Latio: Large demand for small retail premises
29 April 2010
Riga
During the first three months of this year, in Riga the demand has been greatest for small retail premises, shows the Latio commercial property market report on the first quarter of 2010.
Activity in the segment of small premises in the center of Riga is very high, mainly generated by bakeries, cafes, restaurants and other catering businesses, as well as small stores. The information gathered by Latio shows that, in 2009, 35% of tenants required retail premises sized 51 to 100 square meters, while 20% required 101 to 150 square meters. 16% of companies wished to lease premises with a size of up to 50 square meters.
“There are currently no new, serious retailers in the market that would like to lease large areas in the center of Riga. Although the lease price is low, good retail premises with a size of 500 square meters can remain empty for several months. Companies not working in catering or retailing of food products mostly wish to lease space in malls. After the opening of the new mall Galleria Riga in September, some tenants may move there, thus freeing up space elsewhere in the center of Riga,” explains Jānis Šīns, head of the Latio commercial property sale department.
The lease price of small retail premises in good locations in the center of Riga can reach 25–35 euros per square meter per month. The average price for retail space in Old Riga is 20–25 euros per square meter per month, while in the most active shopping streets the price of small retail premises can reach 40 euros per month. The offer in Old Riga is limited, however, as most premises have already been leased out. Farther from Old Riga, for example, in Ģertrūdes Street, the average monthly lease price for retail space is 10–15 euros per square meter.
“The lease prices of retail space have bottomed. With the coming of spring, the owners of the premises are optimistic about improvement of the situation, and thus include clauses in their agreements regarding increasing of the lease price in the coming years,” explains Jānis Šīns.
