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A ban on building in central Moscow coincided with the rapid recovery of the retail market, the most rapidly recovered from the crisis. As a result, after a “washout” of vacant space in existing high-quality shopping center peak demand for the most expensive areas of the top brands in the segment moves street retail in the capital. But the bright future of advanced conventional goods merchants for the average consumer can see the vast expanses of the Russian provinces, the experts of the analytical center “Indicators of the real estate market.”

A number of foreign and Russian companies announced plans to expand the network of retail stores not only in the Moscow region and beyond. According to Praedium Oncor International, Spanish retailer Mango in this year, double the pace of expansion in Russia. During 2011 the company will launch 25-30 own and franchise clothing stores. The group of companies Bosco di Ciliegi, one of Russia’s largest sellers of luxury goods, plans to open in 2011, 31 sportswear shop Bosco Sport in Russia. Chain of shoe stores “Footwear of Russia” plans to invest in the development of 1.5 billion rubles.

Retail store chain of children’s clothing and toys Gulliver and “Wunderkind” plan to actively develop. In the SEC AFIMALL City opens the regular trading facility network of children’s products “Limpampo” as well as new store of Mothercare. Group of companies “Detsky Mir” plans for 2011 – 2012 gg. Open about 50 new stores. In the SEC “Mega Khimki” single-brand boutique opened BabyBjorn, who became the first such project in Russia and companies in the world. Petersburg network, “Okay” and Krasnodar retailer “Magnet” are planning to open in 2011 – 2012 gg. A number of new hyper-and supermarkets. Premium network of supermarkets “The Alphabet of Taste” is planning a 2011 run at least seven new stores in Moscow and the region. In addition, the retailer is considering the possibility of development in St. Petersburg, Kiev and Ekaterinburg.

At the same time the Russian market and new companies emerge, such as, for example, some retailers of brand new clothes. In the newly opened AFIMALL City appeared flagship store of the legendary fashion brand Banana Republic, which is part of Gap Inc. In the complexes of “Mega”, there were also tenants, representing new brands. Opened its first store in Russia, American Eagle Outfitters, and the first outside the U.S. Single-brand shop of the legendary American brand Converse.

According to Praedium Oncor International, a company frozen in time of crisis development programs, are again ready to expand. Trading network of premium-class “Globus Gourmet” this year decided to open four stores in Moscow and St. Petersburg, retailer of home appliances and electronics “Technosila” after two years of hiatus in the development and ready for opening new stores.

We intend to develop and catering operators. The Russian chain of coffee shops “Chocolate” plans in 2011 – 2012’s to open 60 schools, starting about 30 stores per year. Russia’s first fast-food restaurants have opened in the Wendy’s Old Arbat Street, a shopping center “Capitol” and the SEC “Mega – Teply Stan”. The company’s plans – opening a few more restaurants before the end of 2011

Some networks are going to strengthen our market position and attract customers, opening stores in new format for yourself. The company “Euroset” opens hypermarket of household appliances and digital electronics for the squares in the order above the average size of the standard salon “Euroset”. New large-format stores opened in Moscow and Russian regions, and the design and organization of the space the store are made in accordance with the new format of the company.

Centers of trade “is not always enough for everyone”

“The operators of the retail market continued active development in the Moscow real estate market. Open the first stores in Moscow for new brands. Revival of demand has led to a reduction in the proportion of vacant premises, primarily in shopping malls. However, growth rates do not meet the growing demand for quality retail space “- suggests Zbrueva Olga, Head of Customer ASTERA in alliance with BNP Paribas Real Estate.

Proposal for retail space in the shopping center is formed mainly due to the small number of projects declared to be commissioned as early as 2008 – 2009 gg. But unsold at the planned time due to the crisis.

Now these contracts are actively annulled by the Government of Moscow, and the new are not enclosed. The number of new shopping center projects is not enough to meet demand. As a result, retailers are adapting development plans to the realities of the market and as an alternative to access the premises format street retail. Competition between retailers and the lack of prospects for substantial growth in supply in this submarket led to an increase in rental rates for retail space in this format, says Zbrueva. Bulat Okudzhava wrote, “gingerbread sweet is never enough for everyone.”

Street Retail

True, analysts at Blackwood is not yet ready to talk about the sharp increase in activity in the segment of street retail. According to them, in the second quarter is traditionally kept low for the summer months, the activity of key players. Rental rates vary only slightly, often at the expense of the requested rates for the least liquid of the room. Characteristic of the I quarter of the revival of the market, reinforced statements Moscow government to ban trade in elemental and new construction of shopping centers in the central part of town, came to naught (see “The ban on construction in the center – populism or reality?”).

According to Penny Lane Realty, rising prices and rental rates in retail segment of the street was 30-40% depending on the location of the object. “Despite the steady rise in prices and rents, which was outlined from the last year, talking about returning to the market the seller still too early. Price indexes are still below those observed in the pre-crisis 2008 “, – said director of commercial real estate Penny Lane Realty Alex’s grave.

The activity of most retailers, announced its plans to expand the retail chains have been influenced by increased demand and an increase in rental rates. In the first quarter of 2011, there was an increase of demand for retail space in the segment of shopping centers, and in the street retail, and rental rates have shown a steady rise. According to Praedium Oncor International, vacancy rate in the segment of high-quality shopping centers has decreased from 6.5% in I quarter of 2011 to 5% in June and is close to the zero point in the segment of street retail.

In the segment of street retail are traditionally the most popular areas near the metro, as well as travel and walk-through streets and avenues of Moscow: Tverskaya, Petrovka Kuznetsk Bridge, Pyatnitskaya, Butcher Street, Prospect Mira, Leningrad, Lenin, Kutuzov.

To date, according to Penny Lane Realty, average rental rates in this segment vary – from $ 1, 500 to $ 4, 000 per sq ft per year for premises located in major trade corridors of the capital. On minor streets are kept rates at $ 300-1800 per sq m per year. Sales price of $ 14 000 $ 20 000 per sq ft – a major trade corridors, and from $ 2, 500 to $ 4, 500 per sq ft – on secondary streets.

Rental rates for space in the segment of street retail, the most demanded (located in places with high pedestrian traffic), almost reached the 2008 level, according to the Praedium Oncor International. What can be said about objects located far beyond the main trade corridors rates for such objects have not changed significantly and most of them remained at the level of 2009, the average rental rates for retail space in the street within the Garden Ring are $ 800-4500 for a square. M per year, in the area of?? the Garden Ring to the Third Transport – $ 600-2500 per 1 sq. Km. M per year, from the Third Ring Road to Moscow – $ 300-1100 per 1 sq. Km. M per year. Sales price at current purchase and sale in the retail segment of a straight reach $ 8, 000 – 33 000 per 1 sq.m.

Cheaper options

The most important signal from the authorities in the field of low-cost segment of the retail space for carrying social function was to support the mayor Sergei Sobyanin ideas Trade Organization on the ground floors of houses, buildings.

“Basically, I think it’s implemented thing” – the mayor said at a meeting with the leaders of major Russian and foreign companies in trade and services, “Interfax”.

The mayor stressed that the commission will Moscomarchitecture to the design of houses has been provided an opportunity to place on the first floor retail space. He added that a similar design in the future must be implemented together with the developers of investors.

The Moscow authorities intend to abandon the term non-stationary small-scale retail trade through the development of small family stores, said in turn the head of the Department of Trade and Services of Michael Orlov. “In the near future in Moscow should be a lot of small conveniently located, including the family, shopping. To a large extent, they will specialize – butchers, dairy shops, bakeries, restaurants, and other household goods “, – he said.

In his opinion, at present the development of small shops hampered by the lack of necessary facilities, as well as confidence in the business’ long-term, predictable rules for the room. ” Also, according to officials, the development of such stores underdevelopment prevents the wholesale level.

Segment of street retail will flourish in the sleeping areas, according to Alex’s grave. “Now there is an active housing, and almost all developers are adopting a new approach to the development of commercial premises, the essence of which – the use of technologies used in the leasing of shopping centers. Developers quickly not only receive cash flows from the effective implementation of the land, but also the positive social effect. While there are pilot projects in Moscow, but the development of this approach, we expect and in the regions “, – says the expert.

Key market indicators of retail space format “Street-Retail” in Moscow, II square. 2011

Average rental rates *, $ / sq.m per year

In 2246 within the Garden Ring

Between the Garden Ring and the TTC 3625

Between TTC and the Moscow Ring Road (sleeping area) 1020

Average selling price * $ / m

Within the Garden Ring 13 900

Between the Garden Ring and the TTC 4800

Between TTC and the Moscow Ring Road (sleeping area) 2450

Source: ASTERA

* The rental rates and sales prices are influenced by such factors as the presence of a number of metro area the size of the room, his condition, etc., which in this table are not reflected.

In Moscow, the presence of increasing goods de luxe

The world market of luxury goods out of the financial crisis much more quickly than expected. And Moscow has pulled back to the level of prices the most expensive boutiques in Europe. To such conclusion experts Jones Lang LaSalle’s research in key premium shopping areas in Europe – “Glamour in all his glory – the 100 most famous luxury brands in European cities.”

London New Bond Street – the most expensive shopping street in Europe, where rents reach 7900 euro per square meter per year. On the Avenue Montaigne in Paris, rates could reach 7, 500 euros per square meter. M, and in Moscow on Stoleshnikov Lane – 7015 euros per square meter

Robert Bonvel, managing director, head of retail space in the EMEA region of Jones Lang LaSalle, said: “The luxury sector is one of the most internationalized in the market of retail space, almost all brands are focused on global expansion strategy. Most of them have serious plans to move to Asia and emerging markets as a whole, thereby creating a new class of consumers with good incomes and an appetite for luxury goods. However, the international composition of the traditional luxury shopping areas of London and Paris forced the number of brands to increase investments in already-formed and mature Western markets, expanding and upgrading existing stores. ”

Leading international luxury group recently reported double-digit growth in sales, and some – even record results. International network brand significantly contributed to this success – the business grew rapidly in Asia, especially China. The luxury sector has bounced back in Europe in 2010, one third of total profits for some brands has been obtained thanks to high sales volumes in Italy, France, Britain, Germany and Russia.

Anna Savenko, Deputy Director of Retail Department Jones Lang LaSalle Russia & CIS, stresses: “Moscow is the capital of the fashion world on a par with Paris, London, Milan. Number of brands represented here, in no way inferior to Europe. ”

The highest density of international luxury brands can be found in Paris, noted in www.irn.ru. 100 of the most prestigious and expensive brands sold in more than 150 stores, once again proving that the French capital is the undisputed center of European fashion and luxury goods. Only London has similar densities – 125 stores, which represented the top 100 brands. In Milan, this number does not exceed 90, in Moscow and Rome – 66 and 59, respectively.