Warsaw, June 18, 2018 – With news that more than one million* football fans are due to descend upon Moscow for the 2018 FIFA World Cup Russia™, global real estate advisor, Colliers International, predicts that the event is expected to have a significant impact on vacancy rates in Moscow's retail property market, calculating that the demand for short-term leases from retail and food and beverage (F&B) operators in tourist hotspots could increase by 10 to 20 per cent.
Ekaterina Podlesnykh, head of street retail, Colliers International Russia commented: “It is likely that retailers wishing to capitalise on the World Cup will look for opportunities in areas of high tourist flow and will sign shorter, three to five-year leases, as opposed to a typical five to seven-year lease. Properties that require less capital expenditure, especially those that have the option of withdrawing from the contract, will be particularly attractive.
“As to what type of retail is most likely to grow, we expect food service demand in Russia to expand by around 10 per cent in the run-up to the World Cup championship. The proportion of food services in the tenant structure is anticipated to increase from a 39 per cent share, to 41 to 42 per cent, as F&B operators seek to satisfy the demands of hungry football fans and tourists. Cosmetic and sporting goods retailers are also competing for retail space in places with potentially concentrated tourist streams, with a view to boosting exposure and sales. This trend is particularly evident in Moscow, which is not only the main gateway city for tourists, but is also hosting the lion’s share of football matches.”
In its analysis, Colliers forecasts vacancy rates to decrease in the tourist hotspots of Arbat; Nikolskaya; Tverskaya; Kuznetsky Most; Novy Arbat; Bolshaya Dmitrovka; and Petrovka.
*According to various forecasts, including those by the Russian Federal Agency for Tourism and the Moscow Sports and Tourism Department, 1-1.5 million visitors could visit the capital during the World Cup (June 14 to July 15).