Interest in retail real estate in residential areas is growing in St. Petersburg

According to the consulting company NF Group in St. Petersburg, more than half of the commercial space (53%) in business-class residential complexes is filled within two years from the moment the building is put into operation. After two years or more, occupancy on average reaches the optimal 75–80. Often, the first tenants in new business-class properties are pick-up points, which accounted for 11% of all openings since the third quarter of 2023.

In St. Petersburg new business-class buildings, 27% of retail premises on display are objects worth 15–25 million rubles, and 48% of the supply are objects worth more than 40 million rubles. At the beginning of April 2024, the weighted average supply price in the segment increased over six months by 8%, to 348 thousand rubles. per sq. m. The weighted average rental rate did not change and amounted to 2 rubles. per sq. m.

The occupancy of commercial space by tenants on the first floors of business-class residential buildings in St. Petersburg depends on the time that has passed since the date the building was put into operation. In the first year after construction is completed, 90% or more of the space remains vacant. Within one to two years, the first floors of the complex are usually half occupied. After two years or more, occupancy reaches the optimal 75–80%. At the same time, there are objects where the share of unoccupied space remains high (50% or more) even two years after the completion of construction. This may be due to the low liquidity of the premises, the discrepancy between their size and current market requirements, as well as inflated rental rates or sales prices.

At the beginning of April 2024, the area of ​​available premises in business-class residential complexes in St. Petersburg ranges from 30 to 350 sq. m. m. At the same time, the most popular format among tenants and buyers is 50–150 sq. m. m.

From the third quarter of 2023, the weighted average supply price of commercial space in residential complexes commissioned on the primary market increased by 8% and amounted to 348 thousand rubles. per sq. m. In St. Petersburg new business-class buildings, 27% of retail properties on display are objects worth 15–25 million rubles, while almost half of the supply (48%) is for objects worth more than 40 million rubles.

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The weighted average rental rate remained at the level of September 2023 and amounted to RUB 2. per sq. m per month (not including taxes and utility bills). However, this figure varies greatly depending on the region. For example, in the Moscow and Vyborg regions they are the lowest - 100 rubles per sq. m. m. per month, while in the Admiralteysky district the weighted average rate is the highest - 1 rubles per sq. m. m. per month.

The requested rental rates (from the owners) are in the range of 1–000 rubles. per sq. m per month and depend on the location of the premises in the residential complex, its area and quality of finishing.

“Since the third quarter of 2023, 97 new retail outlets have appeared on the first floors of business-class residential complexes,” notes Anna Lapchenko, head of the retail real estate department of the consulting company NF Group in St. Petersburg. - The most frequently opened establishments were in the beauty and sports sector (29%), gastronomic projects (19%), order pick-up points (11%), grocery stores (6%) and alcohol markets (5%). It is noteworthy that often the first tenant in new business-class complexes is the order pick-up point. In general, we are seeing great interest in street retail in residential complexes and note that previously operators who traditionally considered premises only in the city center are now showing active interest in more remote locations with a suitable audience. Retail space can generate returns of up to 9–11% per annum, with premises located in developing locations deserving the greatest interest.”