MIL OSI Translation. Region: Russian Federation –
Photo by E. Samarin. Press Service of the Mayor and the Moscow Government
Non-residential premises in the Southern, Northern and Eastern administrative districts of the capital were in the greatest demand.
In 2020, investors rented 735 non-residential premises from the city. Most often, entrepreneurs chose places on the ground floors of houses, where they opened shops, consumer services and catering points. The total area of the leased premises is almost 100 thousand square meters.
“There is still a high demand for urban real estate in Moscow. For the second year in a row, the total amount of annual lease payments exceeds one billion rubles. More than 80 percent of the premises in 2020 were rented by representatives of small and medium-sized businesses. These are 614 objects with a total area of 68.5 thousand square meters, ”said Vladimir Efimov, Deputy Mayor of Moscow for Economic Policy and Property and Land Relations.
Most of the premises were leased in the Southern, Northern and Eastern administrative districts of the capital – 97, 95 and 85 objects, respectively.
Entrepreneurs are most often interested in real estate for street retail. These are free-use premises with a separate entrance. They are located on the first floors of residential buildings in busy areas of the city. Here you can open, for example, a shop, cafe or beauty salon.
Since 2017, small and medium-sized businesses have been holding special auctions for the right to lease commercial real estate with fixed preferential starting prices. Initial rates for such auctions are one thousand rubles per square meter per year for basements and 4750 rubles per one square meter per year for areas in the aboveground part of buildings.
If the auction is declared invalid, then the premises can be put up for re-auction at a reduced price – 30 percent lower than the minimum rate of the previous auction.
“The smallest premises rented at a reduced rate by representatives of small and medium-sized businesses is located in the Sokolinaya Gora region. Its area is only 1.8 square meters. The largest premises are located in the Strogino area; its area exceeds one thousand square meters. At a simple auction that did not provide for benefits, the largest commercial space with an area of 1.9 thousand square meters was rented in the Ramenki area. And the smallest, with an area of 13.2 square meters, is in Khamovniki, ”said Maxim Gaman, Minister of the Moscow Government, head of the City Property Department.
Investors in 2019 rented a thousand real estate objects from the city… The volume of signed contracts exceeded 1.5 billion rubles. The greatest demand among entrepreneurs was for premises ranging from 80 to 250 square meters.
EDITOR’S NOTE: This article is a translation. Apologies should the grammar and or sentence structure not be perfect.