One in eight stores on Moscow's best shopping streets are empty

One in eight stores on Moscow's best shopping streets are empty
By bne IntelliNews March 3, 2016

One in eight stores in Moscow's best shopping locations are empty thanks to the collapse of consumerism in Russia, according to a report by real estate agent Jones Lang LeSalle (JLL).

The vacancy rate on Moscow's main drags at the beginning of 2016 was 12.5%. Least affected were the central streets of Myasnitskaya (7.1%), Pyatnitskaya (7.9%) and the Oxford Street of Moscow, Tverskaya  (7.4%), the report says.

According to JLL, annual rental rates on the most expensive shopping street in Moscow, Stoleshnikov Perulok are now RUB220,000 ($3,000) per square metre for premises typically sized 100-300 metres, about a fifth of the pre-crisis level. The second most expensive was Petrovka (RUB195,000) and then Kuznetsky Most (RUB180,000).

However, demand remains high for street-level retail outlets, cafes and restaurants, which make up 30% of the tenants in the city centre.

Retail has been whacked by a 9.5% fall in real incomes in 2015 that translated to a 15.3% fall in retail turnover in December, although retail sales have recovered somewhat in January with the rate of contraction in turnover falling to -7.3%.

Data

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