The cost of renting stores at the most popular trading “sites” of Athens was in the process of correction during the first quarter of this year.
While several new leases have been registered and new retail chains have emerged from overseas, the market appears to be moving towards more conservative options, both in terms of the size of the leased property and the size of the rent.
In fact, according to the latest quarterly survey by real estate company Proprius, Ermou street in the center of Athens has not escaped the above trends, as the average rents for shops near Syntagma Square (i.e. the most expensive section of the road) fell to 250 € / sq. 260 euro / sq.m. in the last months of 2020. At the same time, before the pandemic, at the end of 2019, it was 280 euros / sq.m .. This is a rather noticeable decrease in prices on the most expensive commercial street in the country, where there was a sharp increase in rental prices before the pandemic.
A similar decrease was also recorded in the shopping districts of Kifissia, Glyfada, Piraeus and Tsimiski (Thessaloniki), while the average store rent is now 110 euro / sq.m, 125 euro / sq.m, 75 euro / sq.m. and 125 euro / sq.m. respectively. At the same time, as Proprius points out in its analysis, new rental rates have declined since before the pandemic, although owners continue to “hold the price” in the most convenient commercial locations.
There is no doubt that this demand now concerns small stores, while the number of new chains on the market has noticeably decreased. Among other things, during the first quarter of 2021, new leases were registered, such as Parex Shoes on Ermou Street (110 sqm), and two properties were leased in Glyfada: one from Kiko Milano on Metaxa Street (155 sq. .m.), and another from the network of sporting goods, which is located on a plot of 210 sq.m. at Esperidon Square.
New supermarkets in Larissa, Tripoli and Thessaloniki were opened by a Russian chain MERE, which thus entered the Greek market. By the end of 2021, it is planned to open 80 stores. Jysk, a Danish home improvement store chain, has continued its development plan across the country by continuing to operate its 42nd store, this time in Argos. Intersport opened a new store in Peristeri and Cosmos Sport in Nea Smyrni, and Fixers opened a new store in Piraeus. Madiz also opened his new store in Kifissia.
However, if we take into account the fact that during most of the first quarter of this year, retail trade has “slipped significantly”, then the recorded activity is impressive. According to real estate experts, as retail stores normalize in the coming months and consumption grows, the commercial store market image will be restored accordingly.
However, there is now an understanding of the growing share of e-commerce that is expected to diversify the design and needs of many networks in the coming years. In this context, a widespread reorganization of the network of many companies is expected, with stores located in secondary and less commercial markets being more “vulnerable”.
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