30 25 20 15 10 5
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017F
0 -5
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017F
AVERAGE SALARY PER MONTH (BRUTTO), € 1000 900 800 700 600 500 400 300 200 100
AVERAGE MALL RENTS, €/SQM 28 26 24 22
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017F
20 18
TOTAL LEASABLE SPACE IN SHOPPING CENTRES, SQM 800 K 700 K 600 K 500 K 400 K 300 K 200 K
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017F
100 K
RETAIL INVESTMENT YIELDS, % 20 18 16 14 12 10
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017F
8 6
END2016 SNAPSHOT / RIGA
TOTAL LEASABLE SPACE IN SHOPPING CENTRES TOTAL SHOPPING CENTRE SPACE PER CAPITA RETAIL RENTS FOR ANCHOR TENANTS (SQM / month)
649,000 SQM
1.01 SQM
€5.00 - €9.00
RETAIL RENTS FOR MEDIUM SIZED UNITS (SQM / month)
€15.00 - €35.00
RETAIL RENTS FOR SMALL SIZED UNITS (SQM / month)
€25.00 - €50.00
HIGH STREETS RENTS (SQM / month)
€20.00 - €50.00
CHANGES IN OWNERSHIP OF SHOPPING CENTRES PROMISING OUTLOOK FOR FURTHER DEVELOPMENT
SUPPLY No new shopping centres (counting those over 5,000 sqm of GLA with over 10 tenants) or other retail schemes were opened in Riga in 2016. At the end of 2016, Riga had 649,000 sqm of total leasable space in shopping centres. Currently Riga has 1.01 sqm of shopping area per capita. However, some new retail areas were due to optimisation of existing retail units. The availability of space in the largest shopping centres in Riga at the end of 2016 was around 4%. However, even though there is available space in some shopping centres, the landlords are paying more attention to the quality of tenants for maintaining and improving their own concepts, and are actively working on better customer satisfaction by paying more attention to the entertainment areas. For example, more fitness centres have become involved in traditional shopping centres. Spice, Alfa, Galleria Centrs, Mols and Riga Plaza, the most
RETAIL MARKET
35
RETAIL MARKET RETAIL MARKET RETAIL MARKET RETAIL MARKET RETAIL MARKET RETAIL MARKET RETAIL MARKET RETAIL MARKET RETAIL MARKET RETAIL MARKET RETAIL MARKET RETAIL MARKET
AVERAGE SALARY GROWTH, %