, “felt” quite well. First of all, this was facilitated by three waves of demolition of trade pavilions recognized by the city authorities as self-building. Former tenants of these facilities had to look for alternative options and the most suitable of them were non-format regional shopping centers within walking distance from metro stations. Unlike conceptual malls, they have no restrictions on the composition of tenants, and therefore non-network retailers and even small private entrepreneurs can rent premises there. In addition, non-format shopping centers offer small-sized areas that are most in demand by this category of tenants, even at lower prices than in demolished pavilions. In addition, similar objects are suitable for them in the “format”. The basis of the shopping gallery in these shopping centers is made up of various stores with essential goods, which is exactly what tenants from the demolished pavilions specialized in. Therefore, many non-format shopping centers this year were able to minimize the vacancy rate and received new resources for further development.
3. Steady growth in the share of new formats
The crisis forced all market players to look for new ways for business development. In 2016, several new “branches” for the development of projects in the field of commercial real estate finally took shape at once.
Many large shopping and entertainment centers have actually turned into entertainment and shopping centers, where it is the entertainment sector that plays the role of anchor tenants. Shopping centers of a regional scale are gradually being transformed into “consumption centers”: in addition to convenience stores and consumer service enterprises, bank branches, travel agencies, dentistry rooms, beauty salons, and fitness centers open there. Some real estate companies also open branches in shopping centers based on the flow of visitors from the surrounding housing estates.
The most high-profile project of 2016 in this regard is the reconstruction of Moscow cinemas, which are planned to be turned into similar centers. However, the trend is also characteristic of existing shopping centers, where a similar concept is formed due to the rotation of tenants.