Vacancy rate in Moscow shopping centres remained at 8% in Q2 2016 (RU)


According to JLL estimates, 180,000m² of quality shopping centre space was completed in Moscow in Q2 2016, comprising Riviera SC (100,000m²) and Riga Mall (80,000m²). Still, total completions in H1 2016 have dropped by half in comparison with the same period of last year.

Overall, Moscow quality shopping centre supply is likely to increase by 430,000m² this year, which is 24% less on a y-o-y basis. Key announced schemes include Metropolis shopping centre (2nd phase), Oceania, Khorosho!, and Butovo Mall.

Moscow Shopping Centre Completions

moscow-shopping-centre-completions-1
  • Facebook
  • Twitter
  • Google+
  • Pinterest
  • LinkedIn
  • Gmail
  • VKontakte

“In spite of new shopping centres openings, vacancy rate remained the same as in Q1 2016 at 8%. This shows that both retailers and landlords have become comfortable in the current market conditions. Strong retail chains keep expanding, opening new stores in recently commissioned malls. Landlords adjust by providing flexible lease terms to tenants. As a result, we see gradually rising occupancy in shopping centres that entered the market during the tough period of 2014-2015,” Tatyana Malyanova, head of shopping centre agency, JLL, Russia & CIS, commented. “At the same time, tenant rotation is rather high: due to appearance of new premises retailers continue to close down less effective stores, find new locations and change format of their stores.”

Nevertheless, JLL analysts expect a slight rise in vacancy rates, up to 10% in H2 2016 due to the expected completion of 250,000m² of new retail space.

Overall Vacancy Rate in Moscow Shopping Centres

moscow-shopping-centre-completions-2
  • Facebook
  • Twitter
  • Google+
  • Pinterest
  • LinkedIn
  • Gmail
  • VKontakte

“Together with the expansion of existing retailers, new foreign brands enter the Russian market. According to our calculations, 19 new brands have appeared on the market in H1 2016. Among the newcomers are Italian cosmetics store KIKO Milano in Okhotny Ryad shopping centre, Italian fashion brand Armani Exchange in Aviapark, Mega Tyopliy Stan, Mega Khimki and Avenue South West.” Maria Shpakova, retail market analyst, JLL, Russia & CIS, notes. “In the near future, Dutch underwear brand Hunkemoller intends to open its doors in Mega Khimki, British footwear brand L.K.Bennett is expected to appear in Metropolis, and Israeli coffee shop Cofix is to enter the Moscow market as well.”

Retailers on the Russian Market: Entries and Exits

moscow-shopping-centre-completions-3
  • Facebook
  • Twitter
  • Google+
  • Pinterest
  • LinkedIn
  • Gmail
  • VKontakte

Source: europe-re.com

 

Author: Hassan Khazaal

Share This Post On

Submit a Comment

Your email address will not be published. Required fields are marked *

Top

Pin It on Pinterest

Share This

Share This

Share this post with your friends!