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Retail By City

St PetersburgRussian Federation

city rank #65

City Overview

Saint Petersburg is situated on the Neva River and has access to the Finsky Gulf on the west. With a population of 4.5 million and covering an area of 1,439 sq km, it is the second largest city in Russia. It is also a major tourist destination, attracting millions of visitors as a result of its historical heritage, architecture, and culture. The retail property market in St. Petersburg is considered to be the most developed in Russia and has one of the highest stock of retail space per capita in the country. The existing supply satisfies demand but the quality of the stock varies. St. Petersburg's retail market offers little beyond the basic retail formats, such as shopping and entertainment centers and hypermarkets. St. Petersburg's real estate market currently has no examples of either the lifestyle centre or outlet centre format - two such projects are under construction. By the end of first half of 2014, the total stock of shopping malls in St. Petersburg amounted to 4.33 million sq m. In the 1st half of 2014 one shopping center was opened: SEC Galaktika on Moskovskoe highway with the GLA of 21,000 sq m. Besides, in the nearest future retail&entertainment center Podsolnukh at the intersection of Savushkina str. and Primorskoe high-way will be closed for reconception. In the end of 2014 it is planned to be re-opened as an outlet center. The re-conception trend on retail market continues to develop. A number of shopping centers built in St. Petersburg in the first half of the 2000's and earlier, are outdated and need revision of concepts. Therefore, more and more owners of shopping centers conduct re-conception of their projects, the purpose of which is to increase the profitability and investment attractiveness of buildings. Today, more than 1 million sq m of retail space, which is 25% of the total market, need renovation and re-conception. Despite the fact that there is a high saturation of shopping centers in St. Petersburg, in comparison with other Russian cities, there is over 600,000 square meters of shopping centers under construction, with planned openings before the end of 2016. On average in 1H 2014, across the city the level of occupancy in shopping centers amounted to 93-95%. As before and during the crisis, successful projects were 100% occupied, and most of them have waiting lists (for example, at Gallery, Stockmann Nevsky Center). The average level of occupancy continues to increase even in those projects that have unsuccessful location, poor concept and high rental rates. In 1st half 2014 requested rental rates in shopping centers haven?t changed significantly. For existing tenants rental rates were growing according to the escalation in the agreement (5-10%).

Things to do

See

Work

Nevsky, Stockmann Nevsky Centre and Gallery (in the city centre)

Rest

Dvortsovaya square and Hermitage, Petrodvorets. A boat trip on Neva River and channels under drawbridges during the white nights

And be seen

Eat

Russian food in Palkin restaurant, Ginza restaurants (Terrassa, Capuletti, Mamalyga, Baranka, Mari Vanna, etc.), Teremok café (for pancakes)

Drink

Kvass

Be Merry

Volga-Volga boat restaurant, jazz boat, XXX Clubs

Other Cities in Russian Federation

Contact Us

MICHAEL ROGOZHIN
BC OKO, Moscow-City
1 Krasnogvardeysky pr-d, 21, bld. 1, 29th floor
873306 | Michael.Rogozhin@cbre.com