Brief review of retail real estate market in Krasnodar

Size: px

Start display at page:

Download "Brief review of retail real estate market in Krasnodar"

Stuart Kristopher Snow
5 years ago
Views:

1 Brief review of retail real estate market in Krasnodar 2012 Prepared by GVA Sawyer

2 Retail real estate market Krasnodar had about sq. m. GLA of new premises commissioned in quality retail centres at the end of As of today Krasnodar is one of the cities having the largest number of quality retail premises. A tendency towards increasing the number of premises will remain due to construction of 6 retail facilities. Due to tough competition and market saturation developers will switch over to new formats which are specialized retail facilities. This tendency could be traced in the second half of the year 2012 when several specialized retail centers were open, in particular Malysh, Stolplit home, Mebel SBS, Posuda center. Another retail facility of DIY format (RC Hozyain ) is under construction. Table 1. Main indicators of retail and entertainment real estate in Krasnodar, research, Department of economic development, investments and external affairs in Krasnodar. Main indicators 2012 Other period Retail trade turnover, billion rub. 1 Index of retail trade turnover in prices comparable to those of the respective period of the previous year, % 715,4 (January- 653,5 billion (January- November 2012) November 2011) 104,2 104,4 Volume of premises in quality RCs according to the results of 1366,8 / 946, /721 (2011) the period, total area/gla thousand sq. m. Commissioned, total area / GLA thousand sq. m / / (2011) Commissioning of retail premises, forecast for 2013, total area/ GLA, thousand sq. m / Vacancy rate, % 13 10,5% (2011) 1 Retail trade turnover in Krasnodar Region. 2 Data provided with regard to retail complexes of Big Box format. Prepared by GVA Sawyer

3 Supply In 2012 Krasnodar had quality retail space commissioned ( sq. m.). Thus, according to the results of the previous year overall supply of retail (leasable) premises amounted to sq. m. in Krasnodar. Availability of quality retail premises was sq. m. GLA per residents. It is the highest indicator amidst Russian and some European cities. Chart 1. Dynamics of quality supply volume in , GLA, thousand sq. m. Main events in 2012 are as follow: Opening of new facilities (REC Karnaval, REC Oz Mall, REC Monarama ) including several specialized retail centers ( Stolplit, Mebel SBS, Malysh and etc.); Commencement of construction of a new major project the second phase of REC Galereya-Krasnodar ; Opening of new entertainment facilities in functioning RECs (planetarium in REC Galaktika, skating-rink, bowling center and cinema hall in Oz Mall ) and modernization of the old ones (reconstruction of cinema halls in SBS MegaMall and Galereya- Krasnodar ). As of today Krasnodar has six retail centers at different stages of construction. Five of them are being actively constructed (see Table 2). Table 2. Retail premises in RECs of Krasnodar planned to be commissioned in RC s name REC «Galereya-Krasnodar», phase 2 Total/ leasable area, sq. m / Commissi oning/ status 4Q 2013 RC «Karnaval», phase / RC «Strelka» in Vostochno- Kruglikovskaya street 9 783/ REC "Gorizont" / RC «Hozyain» (DIY) / Works on erecting RC Serdtse goroda were suspended near the Cooperative market. In 2013 according to GVA Sawyer forecasts thousand sq. m. of retail premises (GLA) are planned to be commissioned in quality retail centers. Opening of cinema and under roof parking in REC Karnaval is planned in Q According to the results of 2012 average share of vacant premises in quality RCs is 13%. Many quality retail centers of the city are fully occupied. Occupancy rate in the most successful projects is 95-98%. They are as follow: REC Galereya Krasnodar, Mega Adygeya Kuban, City-center, REC SBS MegaMall. In REC Galaktika occupancy rate is 94%, and in Megacenter Krasnaya ploshchad 91%. In such RECs as Oz Mall and Karnaval which have been opened recently; occupancy rate is at low levels 57% and about 30% respectively. With regard to these facilities, current average vacancy rate accounts for 13%. During the previous year when new shops were opened in those retail centers, their occupancy rate was growing. This tendency will be also observed in Prepared by GVA Sawyer

4 If we don t consider new commissioned facilities which haven t been fully occupied yet, vacancy Demand According to the results of 2012 no major purchase and sale transactions were recorded on the retail real estate market. Net absorption of retail premises amounted to about 60 thousand sq. m. GLA. More than 90 shops were opened in different RECs of the city in 2012 (see Table 3). In Q the second phase of a furniture center with an area of sq. m. was opened in REC Krasnaya Ploshchad. The furniture center has included new furniture stores such as Infiniti, Tsvet divanov, the furniture factory Moskva, Forma Ideale, Gradient, Dana, etc. The following shops have been opened in REC OZ Mall : Uyuterra, Marks&Spencer, Pull&Bear and some other shops as well as a 10-screen cinema seating people and a bowling-center with 36 bowling alleys. In Q REC Karnaval opened pub Beliy krolik, store chains Ketroy, HOUSEHOLD, Technosklad. Gastropub Bread&Drink was opened in SBS MegaMall. Among famous shops which are planned to be opened in 2013 there are new brands such as Lino casa, Tsukkini Home, Zara Home and those which have already existed on the market such as Zara, Massimo Dutti, Oysho, Happy Time, Reebok, Stradivarius, Angel rate in other RECs has been reduced from 10,5% to 10% in comparison with the pervious year. Donna, Sunlight Briliant, etc. New restaurants planned for opening in 2013 are Chili s Grill&Bar, Erivan, Ogon I hvorost, etc. Table 3. New shops opened in Krasnodar in 2012., Format Clothing Foodcourt Household appliances and electronics, mobile phone center Goods for children Household goods Cosmetics Jewellery Store s name Intimissimi, Triumph, Milavitsa, Terranova, Salomon, KETROY, H&M (2 stores), Gloria Jeans, etc. Mcdonalds, Tanoshy, Accademia, Beliy krolik, Shokoladnitsa, etc. Technostil, MTS, Technosklad Detsky mir, Lego (2 stores) HOUSEHOLD, Uyuterra, Infiniti, Tsvet divanov, Gradient, etc. Profi-Center NOMINATION, Russo, Venera, Zolotoy larets, Moskovsky yuvelirny zavod, etc. Buying activity will be reduced after New Year holidays however it will retain all good characteristics because there is a period of sales which is traditionally held in RECs of the city in January. General demand will be for convenience goods (clothing, cosmetics, small appliances, etc.). Financial conditions In 2012 rental rates in most facilities were not radically changed. Slight growth fluctuations were observed in those RECs where an additional part of rental rate depended on euro or dollar rate. Due to termination of lease agreements rental rates in some retail facilities were revised in Q4. Their growth was about 3%. Prepared by GVA Sawyer

5 At the end of year rental rates were distributed the following way: in REC SBS MegaMall from to rub./sq. m., in REC Galereya-Krasnodar from to rub./sq. m., in REC Krasnaya Ploshchad from 500 to rub./sq. m. On average rental rates in RECs are from to rub./sq. m. in the city. New emerging retail facilities will continue to stir up competition on the market. Such factors as conception and owners policies will influence occupancy rate in RECs. Tendencies of the previous year demonstrate that many quality RECs in order to attract people open new entertainment units (for example, planetarium, skating-rink) and modernize the old ones (cinema halls); we can also observe tenants rotation. Thus, those RECs which have a quality conception, best location and better tenants and supply services will be the winners. Other market players will be gradually ousted from the market. The exceptions will be those RCs which will find their firm customer and propose a flexible payment system for tenants. GVA Sawyer forecasts that in case all announced retail and entertainment facilities are constructed, weighted average rental rate will be reduced on the market. In Q we expect further reconsideration of rental rates of tenants whose lease agreements are being terminated. Rental rates remain at the same level in most RCs. We expect possible increase of rental rates in some retail facilities in Table 4.1. Range of rental rates in RECs and Street-retail in Krasnodar Format Average area, sq. m. Average range of rental rates, rub./sq.m./ year/triple net Anchor tenants Food hypermarket DIY Sporting goods store Household appliances and electronics Garden goods Household goods Clothing department store Entertainment center Cinema Food supermarket Other tenants Food court operator Food court operator (restaurant, coffee house, bar) Retail gallery operator Retail gallery operator Retail gallery operator Retail gallery operator Retail gallery operator Street-retail Prepared by GVA Sawyer

6 Аналитический документ по исследованию рынка недвижимости по исследованию рынка недвижимости Аналитический 56 сентября 2012 GVA Worldwide GVA Sawyer contacts Australia Austria China Cyprus Denmark Estonia Finland Germany Great Britain Greece Hungary Hong Kong (PRC) Ireland Italy Lithuania Netherlands New Zealand Poland Russia Sweden Switzerland Head office (Moscow) Bernikovskaya Embankment House Nikoloyamskaya Ul. 13, Str , Moscow, Russia Tel: +7 (495) Fax: +7 (495) Office in St. Petersburg BC Mir, Elfimova Ul. 4a, office St. Petersburg, Russia Tel.: +7 (812) Office in Krasnoyarsk Diktatura Proletariata Ul. 32Office Krassnoyarsk, Russia Tel.: + 7 (391) info@gvasawyer.com Office in Krasnodar: Zipovskaya Ul., 5, building 6, office Krasnodar, Russia Тel.: +7 (495) info@gvasawyer.com Подготовлено GVA Sawyer

Retail Real Estate Market Review

Retail Real Estate Market Review Moscow, 3Q 2010. 1 Moscow Retail Real Estate Market Table 1. Major indicators of Moscow retail real estate market, Q3 2010 Major indicators 2010 Volume of premises in quality