Retail real estate market.
In the second half of September in Moscow, the retail real estate market exceeded the value for the same period last year by 1% and continues to slowly recover.
In Moscow, the vacancy rate at the end of the third quarter may be 10-11% versus 12.2% in the second, and by the end of the year it will drop to 9%. There is a forecast expecting vacancy in Moscow to remain at 12–13%. The market has successfully passed the first stage of replacing departed brands, containing the increase in the share of empty space.
Success for developing Russian players is active scaling of business and testing of new formats. The further vector of market development depends on this process. There are no prerequisites for an increase in rental rates in shopping centers yet. The market saw sporadic deals at higher rates for fit-out spaces previously occupied by international brands. In Moscow, the maximum figures now, according to her, reach 180 thousand rubles. for 1 sq. m per year in large facilities and 100 thousand rubles in regional ones.
Rates remain stable for street retail premises. Although the demand of potential tenants in the third quarter, according to her, exceeded the figure for the same period last year. This is explained by the development of retailers, their desire to open flagship stores, and the emergence of new restaurant concepts.
Positive trends in the street retail segment, indicating that the market is adapting to current conditions. This trend could lead to a decrease in vacancy in Moscow in December by 0.5 percentage points year on year, to 14%. The dynamics may be accompanied by a moderate increase in rates, by 3–5% year on year.
In the Moscow office market in July-September, the volume of office rental and purchase and sale transactions amounted to 603 thousand sq. m. m. This is more than twice the value for the same period last year - 274 thousand sq. m. m. Although the vacancy level has remained virtually unchanged over the year and now stands at 8.3%. According to the results of the third quarter, the Moscow office market was active, explaining that the main demand during this period was formed by state-owned, construction companies and service sector market players. The largest volume of transactions, according to consultants' observations, were concluded in the central and western parts of the city. Tenant activity, according to the expert’s observations, is concentrated primarily on class B premises. This is due to the erosion of liquid vacant supply and an increase in rates in the more expensive segment.
The average cost of renting offices in Moscow is now 25.7 thousand rubles. for 1 sq. m per year for class A premises, 18.1 thousand rubles for class B. The requested rates demonstrate stability throughout the year.
No comments yet