Street Retail Market Moscow h1 2021

In the first half of 2021, we continue to observe the consequences of the pandemic, which are expressed in the vacancy rate of retail space in trade corridors. Separately, we would like to highlight the two-fold introduction of restrictive measures for catering operators: first for several weeks in winter, then for several weeks in summer.

During the period of restrictions, there was an acute problem of closing many public catering enterprises due to a shortfall in profit, the majority of the revenue reached 10-20% compared to the same periods of previous years.

At the same time, in the first six months of 2021, 33 new catering operators were opened with a total leased area of 6.9 thousand square meters. m. If we pay attention to the vacancy, for example, on Arbat Street, which was a clear outsider at the end of 2020, we observe an increase in demand among tenants and a decrease in the share of vacant premises. The rise in rental rates on key retail corridors and the recovery in consumer flow tell us about the gradual end of the «pandemic crisis.

If by the end of the year additional restrictions are not introduced for retailers (such as QR codes for public catering), we can more confidently speak of a complete recovery of the market by the end of the 1H 2022.