Tenants looking for premises for a cafe. Street retail: tenants return Rental rates in street retail

The main market players are catering enterprises - restaurants, coffee shops and bakeries, fast food, street food and burgers. Over the past year, new points were actively opened by the restaurant groups ItalyGroup, Delmar, ReCaGroup, GinzaProject, KFC, Burger King, Bushe and Sever Metropol. In the fourth quarter, new outlets Cofix and Coffee House No. 1 on Sadovaya Street, Kakha Bar and Black books bar on Rubinstein Street, # Farsh and Shikari on Nevsky Prospect opened.

In second place in terms of lease deals are grocery chains: X5 Retail Group, Dixy, Magnit, Netto, AB Daily, Farmerskiye Produkty, as well as various health food stores.

The number of Moscow, regional and foreign operators has grown in the street retail market - mainly among restaurateurs and in the fashion industry (for example, Unique Fabric opened on Kamennoostrovsky prospect, and La Perla on Nevsky prospect). Some retailers continued to update their established establishments and stores.

Respectable fashion operators were primarily interested in objects on Staro-Nevsky Prospekt, which has already secured its position as a boutique zone. While only the Fabiana Fillipi flagship store opened on Bolshaya Konyushennaya Street, several jewelry salons, the LENA flagship store, Wolford, Lise Charmel, Escada, Dior and Bulgary boutiques came to Staro-Nevsky.

Among closed objects, the service sector is in the lead: if in January-March this segment accounted for 3% of closings, according to JLL consultants, then in the fourth quarter - already 18%. Among them, financial organizations predominate. Over the past three years, the number of bank branches on the main shopping streets has decreased annually by 5-7%.

In 2017, the exposure period of the most liquid objects in the field of street retail did not exceed two months and, often, the construction was handed over even before the end of the contract with the previous tenant. Trade corridors, in which the most significant increase or decrease in the share of vacant premises took place, are also leading in terms of rotation - these are Staro-Nevsky and Vladimirsky avenues, as well as lines 6-7 of Vasilyevsky Island (JLL data). The largest volume of supply for renting premises remains in new buildings on the borders of St. Petersburg and Leningrad region.

Most of the concluded lease agreements are long-term, for a period of three to ten years, which is due to the licensed activities of many entrepreneurs. Landlords again returned to indexing the annual rental rate (in the previous two years, this condition was applied infrequently).

Average rates on Nevsky Prospekt remain in the range of 6000 - 15,000 rubles / sq.m per month. The share of vacancies on the main thoroughfare of the city did not exceed 2.5-3% on average.

The payback period in transactions for the highest quality premises has grown to 11-12.5 years. Most of these objects were able to find a buyer in no more than four months from the beginning of the exposition. Demand significantly exceeded supply, notes A2 Retail. Buyers' budgets could vary from 20 million to 200 million rubles, and some investors acquired several assets at a time. Directly on Nevsky Prospekt, about a dozen liquid premises were put up for sale during the year. The prices indicated by the sellers were in the range of 630,000 - 2 million rubles / sq. M. Despite this, half of the properties sold have changed their owners, but the real estate payback has already reached 17 years.

Rental rates and selling prices in the street retail market of St. Petersburg for 2017

According to A2 Retail

Rotation of tenants on the main shopping streets of St. Petersburg in 2017

According to JLL

The share of vacant premises on the main shopping streets of St. Petersburg

According to JLL

EXPERT OPINION

Olga Atkachis, CEO of A2 Retail:

The street retail market in the first half of 2017 was characterized by slowness, but already in the second half of the year there were more deals. Competition among tenants for interesting premises has also intensified. Rotation in retail corridors such as Nevsky and Moskovsky Prospekt is negligible as they are occupied by tenants with long-term contracts. Of course, in the "sleeping" areas the offer is wider than in the historical center, but tenants are primarily interested in corner premises - with showcases and free planning.

Based on the results of the past two years, it can be concluded that the rental price has grown unevenly. For some of the most demanded areas, the average growth in rates reached 15-20%, while for others it did not exceed 5-10%. Investment demand for the purchase of premises remains. Some investors are still ready to buy a development only with a minimum payback period - no more than 6-7 years. However, such offers are rare and, as a rule, are caused by financial difficulties for sellers or problems with documents for objects. In general, most transactions are now completed within a ten-year payback period.

Apparently, the new half-year will be no less active than the last months of 2017. Competition for quality premises has intensified, with many clients expecting to sign lease agreements no later than March in order to have time to open at a new address before the start of the FIFA World Cup. In this regard, the terms of registration of transactions now do not exceed three months.

Vladislav Fadeev, Head of Research Department at JLL in St. Petersburg:

Street retail remains one of the most active segments of the city's commercial real estate. Moreover, the number of open objects at the end of the year turned out to be even 3% more than closed ones. There is no surplus of premises, the current share of vacant buildings on the main shopping streets is 6.7% on average. The same indicator was typical for the end of 2016, which shows the balance of the market. So, by the end of 2017, the share of vacant premises on Staro-Nevsky Prospect dropped to 3.9% (this is the minimum value for this trade corridor over the past three years). Vladimirsky Prospect also became the leader in terms of occupancy rates, where 5.9% of the premises were empty a year ago, and only 1.4% last December. There, for example, the Caviar Bar, Xiaomi and Marchelas have opened. At the same time, the most significant increase in vacancy (by 5.5 p.p.) was observed on the 6-7th lines of VO: primarily due to the closure of microfinance organizations and catering outlets in the immediate vicinity of the station. metro station "Vasileostrovskaya". As a result, the share of vacant premises here reached its maximum level among the key trade corridors - 11.9%.

The situation on the main part of Nevsky Prospekt remains unchanged in terms of such key indicators as the level of rental rates (7,500 - 13,000 rubles / sqm per month), rotation of tenants (7.6% per quarter) and the share of vacant premises (4.0% ). The share of catering dominates in the structure of tenants - 37%.

A slight increase in rental rates is typical for Staro-Nevsky Prospect, Sadovaya Street and Rubinstein Street; a slight decrease in price tags - on Bolshoy Prospekt PS, 6-7 lines of V.O. and Bolshaya Konyushennaya street, where all the most attractive and expensive premises are already simply occupied.

Of course, the investment demand for construction remains, however, the gap between the expectations of buyers and sellers remains quite large. This constrains the number of investment transactions in the market. The average sale price starts from 100,000 rubles / sq. M. The maximum price tag is 1.5 million rubles per square meter in the center of St. Petersburg.

Irina Tsarkova, Deputy Director of the Department of Retail Real Estate Colliers International in St. Petersburg:

In 2017, there was a noticeable increase in the activity of fashion operators. Over the past year, 16 new international and federal fashion brands entered the St. Petersburg market in the street retail format (while a year earlier there were only five). The overwhelming majority of retailers new to St. Petersburg opened high-priced stores. For example, the premieres of the boutiques Salvatore Ferragamo, Herno, Fabiana Filippi, Peserico, Lorena Antoniazzi, etc. "And Yana. The increased activity of premium brands is associated with a number of factors. During the crisis, prices for clothing, footwear and accessories in this segment have practically equaled the price tags abroad, which contributes to more frequent purchases in Russia. In addition, the development of retailers is driven by the growing demand from Chinese tourists who are focused on brands in the high price segment.

Marina Puzanova, Head of Commercial Real Estate Department, Knight Frank St Petersburg:

The market as a whole is very lively. The high volume of openings, the influx of new brands that were not previously represented in the city, contributed to the growth of rental rates along all shopping corridors, especially in locations with busy traffic. For example, the cost of rent on Moskovsky Prospekt has grown by 19%, on Ligovsky - by 17%. And on the street. Rubinstein due to high demand - by 25%. Traditionally, grocery retailers are active, but it is increasingly difficult for them to find suitable premises. New residential complexes, of course, are of interest to food producers, but, unfortunately, despite the sufficient volume of commercial premises, they do not always meet the requirements of the operators in terms of configuration: often there is no possibility of combining, unloading zones, etc. Catering was also active, the networks pleased with new formats. For example, the Boucher confectionery chain began to develop small bakeries called Warm Bread and Under the Blanket in a neighborhood format. Rosinter Restaurants Holding (Planet Sushi, IL Patio) has launched the first Pan-Asian restaurant Shikari on the St. Petersburg market. In the second half of the year, Arkady Novikov opened two establishments at once - the democratic “Minced meat” and the large-format “Cheese Factory”.

Elena Vishnyakova, Head of Retail Real Estate Rusland SP:

The market has practically recovered from the turmoil. The time of massive discounts on the rental of quality premises in street retail is already in the past. Tenants cannot dictate their terms to the owners as before. At the end of the year, we note an increase in the cost of rent in successful locations within 20%. Catering operators and grocery chains became the leaders in terms of transaction volumes. New operators are actively entering St. Petersburg: Novikov Group restaurant holding, Krasnoe & Beloe alcohol stores, BB & Burgers burger shops, SimpleWine wine collection, Stylish Kitchen furniture factory, Galamart constant sales stores, Shikari restaurants, Alenka confectionery, Israeli coffee shops Cofix , COZY HOME home textile stores, Under Armor sportswear stores, MODI household goods, DvizOk street food cafe and others.

Simply put, street retail is a specific store format. The outlet is located on the first floor of a residential building. The first objects of this type appeared in the Middle Ages, but they were mainly narrowly specialized: forges, weaving shops, etc.

The principle of shopping streets is still preserved in Europe, but has practically disappeared in our country. The trend towards the resumption of retail facilities in houses on the first floor has been observed in Russia only in recent decades. And, perhaps, only street retail stores in Moscow can be noted. The main advantages of such premises are:

• being in sight of buyers;
• step-by-step availability;
• customers immediately go to the store;
• free choice of opening hours.

In addition, the rental price may be less than in the shopping center. Any specialization and your own interior design is also a plus.

Street retail premises also have disadvantages. The owner or the tenant needs to take care of the security of the facility, utility bills, synergy (cooperation), coordination of the placement of signs, etc.

What to sell in "shops on the ground floor"

Street retail real estate in Moscow is mainly occupied by fast food chains, shoe stores, cafes and restaurants. However, they can be squeezed out by hairdressing salons, spa-salons and medical centers: their number is growing every year.

The specialists identified the categories of goods that are most often sold in street retail. Half of the segment is divided between products and a food court - 25% each. 10% each for household goods (building materials, appliances, furniture, electronics) and products for children. This is followed by:

• cars;
• sports clubs;
• communication salons and banks;
• cosmetics;
• shoes and clothes.

They have 5% each. The remaining percentages are shared by jewelry stores, gift shops, pet supplies and entertainment.

If you decide to sell luxury perfumes, electronic appliances or open a high-end restaurant, you should consider buying a premise in the city center. In sleeping areas, everyday household goods are very popular.

Street retail prices

Street retail is a real estate format that, as mentioned at the very beginning, will be liquid in any situation on the market for retail space. Based on the latest data from experts, the rental rate in the shopping center ranges from 10 thousand rubles. up to 17 thousand rubles. per square meter, while in street retail it is from 7 thousand rubles. up to 15 thousand rubles. per square meter. The most priority and, therefore, expensive "trade corridors" in Moscow today are:

According to research, in the center of Moscow, business is doing well mainly at grocery stores and restaurants. Shoe and clothing stores report a 30% drop in purchasing power compared to last year.

On the portal site you can choose from a suitable option for this type of real estate. Carry out the search yourself or use the help of a specialist who can competently assess your requirements, wishes and choose the best option for you and your company.

Street retail: tenants return

retail, in percent

Main demand for street retail premises

Review of the street retail market in Moscow based on the results of the first half of 2016

The new look of Moscow streets can give a powerful impetus to the development of the street retail market in 2016-2017

According to the analysts of the Magazin Magazinov company, as a result of the reconstruction, almost the entire city center will benefit. Improving the comfort of outdoor space helps to attract tourist traffic and increase the average time spent by citizens on the streets.

The largest increase in traffic and, accordingly, interest from tenants is expected on Tverskaya Street (the section from Okhotny Ryad to Pushkinskaya Square) and Novy Arbat (to the Garden Ring), which are already in high demand today. It is also worth noting the positive expectations associated with the reconstruction of some sections of the Garden Ring.

There has been an increase in activity on the part of tenants since the second quarter of 2016.

According to the results of the first half of 2016, the share of vacant premises along the main shopping corridors of Moscow within the Garden Ring decreased to 8%, returning to the level of 2014. At the moment, 173 Moscow retail premises within the Garden Ring are not filled with tenants. Vacancy rate in street retail, percent

Note: the average level of vacant premises along the shopping corridors of Moscow within the Garden Ring is indicated.

By the end of the first half of the year, most chains have shown confidence in their development plans, and, therefore, are stepping up work on the selection of premises. Retailers who had previously monitored the market have also started to take action.

Street retail again attracts non-food formats

Today, there is a tendency to restore interest from the segments of clothing-footwear, jewelry, accessories, cosmetics and services - these requests account for more than 21% of the total volume of requests for the selection of premises. This is due to the gradual saturation of the shopping center market and positive expectations of retail chains from street retail. But at the moment it is not necessary to say that this will radically change the balance of power in the market.

Premises in lanes adjacent to high-traffic streets find their tenants

Interestingly, the number of requests for premises that retailers previously tried to avoid has now increased: places located "around the corner" on second lines. Entrepreneurs, getting savings on rent, attract visitors with an unusual concept and marketing activities. As a rule, such formats receive the necessary traffic from the main pedestrian arteries of the city.

It is highly probable that the downward trend in vacancy will continue, and by the end of 2016 it will decrease by another 1-2%.

The interest in premises on Tverskaya Street, Old Arbat, Stoleshnikov Lane, Bolshaya Dmitrovka has increased.

The recovery in tenants' demand is due to an increase in the flow of pedestrians in the already reconstructed areas in the center and adjacent streets. Catering companies are showing more and more interest in Tverskaya and Old Arbat.

Demand is recovering and on Stoleshnikov Pereulok the greatest number of requests is observed from the premium and luxury segments, only 3 premises remain vacant. The flagship Nespresso and the Harry Winston jewelry boutique were outstanding discoveries this half of the year.

Bolshaya Dmitrovka is also gaining popularity: Christian Louboutin shoe boutique, Heineken Bar, Voronezh snack bar, One Pot restaurant, Technikum gastrobistro, Zharovnya restaurant and other catering establishments have opened here.

The main demand for street retail premises is still formed by catering and food retail.

Today, the most popular tenants' requests in the market of the main shopping corridors are cafes and restaurants, which account for 34% of the total demand. The latest trend in public catering is the development of individual concepts of author's cuisine and unique formats: healthy food cafes, craft bars, cheburek, dumplings, mini-coffee shops, etc. Audiences are starting to get fed up with traditional web formats and are looking for gastronomic variety.

The clothing and footwear segment demonstrates a stable demand at the level of 10%. This is due to the fact that the movement of tenants to shopping centers observed in recent years has come to an end. As for banks, their requests have been declining for a long time as a result of the revocation of licenses and the transition to Internet services. However, today, this sector of the market demonstrates stable demand at the level of 3% and this situation will most likely not change in the near future. As for the pharmacy chains, they will develop and increase their presence in the market.

The average cost of premises remains at the level of 2015

Compared to the end of 2015 and the 1st quarter of 2016, the average cost of premises along the main trade corridors of Moscow within the Third Ring Road has not changed. Rental rates are expected to remain at current levels until the end of 2016.

The most significant changes in this half-year took place on Myasnitskaya Street and Petrovka. The growth in the cost of premises by 38% on Myasnitskaya is due to the transformation of the street into an attractive pedestrian zone.

On Petrovka, rental rates fell by 31% as a result of a significant decrease in demand for luxury and premium tenants. If new networks of the same class are not replaced, the concept of the street may completely change towards the lower price segment.

Cost of premises * along the main trade corridors of Moscow, thousand rubles / month

* Indicated are the ranges of the average cost of renting street retail premises with an area of ​​150-200 sq.m, located on the first line of houses within the 6th Third Transport Ring of Moscow, for 1 month, including VAT, as of the end of September 2015.

The cost of premises for cafes and restaurants with an area of ​​100 sq.m.

The minimum budget of cafes and restaurants for renting premises with an area of ​​100-300 sq.m. grew by 6% in comparison with the 1st quarter, and the area of ​​300-1000 sq. m. - by 7%. An increase in demand in this segment provokes an increase in rental rates for premises of such formats.

Changes in the range of the average cost of premises * in the main retail corridors of Moscow, thousand rubles / month

The main trends in street retail for the first half of 2016:

New cafes are opening both in shopping centers and in the street retail format. Market experts have said what problems a tenant faces when choosing premises for placing a catering point, how to better determine the location, footage and rental rates.

Shopping centers vs street retail

It is necessary to make a choice in favor of this or that premises, choosing between a shopping center or street retail, relying, first of all, on the concept of the future establishment, because both the work schedule and the target audience will depend on it. In the first case, family establishments will be more appropriate, in the second - craft bars, cafes with author's cuisine and various thematic places.

An important factor may also be how long the cafe has been operating, whether it is looking after the first premises for itself, or whether it is moving or even expanding the network. In other words, experience and financial reserve will be significant. “For aspiring entrepreneurs and start-ups, placement in street retail is more suitable than in a shopping center,” says Yegor Ostapenko, director of the retail real estate department at Praedium. “Not every new project is able to handle quite high rates in the shopping center and a large security deposit in 2-4 months at once”.

It is worth considering that several key formats are usually presented in district shopping centers. Ivan Tatarinov, commercial director of GLINCOM, notes that the most profitable and most demanded for small entrepreneurs who are ready to invest in the opening of a public catering point from 500 thousand rubles. up to 1 million rubles. is a coffee point. They work even in "weak" properties due to marginality, and they manage to reach operating zero already in the first month of the lease. The second format - a food court - provides for a larger volume of investments, from 2.5 million rubles. “The most successful food court cafes exist in the vicinity of a cinema and an entertainment area. If you are not surrounded by entertainment tenants, you should be very careful about the issue of renting, ”the expert clarifies.

When making a choice between malls and street retail, it also makes sense to weigh the pros and cons of both types of placement. It is believed, for example, that in a shopping center it is easier to predict the average number of customers. “In street retail, you can also measure traffic, but it is less predictable, more dependent on weather conditions, and the qualitative composition of pedestrians may vary depending on location,” explains Natalya Ozernaya, Deputy Head of Street Retail at JLL in Moscow ... The same applies to potential competitors: on the street, they can at any time settle “door to door” and win over customers, while in a shopping center they usually try to keep the balance of the represented companies.

It is also important that the premises in shopping centers are more often equipped taking into account the requirements for public catering, while the location in residential buildings is associated with many additions and necessary approvals with residents. In a residential building, it is also important to ensure that guests do not smoke close to the entrance and windows. If you make a choice in favor of street retail, then already in the place where a cafe was opened earlier or a restaurant worked.

How much to take in "squares"?

Finding a room that would not be excessive in terms of area, but at the same time would not be cramped for future guests of the establishment, is an extremely difficult task, and often almost impossible to solve without a specialist who designs restaurants and cafes. “There is a certain calculation system, which is planned based on the restaurant's menu. The area depends, in particular, on whether the cafe will have a full-cycle kitchen or only pre-cooking, or even ready to do without a kitchen, ”says Yegor Ostapenko. In addition, the number of personnel and the size of the necessary premises for warehouses, refrigeration units, etc. are taken into account. The main hall, in which the visitors will sit, is planned based on the size of the tables and the possible load. “It is also necessary to take into account the rules and regulations, according to which the establishment should have a separate toilet for staff, a shower for cooks, a place for changing clothes for employees,” adds Anton Belykh, CEO of the consulting company DNA Realty. "It will be extremely difficult for one without experience to calculate it."

The amount of space, of course, will depend on both in shopping centers and in the format of street retail, from which, ultimately, you will have to choose. “Coffee points can rent space from a 3-4 square meter rack to small 20 square meters. m. For a food court, the most demanded area is in the range of 25-65 sq. m. m. If an entrepreneur opens a cafe on a franchise, then he orients himself in choosing an area on the requirements of the owners, already clearly spelled out in the franchise, ”explains Ivan Tatarinov.

In contrast to the technological subtleties, the adequacy of the proposed rental rate can be judged independently by referring to the analytical calculations of market experts. According to Knight Frank, the average rates for a 200 sq. m in the center of Moscow can be 65-75 thousand rubles, and in top locations it can reach 90-120 thousand rubles. The average rate in residential areas is 40-45 thousand rubles. per sq. m per year. “Rates for premises in sleeping bags, but in line of sight from the metro, are often comparable to rates on central streets, thanks to the daily flow of pedestrians from the metro,” notes Natalya Ozernaya, deputy head of street retail at JLL in Moscow.

Source: JLL.

How do you make a choice? Anton Belykh is sure: in no case should a psychological line be set - for example, "not to pay more than a million rubles a month for rent." “I know restaurants that pay 3-5 million a month for premises and still thrive. And there are establishments that pay 100 thousand and can hardly make ends meet or even work at a loss, - the expert explains. "When assessing the rental rate, you should take into account not your own internal psychological constraints, but the real traffic of the place, its coincidence with your target audience and make miscalculations of the expected revenue using modern systems."

Determine the location

When considering space in a shopping center, one can often come across a prejudice against strong tenants in the neighborhood at a food court, especially the “big three”: McDonald’s, Burger King, KFC. Ivan Tatarinov believes: “A quality and interesting product will not suffer from competition with strong global brands. For example, burger shops are able to very successfully adjust from similar offers in the mass segment due to the author's product, a more individual approach. "

Another misconception is that cafes feel good only in the center of Moscow. “There are also many successful establishments in residential areas and on outbound routes. Here it is necessary to take into account the specifics of the area. For example, in Perovo it is better to open something very budgetary, and on Michurinsky Prospekt, a steakhouse is quite suitable. Also, restaurateurs are interested in large residential areas with a huge number of new housing, which is mainly bought or rented by the middle class, ”says Anton Belykh.

In the street retail format, pedestrian zones are traditionally successful places for cafes, the number of which has recently increased in the center of Moscow. It is good if there is an attraction or a place of recreation for the townspeople nearby. Premises located near the metro are also in demand. “Promising, with a high development potential, in my opinion, are premises in lofts located on the territories of former factories. A striking example is the opening of the Syrovarnya restaurant on the territory of the Badayevsky brewery, which became an anchor and was joined by a number of other projects: Deep Space, The 12 Wine Bar, Letniy Sad, ”says Victoria Kamlyuk, director of the company's street retail business. Knight Frank.

As for the location in the center, here in recent years another important concern has arisen - work on the reconstruction and improvement of territories. Constant construction does little to attract customers, especially for cafes who would like to organize summer verandas. “You shouldn't be afraid of street improvement work and leave,” Victoria Kamlyuk is sure. “We need to negotiate with the landlord a 10-30% discount for the renovation period.” Yegor Ostapenko fully agrees with the opinion that the renovation is quite possible to “survive”: “Speaking about the improvement, it should be noted that if the institution has a certain financial margin of safety, then it is better to wait out this period than to move out. The reconstruction will be over, and the street will be transformed, and next season the cafe has a chance to recoup its losses and increase its income. "

The market for retail premises on the first floors demonstrates stability: vacancy in the city center is gradually decreasing and returning to the level of 2014, rental rates have stabilized, demand for high-quality premises is growing - all this together makes it possible for an investor to predict the payback period of their investments with high confidence.

Street retail premises, as a rule, mean objects, the main trading area of ​​which is located on the first floors of buildings (residential or non-residential), with separate entrance groups, showcase glazing with the ability to place a corporate sign above the entrance, equipped with the necessary engineering communications to accommodate a high-quality network trade, catering, banks, as well as corporate offices of companies for the placement of sales offices. The premises may include basements and mezzanines or second floors.

The area of ​​the premises can vary greatly, while on average we are talking about the range from 50 to 400 sq. m, which is also popular among tenants' requests. At the same time, the total area of ​​the object may exceed 1,000 square meters. m, however, preference should be given to the premises located as much as possible on the ground floor.

Investors are more likely to consider street retail in the city center, at the same time, the necessary profitability indicators, if correctly estimated, can also provide backbone retail on avenues with high traffic and parking, as well as premises in residential areas at metro exits or in the center of residential array.

A private investor with no experience in owning and managing commercial real estate may choose to purchase ready-made rental business either an object demanding additional investments to increase profitability. Let's take a closer look at these options:

Ready-made rental business- premises with a registered lease agreement. A long-term contract (on average 5-7 years) allows you to forecast income for the entire period.

The sale of a ready-made rental business in Moscow is mainly carried out using a gross lease multiplier, which on average varies from 8 to 12 years, while in premium locations the payback period can reach 15 years. In a simplified form, the attractiveness of investments in retail real estate in the street retail format can be calculated using the following formula:

Purchase price = income from the first year of lease * M,

where M is the multiplier, the expected payback period in years.

In this case, the income of the first year of the lease is considered net of VAT and utility costs.

Purchase of premises requiring additional investments- we can talk about a premise that is not encumbered in the form of a long-term lease agreement (it may be vacant at the time of sale or have a short-term lease agreement at a rate below market) and / or requiring investment to improve the physical condition of the object.

Such premises are usually cheaper than a ready-made rental business, as the new owner has to spend time and resources searching for a tenant. Also, the discount may be associated with the need for investments in the renovation of the premises, the purchase of additional electrical power or the organization of additional entrances to the premises.

There is a popular strategy of buying an object on the market, which can later be divided into several lots and leased to several tenants. Thus, it is possible to increase the profitability of the entire project by applying the rule of the inverse relationship of the rental rate: the larger the area of ​​the premises, the lower the rate. In a simplified form, you can also apply a formula with a multiplier of 5 to 9 years.

It should be noted that, despite the generally more attractive payback period in comparison with a ready-made business, this type of investment can be preferable only for players who have experience in the street retail market and understand its specifics. Higher profitability in most cases is associated with increased risks, including potential delays in the approval of redevelopment, legalization of changes in the object, an extended search period for tenants and other unforeseen circumstances.

There is no concept of "average price" in the street retail market - the cost of two adjacent premises can differ significantly. At the same time, relying on the formula for calculating the attractiveness of investments, we can talk, for example, about the following benchmarks:

1. The rental rate on Petrovka today is at the level of 130,000 rubles per sq. M. m per year. For a room with an area of ​​200 sq. m, the annual rental flow will be 26 million rubles, which means the price of such a room with a tenant is more than 260 million rubles. And taking into account that Petrovka is a premium street, it is worth setting the specified maximum multiplier - 15, and the price will be 390 million rubles.
2. The first line of the Varshavskoe shosse is a thoroughfare, primarily focused on car traffic. Premises with an area of ​​200 sq. m can cost 500,000 rubles per month of rent, in which case it could be sold empty for an 8-year payback period - 48 million rubles. If there is a tenant in the premises on a long-term contract, you can sell for a 10-year payback period (60 million rubles).
3. The average rental rate on Pyatnitskaya Street is 110,000 rubles per square meter per year. Let's say a room with an area of ​​100 sq. m with a tenant who pays such a rate. It turns out 11 million rubles in annual rental income, respectively, the sale of such a ready-made rental business will cost 110 million rubles.

We are often asked which tenant is more stable and profitable. Grocery stores are considered to be the most resilient, as consumers continue to buy groceries even during difficult times. Of course, a grocery operator (primarily a network operator) is a good choice in many cases, but other profiles can demonstrate no less stability for a lessor. For example, a room that meets the requirements of public catering: such offers are in high demand, which means that rotation in such facilities is easier. Separately, it is worth highlighting international brands that open stores in the city center, flagship formats, with significant investments, including in marketing, which they are also interested in recouping. With a long-term lease agreement, such a brand can also act as a guarantee of stability.