The capital's real estate market froze in anticipation of the opportunity to return to trading. We are talking about the development of the so-called non-food sector. According to Moscow Mayor Sergei Sobyanin, this type of retail chains may start working on June 1. A part of services and consumer services will open - laundries, dry cleaners and others that do not require long-term contact between people. The mayor did not specify whether large shopping centers or only small street retail stores would open. According to Sobyanin, all relevant regulatory documents will be issued on the next day.
How will the tenants behave, will the prices for services and rent change? According to experts, by the end of the year, rental prices for such sites may decrease by 20-30%.
Larisa Eremina, Deputy Director of the Street Retail Department, Colliers International:
- According to our forecasts, if restrictions are lifted on the central streets of Moscow (including the Garden Ring), up to 55% of the total number of all tenants with an area of less than 400 sq. M. m. There are 3023 tenants in total with this area. Most retailers have gone into cost management, primarily by optimizing headcount, downsizing or closing stores indefinitely. Many companies are already looking for alternative ways to sell products and focus on the online segment. As a result, in the next one or two years, the number of hybrid trading formats may double. Taking into account the closure of many stores and the release of vacant space, rental rates by the end of the year may decrease by 20-30%.
Source: RBC Real Estate
