The pandemic did not affect development activity in Moscow, with construction of most previously announced shopping malls continuing. The opening of some objects was postponed from 2020 to 2021. The new delivery volume may double in 2021 and reach 500,000 sq m.
At the end of 2020, the Moscow shopping mall vacancy rate reached 9.3%, an increase of 3.7 p.p. over the year. The growth in the vacancy rates for blocks up to 250 sq m in Moscow’s shopping malls will continue to increase in 2021.
Most Moscow shopping mall landlords provided discounts on rent while retail operator activities were suspended and after reopening. Rental rates will continue to decline, and discounts will remain under the current lease agreements for cinemas, restaurants and cafes.