Tverskaya sank

A report on the cost of renting premises on the main streets of large cities of the world has been published by the Cushman & Wakefield Consulting company published its annual report “Main Streets Across The World”, which, in particular, gives prices for the rental of premises on the main streets of the world. Moscow is no longer included in the top ten cities with the highest rental rate behind retail space. Over the year, Tverskaya street “lost” 4 points, moving from the seventh to the eleventh place, the study says.

Cushman & Wakefield experts explain the reduction of bets on Tverskaya Experts with an increase in competition among landlords due to the emergence of large shopping centers outside the center of the capital. However, the report has a reservation that the demand for retail space and the income of landlords is still high. According to Cushman & Wakefield, the rental rate in trading areas on Tverskaya decreased by 2.9% and amounts to $ 3400 sq. m per year. According to this indicator, the street takes 11th place.

The most expensive shopping premises on Fifth Avenue New York ($ 13993) and Causaneway Bay in Hong Kong ($ 1,1653). The authors of the study note that this year the rental price around the world continued to rise. So, on the fifth Avenue in New York, she grew by 38%, and in Hong Kong, almost doubled.

The leading analyst Cushman & Wakefield Stiles & Riabokobylko Denis Sokolov notes that the fall in the ranking does not mean reducing the lease in the long term and since the rating shows the ratio between bets, the reduction in the rating of one street means only that the rating has grown. “We are talking about exclusive street, so at different points the cost of rent can reach different values,” says Sokolov.

The Executive Director of Cushman & Wakefield Stiles & Riabokobylko Sergey Ryabokobylko explains that the study is designed for people who are going to rent a outlet. “In fact, the study reflects only the growth rate of rental value,” Ryabokobylko believes.

The rest of the market players agree with this. In their opinion, Tverskaya cannot cheaper, since it is the most prestigious trade place in Moscow. “The bets on Tverskaya are only growing, this year they have grown by 20%,” says June Lasalle Russia, Julia Drovyanknikova.

“I do not believe that Tverskaya is getting cheaper,” says Andrey Patrushev, PR -director of Knight Frank. The expert explains that the Street-rice (small stores), namely, this segment includes almost all retail outlets on Tverskaya, is one of the most closed market segments. That is, the rental rate is not fixed, and the owner of the retail space always seeks to set the price to the maximum.

“Have you never noticed that the signs on Tverskaya are often changing? The rental rates are very high, so not everyone can afford to rent an area for a long time, ”says Patrushev. He notices that it can afford to trade on Tverskaya mainly networks (Zara, Benetton, Mexx), who have the opportunity to earn in other places, since there are almost no profit at such high rates. “The point on Tverskaya is for the most part an image move,” says Patrushev.

10/27/2005 / Rodion Levinsky material published in the newspaper No. 205 dated October 28, 2005.