Margarita Zaeva, head of retail real estate at ILM, took part in the REX Retail Meeting. The event was held on January 28 in the cafe "Shardam" on Krymsky Val. Among the participants of the company: IKEA Centers Russia Romanov Property Holdings Fund IMMOCHAN Russia TriGranit Management Rus SRV 360 DARS Development Gallery Chizhov Key topics: - Tenant-mix of a shopping center: how to keep the minimum level of vacancy after the fact that foreign brands have left the market? - Russian retail groups: how to build a brand portfolio and which concepts to develop to minimize the economic risks? Which product groups show the most sustainability today? - Domestic brands that entered the market in the 90s: what changes in the company's strategy? Is there a launch of new brands, concepts, formats within the corporation? What is the rental structure that is optimal for maintaining profitability and acceptable to the landlord? - Domestic brands that entered the market in zero years: what are the main risks today? How do you adjust the business model? What are your development plans and rental expectations? - Launch of new retail concepts: are there any niches today and, most importantly, economic conditions for entering the market? What are the conditions for success? How do you plan to solve the problem of rent, given the lack of acceptable funding for startups?    

Today, an excess supply of office space has formed on the Moscow office real estate market — 3.15 million sq. m. remain free, say the analysts  of ILM company. They add that the market will be balanced when 1.8 million sq.m. will be free. "But in the next 2-3 years we see no prerequisites for the creation of 200 thousand new office working places, which will allow vacancies to reach 10% in the market," experts comment, adding that one of the possible scenarios for getting out of this situation is the accelerated conversion of office space in industrial zones to other segments of real estate (housing, apartments, shopping areas and warehouses). All this will lead to the migration of tenants to high-quality office facilities. "After 2014, when the volume of office space commissioned was record-breaking over the past 5 years, 2015 showed a slowdown in new construction. Such a decrease in construction activity resulted from a reduction in demand amid a high volume of premises commissioned in 2014, which the market did not manage to absorb. The deadlines for delivering a large number of objects were transferred to later periods. In 2016, the input volume may become lower: according to our expectations, about 550-600 thousand sq.m. will be introduced to the market ", - say analysts. Moscow. INTERFAX REAL ESTATE

The sharp fluctuations in the course currency adversely affected the cost of renting offices. Tenant companies whose rental rates were fixed in dollars in the lease agreement have significantly increased rental rates since the beginning of the year. It is quite obvious that in the current economic situation, the question of reducing the cost of renting offices is quite acute, so tenants are ready to enter into negotiations with the owners on the subject of transferring rental payments from dollars to Russian currency. Taking into account the growing level of vacant space and a record volume of commissioning of new construction in 2014 (for the nine months of 2014 a total of 966 thousand square meters were commissioned and by the end of the year another 600 thousand square meters were announced, which is a record for last 5 years), we see that today tenants have a choice - to stay in the current office and pay a high rent, or move to a higher-quality facility on favorable terms for the current market. Accordingly, the situation when demand is falling, supply is increasing and the rental price is growing, it is absolutely non-market, therefore the tenants' desire to reduce rental costs is quite logical. It is worth noting that the owners today are flexible and ready to make concessions to tenants, fixing rates in rubles, not being tied to the dollar rate, as well as fixing the boundaries of the currency corridor. ILM consultants are ready to assist you in optimizing your office rental costs. We understand that real estate decisions have a significant impact on your business plans and financial results. That is why we are ready to offer you possible scenarios for optimizing the operating costs of renting an office now. In the process of working together, we will work out in detail the tasks and goals that are achievable in negotiations with landlords, taking into account the needs of your company in the field of real estate. We have already helped to reduce rental costs to dozens of Russian and international companies (see examples) and are fully confident that we will achieve significant savings for your company by providing quality services that meet the highest international standards. As a rule, the result of our work is to reduce the cost of renting office space for our clients by 10 - 40%. If you are interested in the issue of reducing the cost of renting an office, call us: +7 (495) 287 06 00 . We will be happy to advise you at the meeting and discuss all the details.