Survival training
Summing up 2020
This year has taught us not to plan far ahead, and it is a tiny bit scary to sum up the results of the year, what if? Nevertheless, let’s take a look at the preliminary results of the retail real estate and retail markets have achieved this year and take a risk of looking into the future.
of 2020. Approximately 231k sq. m are still expected to be put into service, yet the results will only be drafted in January.
The largest projects opened in Moscow in 2020 have been a mall within Schelkovsky hub, Dream Island Mall within Dream Island amusement park, and Kvartal West Mall within a mixed-used development.
Analysts with Knight Frank notice there is a high level of vacant spaces, up to 40%. This has been a recent trend, as they would normally fill up within the first two years after the launch. Based on the results of 2020, vacant spaces put in operation two years ago in Moscow shopping centers make 5.3%, while the total vacant spaces are 10–11% that is twice as much as in Q4 2019. According to Marina Malakhatko, Head of Retail Group Leading Business in Moscow region with CBRE, the vacant spaces will rise in Moscow in 2021 driven by tenants moving out of space areas of 50–300 sq. m. Successful malls located inside the city center will keep a low level of vacant spaces.
In 2021, CBRE analysts expect Moscow to see 500k sq. m of new retail areas; 30% of those are located outside the city center and belong to ADG group. They are Gorod Kosino shopping center (GLA 74,000 sq. m), Paveletskaya Plaza shopping center (GLA 33,000 sq. m), and a shopping center within Seligerskaya commuting hub (GLA 54,000 sq. m). A shopping center being a part of mixed-used development is as common as ever, together with infrastructure retail and shopping centers as parts of commuting hubs, and neighborhood shopping centers as part of community malls.
Capital city debuts
The year 2020 has added 249.3k sq. m in nine good quality projects, according to Knight Frank. Despite the fact that the year has been difficult for everyone, there is an increase on the results of 2019. It is worth pointing out that within the 10 months of 2020, around 49% of the projects supposedly put into operation were delayed, and some were moved for the end of 2020. Approximately 231k sq. m are still expected to be put into service, yet the results will only be drafted in January.