RETAIL MARKET REVIEW

Transcription

1 Москва RETAIL MARKET REVIEW The results of the 1 st quarter of 2013

2 2 / COMMERCIAL REAL ESTATE / RETAIL / The results of 1 st quarter of 2013 year ALEXEY FILIMONOV CEO ASTERA in alliance with BNP Paribas Real Estate KEY INDICATORS ENTER OF NEW PREMISES VACANT PREMISES RENTAL RATES THE MAIN TENDENCIES In Q the tendency of quality shopping center decreasing continues. During the first 3 months no shopping mall from 8 declared by developers was launched. Most of all, the commissioning of several is scheduled into Nonetheless according to plans of developers the volume of quality street retail supply should increase in 1,5-2 times until 2015 Regarding spaces building restriction in center of there is a decentralization of retail real estate market of the capital. Most of new objects are constructed beyond the Third Ring. These include Vegas Crocus City, Vegas Kuntsevo, Butovo Mall, SC Vesna, Reutov Park. The level of rental rates in the segment of shopping centers in the whole market has not changed significantly. The owners of existing shopping centers pay more attention to the problems of professional management of the objects. In situation of increasing competition the owners try push marketing policy, aimed not only to attract consumers, but also to converse them to customers. The main indicators of retail premises market in shopping centers, Q Total stock retail premises in on results of Q г. Total area, sq.m Leasable area, sq.m Average rental rates in street retail premises market in, Q Average rental rates*, USD/ sq.m/ p.a. Inside the Garden Ring Between the Garden Ring and the Third Ring Between the Third Ring and Ring Road (dormitory districts) * Rental levels and sale prices are influenced by different factors such as proximity to subway stations, size and condition of premises etc., which are not reflected in the chart Dynamic of new retail space commission in, , total area, thousand of sq.m * Regarding low volume of new quality supply many of chain operators are changing the focus to spaces like street retail and retail spaces on the 1 st floor of business centers. In Q the most active tenants on the 1 st floor of business center were restaurants, food stores, jewelry operators, flowers stores and services. On street retail market rental rates have not changed significantly. However, many objects are difficult to rent because the rental rates are still overpriced by tenants. To make a deal it needs to make a compromise on price between owner and tenant. * Projected volume of commissioning of new objects in 2013 is calculated on the basis of declared plans of developers

3 3/ COMMERCIAL REAL ESTATE / RETAIL / The results of 1 st quarter of 2013 year SUPPLY Regarding the draft plans of developers, in Q the volume of quality supply of retail market should rise on sq.m. ( Vegas Crocus City, Vegas Kuntsevo, Rio on Leninsky avenue, outlet Fashion House, MFC River Mall, SC MC, SC Mandarin, SC Tsaritsino ). In fact these objects were not commissioned in time. Most of all, commissioning of several of them were rescheduled up till 2014 ( Vegas Crocus City, Vegas Kuntsevo, MFC River Mall ). Today total quality shopping centers volume is sq. m. Considering rescheduled plans of developers, in 2013 the capital shopping center market should be replenished by 18 quality SC of total volume of sq.m. If all projects are finished in time the volume of 2013 will be more than in 2005 for 600 thousand sq. m. and total volume of shopping center can be sq.m. New objects of commercial real estate to be commissioned in 2013 The biggest shopping centers to be commissioned in 2013 «Vesna» - Q The name of the object Type Address GBA, sq.m GLA, sq.m Vesna 84 km MRAR Gudzone SC Kashirskoe highway, RIO Leningradskoe av., Райкин Плаза ТРЦ Sheremetievskaya str., Отрада, 3 оч. ТП Pyatnitskoe h., 7 km, Fashion House Moskvorechie Vnukovo Outlet Villadge Brateevo MOLL Outlet Outlet Leningradskoe highway, 12 km MRAR Kashirskoe highway, 52 Near the airport Vnukovo Borisovskie ponds,26/ SportEX SC 5 Cable str River Dail МFC Paveleckaya bund., * МC SC Mikluho-Мaklaya, Mandarin Montazhnaya, * Izmaylovsky SC Pervomayskaya, , ,8 Alphabet SC Bulvar Dmitriya Donskogo, district Watercolor South SC Kirovogradskaya, 9, B Sunshine 9th Parkovaya street, / Zarizino SC Luganskaya, In total * On MFC objects is considered only leasable retail area In Q it was announced about the beginning of several new shopping center in. For example, near metro station Voykovskaya construction of the special SC for household goods Home Store of sq.m. was started. Company TPS Nedvizhimost plans to construct of sq.m. on Khoroshovskaya road. SC «Gudzone» Q «RIO» - Q «Raykin Plaza» - Q4 2013

4 4 / COMMERCIAL REAL ESTATE / RETAIL / The results of 1 st quarter of 2013 year DEMAND Most of street retail market players keep the high level of activity. Chain retailer has big plans on development and look for new quality spaces for their shops, restaurants, cafes. Several operators experiment with new formats of trade. Foreign retailers, particularly catering chains develop actively on Russian market. For example American fast food chain Quiznos announced entering on Russian market; South Africa restaurant chain Nando s plans to open in and St. Petersburg 20 shops until 2014; company Fazer plans to open the chain of café in format of sq.m. in and St. Petersburg. The structure of demand In Q in a great demand among potential tenants of shopping centers were the premises sq.m. It is connected with the high rotation of tenants in the premises of such format. Distribution of the tenants demand in accordance with format of premises in shopping centers in Q Among tenants of street retail the most active in Q are catering operators, food store chains, banks, services. Medical enterprises showed the high interest to built-in premises. New plans to enter the market In the begging of 2013 some companies declared their plans to enter the market: Group Ginza Project in collaboration with British cook Jamey Oliver declared plans to open restaurants in in format of street retail; Company «NTK Town Restaurants» till the end of 2013 plans to open 10 coffee shops under brand of «Lavazza Espression» in ; Danish jewelry brand «Trollbeads» enters the Russian market. First shop was opened on February 2013 in «Atrium». They are planning to develop in St. Petersburg, Ekaterinburg, Kazan; Company Toridoll Corporation opened first restaurant of Japanese kitchen on Pyatnitskaya street in January 2013 in ; Company Electronic systems Alcotel (trade mark texet) declared the opening the first store of digital technique in March 2013 in ; Company RestConsult opened first restaurant under the brand Meat&Fish in format of street retail in March The restaurant is situated on the 1st floor of residential complex Shuvalovsky (Lomonosovsky av.). In search of new format In the begging of 2013 retailers continue to try new formats: Trade chain of premium segment Azbuka vkusa plans to build 15 own SC in and Leningadskaya districts during next 5 years. New SC will be up to 4 thousand sq.m. The main directions of project development today are Novaya Riga, Kievskoye and Minscoye roads, Small Ring. O Key plans to open 100 stores of discounters chain Da in and region till Group of companies Obuv Rossiy opened in first store Westfalika in new format, adapted to SC. The store is located in SC Filion. The volume of the capital shoes market for mono brand chain Westfalika Obuv Rossiy evaluates 80 shops. Fitness club chain World class plans to start the project of launching fitness club discounters. Today the name of new project is closed. Glorya Jeans plans to realize the project of online selling. Utkonos plans to close all their offline stores and completely switch to online selling. As there is deficit of spaces for hypermarkets in, some chains (for example O Key, Lenta, Castorama ) started to develop city format of their shops (supermarkets from 1,5 till 2 thousand sq.m.). As well today many chains developing large formats, prefer to rent the land and to build to suite. This approach allows to efficiently organize logistics for stores, parking for required car places and load and unload zone for trucks. Brands planning to enter the market of New platforms

5 5 / COMMERCIAL REAL ESTATE / RETAIL / The results of 1 st quarter of 2013 year Retailers actively continue to explore the regions: Group of companies Obuv Rossiy plans to extend the chain of stores in East Siberia, Far East, Urals, Volga region, North-West. More than 30 stores will be opened in new regions as Baykal region, Buryatiya, Hansy-Mansy, Bashkortostan, Archangelsk and Murmansk regions. The company will actively increase the amount of its shops in Primorsky and Amur regions. The majority of all opening stores will be named Westfalika. Next 5 years the company Leroy Merlin plans to find land for construction of 15 stores in 15 cities of Central federal district of Russia. Extension of chain will probably take place in cities like Tula, Lipetsk, Kaluga, Ivanovo, Tambov, Bryansk, Belgorod, Vladimir, Orel, Smolensk, Kursk, Stary Oskol, Ryazan. In 2013 retailer Auchan plans to open in Russian regions 10 new supermarkets Auchan (within the development of chain). Retailer Hannes & Mauritz plans to open in Russia about 325 new stores till the end of In Q the main event on the street retail market was deal on selling Metropolis for total volume sq.m. by Capital Partners. The buyer was the fund Morgan Stanley. The sum of the deal is closed. RENTAL RATES In Q significant increase in rental rates was not observed both in the segment of shopping centers, and in the segment of street retail. Unsubstantial rise of rental rates on liquid premises of street retail format was noticed in main shopping corridors of central part of the city. This was related to the entrance on the market in February 2013 of some objects with high rental rates. VACANCY RATE Vacancy rates in the beginning of 2013 have not substantially changed because there was not enough supply. Regarding the professional objects like SC Okhotny Ryad, SC Evropeysky, Metropolis, SC Atrium still the waiting lists exist. The level of vacancy rate in these objects is up to 2% and it is caused by planed rotation of current tenants. In other shopping centers the vacancy rate is 3-10% and it depends on place, object s conception and current point of its life cycle. Rental rates on the premises street retail on the main trade corridors of, Q Rental rate, Trade coridor USD/sq.m per year Tverskaya str Petrovka str Arbat str st Tverskaya-Yamskaya str. Leningradskiy avenue Bolshaya dmitrovka str Leningradskiy avenue Kuznetskiy Most str Myasnitskaya str Kutuzovsky avenue Maroseika str Mira avenue Pyatnitskaya str Anchor tenants rental rates in shopping centers in the Q1 of 2013 Business category Rental rate*, USD/sq.m/p.a. Cinema DIY Foods Household goods Goods for children White goods Clothing and footwear * Rental rates are indicated excluding VAT and operational expenses Rental rates distribution on the profile of trade galleries tenants in shopping centers in Q г. Business category GLA, sq.m Rental rate*, USD/sq.m /p.a. Public catering Clothing and footwear Perfumery, Cosmetics Accessories, jewelery Cellular network * Rental rates are indicated excluding VAT and operational expenses

6 6 / COMMERCIAL REAL ESTATE / RETAIL / The results of 1 st quarter of 2013 year ABOUT ASTERA COMPANY ASTERA an alliance member of BNP Paribas Real Estate an international consulting company, provides professional services in commercial and élite residential real estate. The company has been actively operating on the Russian market since Company s offices are located in, Saint-Petersburg and Kiev. ASTERA is a partner of BNP Paribas Real Estate company in Russia and the Ukraine. BNP Paribas Real Estate a leading international company in real estate sphere, which occupies leading positions among the consulting companies on the European market in terms of turnover volume by the results of Alliance with BNP Paribas Real Estate gives the ASTERA an opportunity to represent the clients interest abroad and to attract foreign investment to Russian development projects. In ASTERA company's portfolio are retail, office, industrial, warehouse and hotel facilities, including large multifunctional complexes and commercial premises in the format of street retail, separate buildings, projects "for the client» (built-to-suit) and land. In ASTERA company's portfolio there are more than 500 implemented projects of strategic and investment consulting, exclusive database of 30,000 objects in all segments of commercial real estate. Since 1992 ASTERA consultants have realized more than 6,000,000 sq.m of commercial premises and concluded over 9000 transactions in the real estate market in Russia and in the Ukraine. ASTERA clients are more than companies, including major international and russian financial, investment, commercial and industrial corporations and networks. ASTERA provides a full range of services for investors, developers, owners, tenants and buyers of commercial real estate: Consulting services Investment consulting Real estate assessment Brokerage services Pre-brokerage Representation of client s interest Legal services Promotion of real estate objects Reputation of ASTERA is confirmed by membership in the leading Russian and international professional associations: The guild of Managers and Developers of commercial and industrial real estate Russian Council of Shopping Centers Russian Guild of Realtors Russian-British Chamber of Commerce The Association of European Business Office in Тel.: +7(495) Fax: +7(495) Office in St.Petersburg Tel.: +7(812) Fax: +7(812) Office in Kiev Тel.: +380(444) Fax: +380(444) marketingspb@asteragroup.com