More than 150 new lease agreements are calculated commercial stores in the most popular “squares” of the country, both in Attica and in other cities, such as e.g. Thessaloniki (Tsimiski Street) or Patra. According to the data of its latest quarterly analysis CW Proprius, during this year’s third quarter a total of 52 new leases were recorded, a number that was higher by 30% compared to the immediately preceding quarter, but also by 25% compared to the corresponding period last year. It is recalled that during the first half of the year, around 100 new store lease agreements were signed.
Prices are stable
As for the prices of rents, however, they remain stable, with minimal deviations during the current year. Even on Ermou Street, which is by far the most expensive shopping street in the country, the rental cost for a store near Syntagma Square is currently 290 euros/sq.m., up from 280 euros/sq.m. at the beginning of the year, a very small difference.
In Cushman & Wakefield’s recent global report, Ermou Street maintained its 15th place in the global ranking, with rents on par with pre-pandemic levels and slightly higher year-on-year. “The durability of the rents is mainly a result of the low availability of spaces in Ermou, the competition between traders to secure a central store in this market and also the tourist traffic, in combination with the improvement of the indicators in relation to consumption, expectations, liquidity, etc. etc.”, says the managing director of Cushman & Wakefield Proprius Niki Sympoura.
The stability of rents even on Hermou Street, which also acts as a barometer for the whole market, shows that the market has found its new equilibrium and the chains are no longer willing to pay as much to secure a place in a popular commercial road. This trend has been consolidated after the growth of e-commerce in recent years, a sector in which most large groups have invested, especially since the pandemic period.
New leases increased by 30% in the third quarter compared to the same period last year.
This phenomenon has also diversified the overall behavior of the retail market, curbing the excesses of the past, especially in the period before the financial crisis, when the “air” payment phenomenon was dominant.
At that time, the competition of the chains was such, especially for a place on Ermou Street or in Kolonaki, that millions of euros were paid just to prematurely terminate a lease, so that the corresponding store would be empty.
Today, as reported by CW Proprius, although there are cases of leases being paid and “air”, this is by no means the norm in the market.
Such transactions are now measured and concern only the very central and popular points of the commercial streets and mainly Ermou and Kolonaki, areas that are also favored by tourist traffic.
The new agreements
Among the new lease agreements in the third quarter are those of the Juicy Couture and JD Sports chains to lease new stores in the Glyfada area. Oysho opened a new store on Tsimiski Street ThessalonikiFolli Follie in her Heraklion Crete and Kiko Milano in the area of Neo Psychikos. Accordingly, the Intersport chain opened a new store in Pagrati and the newly arrived sports footwear chain Tike opened a new store in the center of Athens.
most popular “markets” of the country so far this year. Rents in Ermou – near Syntagmatos Square – are 290 euros/sq.m., in Kolonaki 105 euros/sq.m., in Glyfada 145 euros/sq.m. and in Kifissia 110 euros/sq.m. Although there are cases of “air” rents being paid, this is no longer the norm in the market. [ΑΠΕ]
Commercial parks
Regarding new leases in shopping parks and discount centers, CW Proprius notes the opening of a Massimo Dutti store in Smart Park, as well as the new IKEA in Florida 1, Thessaloniki. The Sinsay chain also opened new stores at both Florida 1 and its Fashion City Outlet Larisain which the toy chain Moustakas Toys was also placed.
Correspondingly in the malls, Porsche opened a new store at the Golden Hall in Maroussi, while a new store of The Big Bad Wolf chain was inaugurated at Mall Athens. A store of the fashion chain Alter and Mat operated in River West.
Significant store arrivals also took place in popular tourist destinations last summer. Most luxury goods chains sought premises in Mykonos and in Santorini. Moschino opened new stores at the Cavo Tagoo hotel in Mykonos, while Milan-based chain Palm Angels and Denmark’s Alûstre (beauty products) opened stores in Mykonos Town. Kiton opened a new store in the Sani Marina hotel in Halkidiki, while Hublot leased a new space in Santorini.
