Store rental rates ap­pear to be bot­tom­ing out

Kathimerini English - - Focus - NIKOS ROUSSANOGLOU

The rental rates of stores in At­tica ap­pear to be close to bot­tom­ing out as the first signs of re­cov­ery are emerg­ing on the most pop­u­lar shop­ping streets in the cap­i­tal, while the stock of empty spa­ces is grad­u­ally de­creas­ing.

Ac­cord­ing to a sur­vey by Col­liers In­ter­na­tional, the av­er­age monthly cost of rent­ing a store in Athens is 130 eu­ros per square me­ter, with the prop­erty con­sul­tancy com­pany’s an­a­lysts es­ti­mat­ing that lease rates will drop grad­u­ally over the next 12 months.

In re­la­tion to the rest of Eu- rope, store rental rates in Athens are par­tic­u­larly com­pet­i­tive, trail­ing those of other coun­tries in the Euro­pean south: In Madrid and Barcelona the av­er­age monthly rate stands at 240 and 220 eu­ros/sq.m. re­spec­tively, while in Rome it is 570 eu­ros/sq.m. In Is­tan­bul the av­er­age monthly lease rate is 145 eu­ros/sq.m.

How­ever, ac­cord­ing to sec­tor pro­fes­sion­als, the de­cline in store rental rates now only con­cerns sec­ondary streets and ar­eas of low com­mer­cial value. This is con­firmed by records com­piled by the Bank of Greece, as, ac­cord­ing to data pub­lished a few days ago for the first half of this year, rates fell by just 0.3 per­cent com­pared to the sec­ond half of 2015.

Re­tail chains agree that the most pop­u­lar lo­ca­tions in the cap­i­tal will be filled in the com­ing months, so this is seen as an ideal time for get­ting a foothold in the mar­ket as rents re­main ex­cep­tion­ally low, hav­ing de­clined by some 40 to 60 per­cent since the be­gin­ning of the fi­nan­cial cri­sis.

Newspapers in English

Newspapers from Greece

© PressReader. All rights reserved.