Average vacancy of shopping centers in Chernivtsi is growing, and in May it reached 11.2%. By the end of 2022, it is planned that total supply of retail space would expand by 47,500 square meters thanks to the opening of two new shopping and entertainment centers, UTG consulting company (Kyiv) has reported.
“In 2021-2022, the opening of the Maidan-2 shopping center (12, Independence Avenue, gross lettable area (GLA) is 38,500 square meters) and another shopping and entertainment center in Heroyiv Maidanu Street (GLA – 9,100 square meters) is planned. In general, most of the existing and leading shopping centers opened in 2004-2014 are now morally and physically outdated. Despite the high level of supply of retail space, the main urban shopping center has not yet appeared in Chernivtsi,” UTG analyst Oksana Gavrilevich told Interfax-Ukraine.
At the same time, according to UTG, the deadlines for opening the Riazan shopping center (56, Heroyiv Maidanu Street, GLA is 3,500 square meters), the Furshet shopping and entertainment center located at 11, Galytsky Shiakh Street (GLA – 18,900 square meters) are postponed for an unlimited period of time.
“By the beginning of May in Chernivtsi there is a surplus of retail premises in the amount of 2,800 0 square meters. In case of enhancing construction activity and timely commissioning of the declared facilities, the surplus will increase to 50,500 square meters, which will inevitably lead to overflow of visitors and tenants to more successful and modern shopping centers, an increase in vacancy and a review of rentals downwards, especially in morally and technically obsolete non-professional facilities,” Gavrilevich said.
According to UTG estimates, at the beginning of May 2019, five district, two residential district and nine specialized shopping centers and three detached supermarkets and a hypermarket were operating in Chernivtsi.
According to the ICSC classification, the total area of the city’s retail facilities is 122,900 square meters, which corresponds to 464.2 square meters per 1,000 inhabitants or 808.3 square meters per square km of total area of Chernivtsi.
The maximum rental rates are typical for shopping centers in the suburban districts of the city and are $11-26 per square meter a month. Minimum rental rates are fixed in the shopping center, remote from the city center or specialized ones and they are $8-12 per square meter a month, the expert said.
