In the center of Kyiv, rental rates for street retail have decreased by 30-50% in dollar terms, the asking prices of such facade premises have fallen by 25-40% compared to the end of 2021, and the market has practically stopped due to high risks and a shortage of real buyers with cash, UTG company Director Evgenia Loktionova told Interfax-Ukraine.<\/p>\n
According to UTG, prime rates in the main shopping corridors of the capital before the start of the full-scale war reached about $70\/sq.\u00a0m\/month.<\/p>\n
\u201cCurrently, real contract rates for liquid facade street retail in the center fluctuate within $15\u201330 per 1 sq. m (depending on the highway, traffic and availability of a generator\/shelter). Illiquid facilities are forced to give even greater discounts,\u201d Loktionova reported.<\/p>\n
The reasons for the drop are, of course, related to the war: reduced purchasing power, curfew, restrictions on night work (impact on the HoReCa segment) and power blackouts.<\/p>\n
As for sales, in foreign currency, discounts for street retail facilities in central districts (Shevchenkivskyi, Pecherskyi) average 30% of the 2021 price.<\/p>\n
De facto, according to Loktionova, there are few full-fledged market investment deals. \u201cOwners keep nominally high prices in advertisements, but the real sale will only take place if there is a significant bargain (discount) in favor of the buyer, who takes on the risks of maintaining and restoring the business asset,\u201d she says.<\/p>\n
At the same time, the situation in Kyiv\u2019s street retail is very different. Locations like Reitarska and Arsenalna are successfully developing thanks to the concept of \u201ca place for living and communicating.\u201d In contrast, classic covered markets like Besarabka are losing ground due to outdated formats and high prices.<\/p>\n
\u201cThe prospects for street retail lie in areas with a unique atmosphere. For example, Reitarska has become a magnet for creative people. Small coffee shops, showrooms of Ukrainian brands and gastronomic projects have combined here. The success is explained by the pedestrian atmosphere, the party atmosphere and the concentration of \u201ctheir\u201d people. Arsenalna (A-Station): an example of professional urban redevelopment. The space near the metro has been transformed into a clean, safe and stylish pedestrian zone with a diverse food court. Success is guaranteed by high traffic, a single concept and management control,\u201d says Loktionova.<\/p>\n
She explained the failure of the Bessarabsky reconception by the loss of balance between traditional function and modern demand. \u201cPrices have become inflated, and the assortment is focused mainly on casual tourists, not permanent residents. Among the obvious failures is the lack of flexibility in leisure activities and high-quality modern public space around,\u201d says Loktionova.<\/p>\n
In general, she sees the prospect of street retail in the transition from shopping streets to gastronomic clusters, because people go not only to buy clothes, but also for emotions, with coffee and food.<\/p>\n
\u201cSuccessful will not be the main retail corridors, but cozy neighborhoods near residential areas. The advantage is in flexible formats, the same small business quickly adapts to challenges, changing the menu or concept in a few weeks. A sense of safety and comfort is important, so those locations that offer clean space, barrier-free and places to sit in the fresh air will win,\u201d says Loktionova.<\/p>\n
<\/p>","protected":false},"excerpt":{"rendered":"
In the center of Kyiv, rental rates for street retail have decreased by 30-50% in dollar terms, the asking prices of such facade premises have fallen by 25-40% compared to…<\/p>\n","protected":false},"author":2,"featured_media":6283,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"googlesitekit_rrm_CAownIvDDA:productID":""},"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/utgcompany.com\/en\/wp-json\/wp\/v2\/posts\/6281"}],"collection":[{"href":"https:\/\/utgcompany.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/utgcompany.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/utgcompany.com\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/utgcompany.com\/en\/wp-json\/wp\/v2\/comments?post=6281"}],"version-history":[{"count":3,"href":"https:\/\/utgcompany.com\/en\/wp-json\/wp\/v2\/posts\/6281\/revisions"}],"predecessor-version":[{"id":6288,"href":"https:\/\/utgcompany.com\/en\/wp-json\/wp\/v2\/posts\/6281\/revisions\/6288"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/utgcompany.com\/en\/wp-json\/wp\/v2\/media\/6283"}],"wp:attachment":[{"href":"https:\/\/utgcompany.com\/en\/wp-json\/wp\/v2\/media?parent=6281"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/utgcompany.com\/en\/wp-json\/wp\/v2\/categories?post=6281"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/utgcompany.com\/en\/wp-json\/wp\/v2\/tags?post=6281"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}