Difficult times - difficult decisions. A brief overview of network expansion in the western region of Ukraine

Starting from February 24, 2022. the lives of all citizens of our country were divided into "before" and "after". The defense of Ukraine, the help of the Armed Forces, comprehensive faith and support for our victory and, as the reverse side of the medal, complete uncertainty and uncertainty in the future. These problems do not bypass trade networks. The complete or partial destruction of retail outlets, work stoppages in the occupied territories, disruptions in logistics, a drop in the level of solvency of the population, lack of personnel - this is far from a complete list of problems faced by the business. But, like the phoenix bird, which renews itself every day from the ashes for the sake of life, business is looking for opportunities for preservation and renewal. Today, the company "Ukrainian Consult Group" will conduct a brief analysis of the commercial real estate market in western Ukraine and the interest in the expansion of market operators.

The western region of Ukraine, and in previous years, has always been the subject of interest of retailers, and now especially so. Let's divide commercial real estate into two streams: the first is shopping malls and shopping centers, the second is street retail. We would like to draw your attention to the fact that both directions now show a low vacancy, which is not typical for this period of the year and is due to the fact that the operators were given a discount for the military period. But now many landlords are planning to return to pre-war rental rates, which will lead to the appearance of vacant spaces of various formats. Paying rent with interest from turnover is becoming more relevant, which stabilizes the financial relations of the parties in the rental relationship. The weakness of this form of payment is the lack of trust in the objectivity of information regarding the gross profit and the desire of landlords to receive a projected income. As in previous years, there is a lack of large shopping areas, which is traditionally not well represented in the west of Ukraine and was compensated by construction in the pre-war period.

Regarding the profile of networks that scale in the west of Ukraine. First of all, these are food chains, in the "supermarket" format, which implement pre-war projects and also develop new areas. The working areas of this profile range from 300 to 2,600 square meters. The second most active is the "drug store" format, which is interested in areas of 150-250 square meters. The third are traditionally pharmacy chains that are consolidating their presence in the region. This is due to the loss of some retail outlets in the war zone. Format from 51 to 100 square meters. The fourth point is that we have shops near the house in the format of specialized meat and fish shops, as well as pet stores. Areas from 45 to 100 square meters. Fashionable clothing chains of Ukrainian manufacturers are the fifth. Format from 60 to 100 square meters. You should also pay attention to the networks of the fashion segment, which are oriented towards the "middle minus" buyer. They are interested in areas of 500-2500 square meters. Weak activity is shown by electronics stores, which are now being optimized more.

In connection with the demand for high-quality commercial real estate, which exceeds the supply and the freezing of most development projects on the market, in the near future there will be a qualitative replacement of tenants with more iconic and intermediate ones, as well as the absorption of networks, which will be more pronounced than in previous years. Network mergers are also possible in order to maintain market positions.

The company "Ukrainian Consult Group", which provides a full range of services in the field of commercial real estate, is ready to assist in the implementation of projects of any complexity for our esteemed customers and clients.