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RING COMPOSITION

Experts call the creation of unified retail spaces within the Moscow TPU another key trend of recent months. "The opening and development of the MCC, as well as new metro stations, allowed street retail tenants to reorient themselves, including on offers from the city, and get a new opportunity to lease metro areas (instead of the old one taken away in the form of demolition of a self-construction)," explains Egor Ostapenko, Director of the Commercial Real estate Department of Praedium. – ​The change in the composition of the tenants of the streets was also influenced by changes in the banking sector: the revocation of licenses freed up many banking premises. In addition, the remaining players began to calculate the economy of their branches in more detail and are no longer ready to open in each location, or even cut development plans altogether, going online or to the shopping center, where rental rates have decreased.

The concept of a "center for tourists and strollers", rather aggressively promoted by the Moscow authorities in the last three years, reached its apogee on the eve of the World Cup and already now, according to the players, has changed buyers in the street retail segment. «If before  it was «a tourist buyer», now – «rather a tourist than a buyer», – shares Egor Ostapenko. – ​The city is making efforts to make the center a tourist destination, and in this concept clothing and shoe brands no longer see themselves on the central highways. The exception is single stores that open in the center more for marketing reasons and for the sake of brand advertising than from the point of view of sales. The economy of a tourist is very simple: food, souvenir shops, interesting "centers of attraction" (public venues)».

The opening of new parks and other urban spaces also has a significant impact on the alignment of street forces. "As a vivid example, I will give the Zaryadye Park, which literally breathed new life into the streets and squares located next to it," recalls Anastasia Malkova. The park has become a new center of attraction for citizens and has acted as a driver for the revival of retail activity in the neighboring streets. The reconstruction of Moscow in general has led to a change of focus in favor of pedestrians: new convenient routes, new fountains, small town squares and, accordingly, new tenants have appeared. Street retail can play an important role in the development of the urban lifestyle of Muscovites.

Alexey Vanchugov, Managing Partner of Vanchugov & Partners, agrees: it is the new urban environment that will influence the profile of future street tenants. "Instead of countless communication salons and expensive restaurants, pedestrian zones expanded as a result of renovation have turned into spaces of democratic catering and social infrastructure," Mr. Vanchugov notes. – ​In parallel with this process, a trade belt was being formed around Moscow, which is almost complete today. Large shopping malls, retail parks and power centers have taken their places and satisfy the demand for mass shopping. The center of the capital is being freed from diverse trade, a recreational cluster is being formed here, serving large pedestrian traffic.

To be continued.

Text: Ekaterina Reutskaya

Photo: shutterstock