Real estate: Shop rents have returned to pre-pandemic levels

Rentals offered in Athens, Piraeus, Kifisia, Glyfada, Thessaloniki, Patras and Heraklion – from and where new stores are opening

The retail industry has finally left the effects of the Covid-19 crisis behind, and despite inflationary pressure on consumers’ disposable incomes, it appears to be being kept on a growth path.

Of course, the positive momentum “touches” the popular commercial squares and selectively on the real estate stocks on the “second” street, with the growing gap between the shops in the main markets and those in the secondary markets.

Compared to 2019, the last “normal” year before the pandemic, store rents in most popular commercial markets, which are included in Cushman & Wakefield’s quarterly Proprius surveys, have covered losses and in some areas are even rising slightly due to limited supply.

60 new deals

In particular, Cushman & Wakefield Proprius recorded 60 new retail leases in the first quarter of 2023 in its prime shopping districts, an increase of 40% compared to the fourth quarter of 2022, with high street demand for malls.

About 40 conventions are registered in Athens, with an area of ​​20,000 square metres. of retail space.

Who opened new stores?

During the first quarter, a number of notable openings were made, including the opening of the first Sinsay store in Greece, specifically in Heraklion, Crete.

Turkish clothing chain LC Waikiki has also opened a store in Crete, while Holland & Barrett, developed by Fourlis Group, has opened three stores in Glyfada, Kifissia and The Mall Athens.

Pepco continued its expansion plan with the opening of 3 stores in Athens, Corinth and Xanthi while Ecco, the Danish shoe retailer, secured 2 new stores on Ermou Street and Sports Vision covering an area of ​​550 square metres. in Patras and one in Tzimiske in Thessaloniki.

In addition, the construction company Ten Brinke announced agreements with the Masoutis supermarket chain and the Max Stores toy chain for a project of 5,100 square meters. Along Vouliagmeni Street, Oysho will move to the former Bershka store in Tsimiski, McDonalds will open a store on Aeropagitou Street, in the city center, and Zakcret will open three new stores.

In terms of investment agreements, the largest relates to Lidl Hellas’ purchase of the property at 257 Mesogeion Street that belongs to Miele, with the possible construction of a new supermarket there. For many years, Miele’s headquarters as well as the company’s retail store were located on this property.

Track rents and returns

According to the latest quarterly survey by Proprius, which in Greece represents the international real estate services company Cushman & Wakefiel, renting a well-located store on Ermou Street today costs around €280/m2/month, compared to the rent required in 2019 as well.

Accordingly, the cost of monthly rent in Kifisia is 110 € / sqm. And in Glyfada, at 145 euros / square metre. From 130 euros / sqm. a year ago and 125 euros / sqm. in 2019.

In Kolonaki, rental prices are as low as 100€/sqm. Relatively increased compared to 2019, while rents are also on the rise in the central commercial streets of Patras.

The main yield remained stable except for Ermou’s yields, which contracted slightly due to limited supply.

source: extra time