back to the market
With the onset of the crisis for the owners of professional commercial and shopping centers (shopping mall, and TRTS) in the regions, in particular, cities with populations of less than 500 thousand people., came hard times - due to a sharp reduction in sales, many retailers have decided to close the their shops, or to transfer them to large cities. This, of course, negatively impacted on the degree of filling space in the shopping center and TRTS. Especially a lot of free space (20-30%) in the shopping malls that opened last year and did not have to lease 100% of the area before the crisis, - said Natalia Kravets, the head of the department of international commercial real estate consulting company Colliers International (Ukraine ).
In connection with such a high level of vacancies, some developers have been forced to reconsider the use of free space. Thus, if earlier, as the main tenants they had seen the major operators (furniture stores, household appliance stores, playgrounds, etc.), now mostly rely on local small tenants - quite simply, the representatives of small businesses who trade clothes , shoes, accessories, etc. without the use of deductibles (ie, are not representatives of certain brands, both international and domestic), leased at an average of 5-15 square meters and are ready to sign a short leases for a period of 6-12 months. The owner advisable to do so if the object neuspeshen and the demand for space by the network operators is minimal or absent. That is, despite the concessions to tenants by owners of shopping centers, retailers are still together, and thus increases the vacant and, as a result, attendance falls shopping center, - said Marina Krestinina, Senior Consultant of Department of strategic consulting, international consulting firm CB Richard Ellis .
Indirect causes
But, as noted by some experts, the return of markets under the roof is not always caused by just a desire to developers as soon as possible to fill the vacant space. According to them, because of reduced income, many buyers of professional prior otovarivavshiesya TC, ready to return to the clothing and food markets. Accordingly, owners of shopping centers to go to meet consumers. Crisis has reduced the requirements of potential consumers to the quality of retail outlets. Many residents of regional towns have switched to the markets. At the same time, many operators began to reduce their requests for lots of shopping, - says Valery observations Kirilko, managing partner of Concord Development. - Given these trends, and based on the results of full-scale studies conducted in four cities of Ukraine, for example, we proposed a re-branding of four supermarket chains to owners of shopping centers Plasma, located in the regions. Previously, half the space in the shopping centers was a major supermarket electronics.
But in the process of reformatting it began to curtail their activities in almost all shopping malls, while the remaining - to reduce the size of footprint. We also plan to place a liberated area outlet area of 4-20 sq. m. Items will be combined into clusters (in addition to this, many experts advise new tenants of separated from the network operators, for example, raise additional partitions, settle for a variety of floors, etc.). According to Mr. Kirilko, the situation in the first shopping center in Zhytomyr, which has already been rebuilt and delivered to him by lease, affirms allegiance to the chosen concept. This can be seen in the great interest shown by local merchants to lease space in donations from the trade center, - he said.
By the way, the possibility of putting an effective area of shopping centers for lease to small businesses has been demonstrated even in the pre-crisis time. In particular, as noted by Andrey Golubkov, project manager international company Knight Frank LLC Ukraine, examples of shopping centers, providing space for lease to small business, serving the capital's Interval-Plaza, Pyramid (now the owners of the shopping center refused to small traders ), Metrograd, Samson, shopping malls Square, etc.
Experts note that the attractive nuance when dealing with small business owners for the shopping center is often an opportunity to receive income from rental of 30-50% higher than when working with network branded operators. That usually apply to shopping centers principle: the smaller the area occupied by the tenant, the higher rental rate. There are two explanations. First, even with a fixed rental rate, it is calculated in relation to turnover (if it exceeds a certain percentage, then the tenant becomes unprofitable business), and the tenants occupying the small space, usually a high (ie 1 square. m), turnover, respectively, the higher the rate. Secondly, large shops usually are anchors, ie generate the main stream in the supermarket. Because their presence is vital to the trade center, the owners provide such tenants a more advantageous terms, - explains Ms. Krestinina. In particular, according to thecompany CB Richard Ellis, pre-crisis rate for anchor tenants (Section 5 tys.kv.m) varied between $ 12-15 per 1 square meter, and the average rate for the commercial sections of boutique galleries - $ 100-120 for 1 square meter per month. During the same crisis rates declined on average by 40-50%.
Consequences
However, no matter what, even if temporary, gains or carried to attract tenants as small traders, experts advise not to forget that converted into a covered market shopping center in the first place to lose its attractiveness to foreign investors. The main indicators, which in turn draws the attention of Western investors - is cash flows generated by a commercial object, the length of leases and security of tenants - explains Andrey Golubkov. - Unfortunately, foreign investors do not consider small business as a highly reliable customers. That is, an object that is filled with well-known operators, and generates less cash flow, much more foreign investors than shopping site that is filled with representatives of small businesses. This facility will be evaluated by an investor with a substantial discount, the calculation of which will take into account not only the existing leases, but the potential income, calculated on the basis of assumptions about the rupture of existing leases and lease the shopping center professional trade operators.
Marina Krestinina less categorical in this matter. She believes that everything will depend primarily on the investor, the demands on the risks and rates of return. For example, institutional investors are interested in acquiring quality projects with low risk. But there is a group of investors who are interested in buying items from a good location, but failed concept and arendatorskim pool.
attractiveness of such investments is that by acquiring such a facility at a relatively low price (high risks and, consequently, a high discount rate), it is very easy to improve the investment quality of the product at the expense of alterations and changes in the composition of tenants. As a result, the cost of the facility will increase and decrease the risks inherent in market under the roof, - said the expert. As a vivid example of such investments can lead TC Piramida, which was bought by US-British company 1849 PLC for 2006
This shopping center was a semi-object with an unbalanced composition of tenants, most of which were the typical market traders. But the main advantage of the shopping center served as its location (near the Metro station, subway station Poznyaki), and the architectural concept has allowed the building easily enough to hold rekontseptsiyu the second floor and fill it out online retailers.
  ÂВ
Thus, as noted by the experts, the owners of shopping center, starting with small businesses, must understand that if they focus on the sale of its facility to foreign investors, they will have to hold almost a complete rebranding of the complex: break existing contracts with the small traders, to create a new the concept of the complex, to find new tenants (such as TC Pyramid), etc. Unfortunately, less painful way for the shopping center does not exist. Owners will have to go to the temporary loss of rental income and expenses for reberendinga to get a professional shopping complex, which could become a potential target of acquisition by foreign investors , - considers Golubkov.
In turn, Natalia Kravets advises developers to plan the transition from the market back to the shopping center already at the stage of transforming the shopping center in the market. That is not to make changes in capital equipment, to include in the lease points to the possibility of early termination of the developer on the agreement of the parties, etc. In this case, the cost of rekontseptsiyu and re-branding will be able to minimize, if not, then at least substantially reduced.
Elena Romaniuk
The technical analysis of currency pairs
Oil continues to fall: to mark Brent futures traded slightly above $ 66.5
Yesterday, a pair of Euro /Dollar down on U.S. session to 1.3986
Problem banks: How to exchange a security deposit on the property
Britain took over the head
U УкрГаз-Energo ended gas reserves
Most of «blue chips» fallen in «red» zone, but the weak buying not give rise to speak on the descending trend
The threat of continuing correction in the Russian stock market becomes a reality
September futures on the RTS index has managed to reach the resistance in the region of 94 000 items
Changing anchors
back to the market
With the onset of the crisis for the owners of professional commercial and shopping centers (shopping mall, and TRTS) in the regions, in particular, cities with populations of less than 500 thousand people., came hard times - due to a sharp reduction in sales, many retailers have decided to close the their shops, or to transfer them to large cities. This, of course, negatively impacted on the degree of filling space in the shopping center and TRTS. Especially a lot of free space (20-30%) in the shopping malls that opened last year and did not have to lease 100% of the area before the crisis, - said Natalia Kravets, the head of the department of international commercial real estate consulting company Colliers International (Ukraine ).
In connection with such a high level of vacancies, some developers have been forced to reconsider the use of free space. Thus, if earlier, as the main tenants they had seen the major operators (furniture stores, household appliance stores, playgrounds, etc.), now mostly rely on local small tenants - quite simply, the representatives of small businesses who trade clothes , shoes, accessories, etc. without the use of deductibles (ie, are not representatives of certain brands, both international and domestic), leased at an average of 5-15 square meters and are ready to sign a short leases for a period of 6-12 months. The owner advisable to do so if the object neuspeshen and the demand for space by the network operators is minimal or absent. That is, despite the concessions to tenants by owners of shopping centers, retailers are still together, and thus increases the vacant and, as a result, attendance falls shopping center, - said Marina Krestinina, Senior Consultant of Department of strategic consulting, international consulting firm CB Richard Ellis .
Indirect causes
But, as noted by some experts, the return of markets under the roof is not always caused by just a desire to developers as soon as possible to fill the vacant space. According to them, because of reduced income, many buyers of professional prior otovarivavshiesya TC, ready to return to the clothing and food markets. Accordingly, owners of shopping centers to go to meet consumers. Crisis has reduced the requirements of potential consumers to the quality of retail outlets. Many residents of regional towns have switched to the markets. At the same time, many operators began to reduce their requests for lots of shopping, - says Valery observations Kirilko, managing partner of Concord Development. - Given these trends, and based on the results of full-scale studies conducted in four cities of Ukraine, for example, we proposed a re-branding of four supermarket chains to owners of shopping centers Plasma, located in the regions. Previously, half the space in the shopping centers was a major supermarket electronics.
But in the process of reformatting it began to curtail their activities in almost all shopping malls, while the remaining - to reduce the size of footprint. We also plan to place a liberated area outlet area of 4-20 sq. m. Items will be combined into clusters (in addition to this, many experts advise new tenants of separated from the network operators, for example, raise additional partitions, settle for a variety of floors, etc.). According to Mr. Kirilko, the situation in the first shopping center in Zhytomyr, which has already been rebuilt and delivered to him by lease, affirms allegiance to the chosen concept. This can be seen in the great interest shown by local merchants to lease space in donations from the trade center, - he said.
By the way, the possibility of putting an effective area of shopping centers for lease to small businesses has been demonstrated even in the pre-crisis time. In particular, as noted by Andrey Golubkov, project manager international company Knight Frank LLC Ukraine, examples of shopping centers, providing space for lease to small business, serving the capital's Interval-Plaza, Pyramid (now the owners of the shopping center refused to small traders ), Metrograd, Samson, shopping malls Square, etc.
Experts note that the attractive nuance when dealing with small business owners for the shopping center is often an opportunity to receive income from rental of 30-50% higher than when working with network branded operators. That usually apply to shopping centers principle: the smaller the area occupied by the tenant, the higher rental rate. There are two explanations. First, even with a fixed rental rate, it is calculated in relation to turnover (if it exceeds a certain percentage, then the tenant becomes unprofitable business), and the tenants occupying the small space, usually a high (ie 1 square. m), turnover, respectively, the higher the rate. Secondly, large shops usually are anchors, ie generate the main stream in the supermarket. Because their presence is vital to the trade center, the owners provide such tenants a more advantageous terms, - explains Ms. Krestinina. In particular, according to thecompany CB Richard Ellis, pre-crisis rate for anchor tenants (Section 5 tys.kv.m) varied between $ 12-15 per 1 square meter, and the average rate for the commercial sections of boutique galleries - $ 100-120 for 1 square meter per month. During the same crisis rates declined on average by 40-50%.
Consequences
However, no matter what, even if temporary, gains or carried to attract tenants as small traders, experts advise not to forget that converted into a covered market shopping center in the first place to lose its attractiveness to foreign investors. The main indicators, which in turn draws the attention of Western investors - is cash flows generated by a commercial object, the length of leases and security of tenants - explains Andrey Golubkov. - Unfortunately, foreign investors do not consider small business as a highly reliable customers. That is, an object that is filled with well-known operators, and generates less cash flow, much more foreign investors than shopping site that is filled with representatives of small businesses. This facility will be evaluated by an investor with a substantial discount, the calculation of which will take into account not only the existing leases, but the potential income, calculated on the basis of assumptions about the rupture of existing leases and lease the shopping center professional trade operators.
Marina Krestinina less categorical in this matter. She believes that everything will depend primarily on the investor, the demands on the risks and rates of return. For example, institutional investors are interested in acquiring quality projects with low risk. But there is a group of investors who are interested in buying items from a good location, but failed concept and arendatorskim pool.
attractiveness of such investments is that by acquiring such a facility at a relatively low price (high risks and, consequently, a high discount rate), it is very easy to improve the investment quality of the product at the expense of alterations and changes in the composition of tenants. As a result, the cost of the facility will increase and decrease the risks inherent in market under the roof, - said the expert. As a vivid example of such investments can lead TC Piramida, which was bought by US-British company 1849 PLC for 2006
This shopping center was a semi-object with an unbalanced composition of tenants, most of which were the typical market traders. But the main advantage of the shopping center served as its location (near the Metro station, subway station Poznyaki), and the architectural concept has allowed the building easily enough to hold rekontseptsiyu the second floor and fill it out online retailers.
  ÂВ
Thus, as noted by the experts, the owners of shopping center, starting with small businesses, must understand that if they focus on the sale of its facility to foreign investors, they will have to hold almost a complete rebranding of the complex: break existing contracts with the small traders, to create a new the concept of the complex, to find new tenants (such as TC Pyramid), etc. Unfortunately, less painful way for the shopping center does not exist. Owners will have to go to the temporary loss of rental income and expenses for reberendinga to get a professional shopping complex, which could become a potential target of acquisition by foreign investors , - considers Golubkov.
In turn, Natalia Kravets advises developers to plan the transition from the market back to the shopping center already at the stage of transforming the shopping center in the market. That is not to make changes in capital equipment, to include in the lease points to the possibility of early termination of the developer on the agreement of the parties, etc. In this case, the cost of rekontseptsiyu and re-branding will be able to minimize, if not, then at least substantially reduced.
Elena Romaniuk
The technical analysis of currency pairs
Oil continues to fall: to mark Brent futures traded slightly above $ 66.5
Yesterday, a pair of Euro /Dollar down on U.S. session to 1.3986
Problem banks: How to exchange a security deposit on the property
Britain took over the head
U УкрГаз-Energo ended gas reserves
Most of «blue chips» fallen in «red» zone, but the weak buying not give rise to speak on the descending trend
The threat of continuing correction in the Russian stock market becomes a reality
September futures on the RTS index has managed to reach the resistance in the region of 94 000 items