baltic states and belarus real estate market review - Colliers

Real Estate Market Review 2011 | Estonia Retail Market
Tendencies
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Sales figures remained lower YOY at the
beginning of 2010, but improved
gradually and turned positive in the third
quarter of 2010.
Surprisingly, the market saw substantial
development activity in Tallinn with
Bauhaus opening 20,000 sqm of new
floor area in April and Kristiine Shopping
Centre opening its 20,000 sqm
extension in September.
Vacancy rates in larger shopping centres
remained effectively at zero, although
high and perhaps still rising elsewhere;
As it is more difficult for landlords to
find new tenants for the vacant premises
with the same terms and rental level
than a few years ago, landlords are
more interested in keeping good tenantlandlord
relations.
The Estonian retail market is too
dependant on several retail chains
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performance. Insolvency of one single
retail chain may lead to considerable
leap in vacancy rates across Estonia.
Despite an improved global economic
outlook, retailers are still expressing
caution in terms of expanding and
committing to new stores.
Possible development in the retail sector
depends not only on recovery of
domestic consumption in Estonia but to
a great extent also on financing
availability. Innovation will be more
crucial than ever concerning supply of
new premises in the future - unique
concepts of retail-leisure centres and
new brands will gain an advantage.
Rental rates for anchor tenants are
expected to remain stable. The main
changes are expected in rent levels of
smaller retail units. Future rent rates
will depend on retailers’ performance as
well as supply of new premises
(completion of several big retail
projects/retail parks).
CONTACT: AVO RÕÕMUSSAAR - a.roomussaar@colliers.ee
Colliers International | p. 62