The first rent reductions are recorded even in popular shopping areas
Pressures have been recorded lately in commercial stores rents. Although until now the market has shown strong resilience to the crisis caused by the pandemic, the successive lockdowns that have kept retailers closed for a long period of time have created pressures leading to declining in prices - limited at the moment - even in strong shopping areas.
As measures are taken to deal with the pandemic, it is clear that rents will continue to feel the pressure, as they must reflect the potential revenue of any commercial property. Thus, in popular shopping areas, such as Ermou St., Kifissia and Glyfada, we have a decrease in rents of 7.15%, while the first reductions are also recorded in Ermou St.
According to a Proprius report, which represents the international group Cushman & Wakefield in the Greek market, during the fourth quarter of 2020 and especially towards the end of the year, the downward pressure on rent prices of commercial stores became apparent. This development is due to the expected decline in demand.
For example, according to Proprius data, on Ermou St, the monthly cost for a store near Syntagma Square, was, at the end of 2020, at 260 euros / sq.m., against 280 euros / sq.m. at the end of 2019.Proprius notes that rent corrections are now widespread throughout the market, as new leases are declining, especially after the second wave of restrictions on circulation.
The biggest problem is recorded in clothing and footwear stores and in the food service industry (eg bakeries, cafés, restaurants). The investment activity also follows the general downward trend. According to analysts, investors willing to acquire a commercial store, will now focus on property, which will offer a stable and guaranteed income, ie in the most commercial areas of the most popular streets.
