Skip Ribbon Commands
Skip to main content

News Release

St. Petersburg

Rental Rates for food court and entertainment area at Broadcasting in St. Petersburg increased by 10-20%

Jones Lang LaSalle specialists have summed up the development of commercial real estate market of St. Petersburg in 2011

St. Petersburg, January 23, 2012 - Total quality retail space in the fourth quarter 2011 amounted about 1.6 million sq m. In the fourth quarter it was commissioned two shopping malls: TRC "Academic Park" (leasable area - 20,000 sq m) and the TRC "Skipper Mall" (7,500 sq m). Total for the year at the market was seven high quality shopping centers. The largest of them are TRC "Summer" (79,000 sq m) and "City Mall" 2nd stage (30 400 sq m).

The volume of projects, launched into the market during the last year, higher than the average amount of input in 2009-2010 (about 100,000 sq m) and was 200,000 sq m Currently defrosted and re-declared facilities are actively constructed. The total amount of future projects planned for release in 2012-2013, is about 460,000 sq m.

From January to October 2011 retail a turnover growth has demonstrated the positive values and was 2.6% compared with the corresponding period of 2010. For the first nine months of last year, real personal income growth was very moderate at 3.6%, whereas the pre-crisis figures rarely showed annual growth of less than 10%.

Low values of real income growth and retail sales restrain the interest of international brands to the market. Retailers who have not yet entered the Russian market, have taken a waiting position until the economic situation becomes more certain. At the same time, many operators who has already present on the market in Moscow, St. Petersburg considered for further development.

The most active developing at market in 2011 St. Petersburg was children's entertainment . The largest of the amusement parks were opened: «Happylon» (4,200 sq m) in the TRC "Galleria" and "Kidburg" (2,800 sq m) TRK "Grand Canyon". Just a few of the operators of this profile are planning to enter the market of St. Petersburg in 2012.

The maximum rental rates for retail gallery for high quality shopping centers in the fourth quarter of 2011 remained at $ 2,000/sq m/ year. At the same time in shopping malls there is an increase in rates for food court and restaurants space, entertainment zone by 10-20% depending on the segment. Due to the high level of competition among operators of rental growth in 2011 was faster than the market average. We expect that growth rates in 2012 will be 5-10% for the operators of the shopping gallery.

Andrey Rozov, Head of Jones Lang LaSalle in St. Petersburg, said: "On the one hand, in 2011 we have seen active work of investors and developers at new projects," unfreezing "of several previously suspended and reconception of ineffective projects, as well as the emergence of new professional investors and developers in the retail market. On the other hand, this activity was supported by a moderately positive growth rates of retail trade tornover, real income growth and the continuing development of a moderate appetite for a sufficiently large part of Russian and international brands. All this allows us to evaluate the development of retail in St. Petersburg in 2011 as an active, balanced and qualitative”.

"The lack of growth in turnover and uncertainty of the economic situation forces the retailers to reconsider their development plans - adds Veronica Lezhneva, Head of Research of Jones Lang LaSalle in St. Petersburg. - Therefore in 2012 there will be a limited number of new brands at the market. Thus, a competition between operators who are already present in the market will increase, that will affect in the maximum rental rates that will grow up. We expect rental rates increase by 5-10% during the year”.

Information about Jones Lang LaSalle
Jones Lang LaSalle (NYSE: JLL) - a company providing financial and professional services in real estate. Having an expert teams all over the world the company offers an integrated services to owners, tenants and investors, seeking increased value of their assets in real estate. The company's turnover in 2010 amounted to more than 2.9 billion U.S. dollars. Jones Lang LaSalle has  more than 180 offices worldwide operating in more than 750 cities in 60 countries. Jones Lang LaSalle is an industry leader in the management field of corporate real estate - a portfolio consist of  almost 167 million sqm around the world. LaSalle Investment Management, the investment management division, is one of the largest and most diverse in the world of assets under management worth more than $ 41 billion.
In Russia and CIS countries, Jones Lang LaSalle represented by offices in Moscow, St. Petersburg and Kiev. In 2004, 2006, 2007, 2008, 2009, 2010 and 2011, the company was honored with the award "Consultant of the Year" by Commercial Real Estate Awards, Moscow and prizes "Consultant of the Year" by Commercial Real Estate Awards, St. Petersburg in 2009. For more information about the company can be found on the site