Retail chains secure better rent deals

A number of important leasing deals for commercial properties were sealed during the second quarter of the year despite the pandemic and the lockdown imposed.

Although property owners were besieged with demands for rent reductions, even from the giants of retail commerce in Greece, leasing activity data from the last few months constitutes clear evidence that, even at the height of the crisis for retail, popular store spaces in key shopping areas in Attica continued to see major demand.

Among the big leasing deals completed in the April-June period was that by IKEA for a 1,800-square meter store in the center of Piraeus. Folli Follie leased a 60 sq.m. space in Kifissia, where Anna Riska also leased a 95 sq.m. store. The Anna Maria Mazaraki jewelry chain leased a 365 sq.m. space in Kolonaki.

At the same time, sports apparel chain Sneaker10 leased a 325 sq.m. store on Tsimiski Street in Thessaloniki. That was its second move this year, as earlier in 2020 it started leasing a 165 sq.m. shop in Piraeus.

One of the most important moves this year in the commercial rentals market was the leasing of a 2,600 sq.m. space on Ermou Street in central Athens by Intersport, which belongs to the Athens-listed Fourlis Group. Prenatal/Toys Center opened a new 2,000 sq.m. shop in Alimos.

The prize for the largest space captured goes to Leroy Merlin, which opened a 10,000 sq.m. outlet on Kifissos Avenue. This constitutes the first phase of development of the property Hines Real Estate acquired from Artume, a company belonging to the BlackRock investment group.

There have also been moves in shopping centers, with the Pink Woman chain opening a 290 sq.m. store at Smart Park in Spata and North Face inaugurating a 120 sq.m. shop at The Mall Athens.

The decline in demand compared to the period before the pandemic offers chains a negotiating asset as regards the level of rents, leading to them securing more deals in recent months.

Market sources say an increasing number of companies are seeking better terms in their leasing deals.