Street retail is a new department within Knight Frank’s overall Retail strategy. Ekaterina Podlesnykh has been appointed as a head of the new division.
Generally street-retail can be defined as retail premises located on the ground floors of the residential buildings as well as business centers and hotels featuring a separate entrance. The department will deal with property owners (including marketing concept, commercial support and leasing out/sale) and tenants alike (providing with analytical support and facilitating the property search).
Ekaterina Podleshykh supposes that it is the dearth of shopping centres which is the key to the street-retail market most recent development.
‘The crisis of 2008 led to the decrease of the construction volume which affected the introduction of the new shopping centers globally. As a result a deficit of retail space can be observed in many countries in 2010-2011 which caused the tenants to look more closely at street retail. Russia is not an exception here.’
Apart from such prestigious addresses as Tverskaya and Stoleshnikov, where the tenant demand has been always high, street retail located along the major roads and next to the underground stations has been always popular. ‘One of the new tendencies is the reorientation of the demand towards residential ‘dormitory’ areas of the city. Here the developers would design the ground floor premises to locate shops and other amenities’- highlighted Ekaterina Podlesnykh.
Knight Frank experts claim that there is already a fairly efficient market framework in place for street retail market participants. However, this is quite a dynamic market that is changing rapidly in response to demand.