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Moscow

Moscow shopping centre stock will be replenished by 185,000 sq m of GLA

Jones Lang LaSalle presents the results of Q3 2012 on retail market


Moscow, 04 October 2012 - According to Jones Lang LaSalle research, no new high quality shopping centres were opened in Moscow in Q3 2012 for the second consecutive quarter. However, Moscow Region has seen the opening of several schemes, including an absolutely new format for the Russian market - outlet  shopping centre.

No new schemes were opened in July-October 2011 either. As a result, completions volume reached the lowest historical level of 126 250 sq m in 2011.

Andrey Privezentsev, Head of Retail Research, commented: “Zero volume of new completions forces us to review our forecast for 2012. According to our estimations 4 shopping centres with a combined GLA of 140,000 sq m are planned to be opened in Q4 2012. Consequently, total completions will likely reach 185,000 sq m (against our previous forecast of 255,000 sq m) as the GoodZone SC opening is now planned for 2013.”

Completions in Moscow shopping centres

Graph1.png

 

Source: Jones Lang LaSalle
 
Several schemes are planned to be opened in 2014, with a considerable increase in supply not expected until that time.
 
Existing supply gravitates to the south, 43% of high quality premises (or 1.4 m sq m) are located in Southern, South-Eastern and South-Western districts.  The share of North-Western district is expected to increase and the share of Central district is expected to decrease in 2014.
 
SC stock distribution across Moscow districts
Graph2.png
*From 2012 (inside pie chart) to 2014 (outside pie chart)
Source: Jones Lang LaSalle
 
Andrey Privezentsev noted: Active market development in Moscow has encouraged market evolution in Moscow Region in the recent years as well as fostering new formats including outlets. The first shopping centre that complies with all the standards of  the outlet format, Outlet Village Belaya Dacha was opened in Q3 in Moscow Region.
 
The outlets  have been developing in Europe and USA for more than 40 years and in Russia this format is considered to have considerable growth potential.  Outlets are beneficial for all market players. Consumers will have the possibility to buy quality merchandise with a significant discount, retailers can sell off the stock and increase revenue, developers are motivated by lower land prices and shorter payback period. Already well established in western markets, outlets have great potential and a chance to succeed in Russia,  taking into account current economic situation when cutting on costs becomes a key factor in making the purchase decision.
 
Existing and planned outlets
Project name​ Developer​ Location​ GLA (sq m)​ Date of opening​
Outlet Village Belaya Dacha​ Hines/Belaya Dacha​ Moscow Region​ 38,000​ Q3 2012​
Vnukovo Outlet Village Moscow​ Dion LLC​ Moscow Region​ 26,900​ Q4 2012​
Fashion House Outlet Centre Moscow​ Fashion House Development / GVA Sawyer​ Moscow Region​ 28,800​ Q1 2013​
Fashion House Outlet Centre Yekaterinburg​ Fashion House Development​ Yekaterinburg​ n/a​ 2014​
Fashion House Outlet Center St. Petersburg​ Fashion House Development / GVA Sawyer Leningrad Region​​ 29,600​ 2014​
Outlet Village Pulkovo Hines International​ Hines International​ Leningrad Region​ n/a​ n/a​
Source: Jones Lang LaSalle
 
About Jones Lang LaSalle
Jones Lang LaSalle (NYSE:JLL) is a financial and professional services firm specializing in real estate. The firm offers integrated services delivered by expert teams worldwide to clients seeking increased value by owning, occupying or investing in real estate. With 2011 global revenue of $3.6 billion, Jones Lang LaSalle serves clients in 70 countries from 1,000 locations worldwide, including 200 corporate offices. The firm is an industry leader in property and corporate facility management services, with a portfolio of approximately 195 million square meters worldwide. LaSalle Investment Management, the company’s investment management business, is one of the world’s largest and most diverse in real estate with $47 billion of assets under management.

In Russia and CIS Jones Lang LaSalle have offices in Moscow, St. Petersburg, Kiev and Almaty. Jones Lang LaSalle, Russia was voted Consultant of the Year in 2004, 2006, 2007, 2008, 2009, 2010, 2011 and 2012 at the Commercial Real Estate Awards, Moscow and Consultant of the Year at the Commercial Real Estate Awards 2009, St. Petersburg.
For further information, please visit our website www.joneslanglasalle.ru