UTG experts calculated the vacancy rate of the capital’s shopping malls in 2024. According to analysts’ calculations, in 2024 the share of free space in Kyiv shopping malls was 13.1%, as opposed to 16.3% in the previous year. At the same time, the highest vacancy rate is characteristic of regional (15.1%) and district (15.2%) formats and is concentrated mainly in 4 objects: Blockbuster mall, “Marmelad”, Promenada Center and Art Mall. Also, the opening of large-format SCs against the background of a limited range of retailers may increase the average market vacancy rate and make it difficult to attract tenants.

According to the conclusions of UTG experts, the active development of retail in previous years and the saturation of the market with retail space led to a gradual decentralization of attendance, an increase in vacancy rates, a decrease in rental rates, an increase in OPEX (due to a smaller number of tenants, the need to maintain generators, etc.). The change in the share of free space is also affected by the relocation of operators from the east and south to the west due to the destruction of SECs as a result of shelling and the physical threat to their further operation. The exit of retailers from Russia from the market, the closure of international ones (“IKEA”) and the lack of alternative department stores and a pause in the release of new brands also had a negative impact. In addition, the vacancy rate is affected by the difficulties in resuming the full-fledged work of entertainment operators (fitness centers, cinemas, shopping centers, bowling alleys, catering establishments) before the end of the war.

Therefore, according to experts, there is now a change in the interests of developers due to the war. Investors are considering other regions, new segments and alternative industries for their investments. Also, owners of commercial real estate have a need to reformat the gallery, conduct a reconception. These issues will become especially acute after the war in a number of commercial facilities, including extreme solutions.