Rent rates in Kyiv's shopping centers not to change in 2014, could fall by 10-15% in 2015 in troubled centers
Kyiv, January 30 (Interfax-Ukraine) – Rent rates in shopping and leisure centers in Kyiv will not change in the short-term outlook, taking into account the large number of projects declared for commissioning in 2013-2014, Head of Strategic Consulting Department of the UTG Viktor Oborsky said at a press conference at Interfax-Ukraine on Wednesday.
"Rent rates in 2013 did not change, and it's obvious that they will not change in 2014, as new supply of retail space will put pressure on the market. Maybe, from 2015 the rent rates will decline by 10-15% in the most troubled centers," he said.
According to UTG, rent rates in 2013 came to $30-100 per square meter a month (value added tax and operation cost not included) depending on the location and popularity of the shopping center.
The average rent rate for 100-200 square meters in the retail gallery totals $70 per square meter (value added tax and operation cost not included). The scheme of paying a percentage of goods turnover (3-5%) is widely spread for anchor leasers and 10-17% for retail gallery operators.
Oborsky said that the general market supply of high-quality retail space in Kyiv came to one million square meters, including 102,000 square meters of retail space commissioned in 2013.
"This year we expect that six new shopping centers with a gross lettable area (GLA) of around 428,870 square meters will be commissioned, including three mega-malls: Respublika mall, Blockbuster Mall and Lavina Mall," he said.
He also said that 20 shopping center projects with GLAs of nearly 920,000 square meters at the stages of designing, start of construction or suspension of construction have been declared on the retail property market. They could be opened in 2015-2016.
Oborsky said that the attendance indicator in 2013 came to 920 people per 1,000 square meters, vacancy of shopping centers in Kyiv in 2013 stood at 1.5-2%, which is evidence of the non-saturation of the market with high-quality retail space.
The highest atttendence of 30,000-40,000 people on working days and up to 60,000 on weekends is registered in the following malls: Ocean Plaza, Dream Town (the first phase), Sky Mall and Karavan.