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CEO of Retail & Development Advisor on Key Trends in the Retail Real Estate Market, International Brands’ Interest in Ukraine, and Promising Shopping Centers Set to Open in the Country’s Regions in 2025
Retail & Development Advisor (RDA) is one of the leading consulting firms in Ukraine’s commercial real estate sector. Despite challenging economic and geopolitical conditions, the company not only maintained stability last year but also achieved significant financial growth. Notably, the active development of new shopping center concepts signals a gradual recovery of Ukraine’s retail real estate market.
In an exclusive interview with RAU, Andrii Lototskyi, CEO of RDA, discussed the company’s key achievements and business challenges, major market trends, negotiations with international brands, and the most promising shopping centers set to open in Ukraine this year.
– What were RDA’s main achievements in 2024?
– Last year was a successful one for our company. It was unprecedented in terms of the number of new shopping center concepts, signaling a steady recovery in the retail real estate market. The primary focus was on small district shopping centers, which are actively developing in western and central Ukraine.
Financially, our company’s results grew by 38% compared to 2023, confirming the effectiveness of our strategy. However, the most significant achievement, in my opinion, is the retention and strengthening of our team, which remains RDA’s key asset.
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– What were the key business metrics? Did they grow compared to 2023?
– Despite the challenges of wartime, economic difficulties, and high market competition, the number of agency agreements at RDA in 2024 remained at the same level as in 2023, which is already a positive sign. At the same time, we significantly increased the number of market research projects and conceptual developments. This indicates that developers and investors are paying more attention to detailed analysis before launching new projects.
– So, you are seeing increased demand for these services?
– Yes, particularly from developers who lack sufficient experience in retail real estate but recognize the importance of professional consulting at all stages of shopping center development—from site selection to final concept implementation.
– What are RDA’s strategic goals for 2025?
– Our top priority in 2025 is the successful launch of our key projects: A7 Mall in Ivano-Frankivsk, Ukraine Mall in Uzhhorod, Retail Park and Rosvyhivsky Mall in Mukachevo, and A1 Mall in Odesa. Each of these projects has a unique concept and is designed to meet modern consumers’ needs for high-quality shopping spaces.
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Additionally, we are actively negotiating with several major international brands interested in entering Ukraine. Our goal is to create the best conditions for new international retailers and strengthen the presence of high-quality retail operators in regional cities.
– Is the company planning to expand or enter new markets?
– We are currently focused on the Ukrainian market, as we see significant growth potential here. In particular, we are paying close attention to western Ukraine, where retail infrastructure is actively developing. The opening of an office in Lviv and the expansion of our team allow us to work more effectively with retailers and developers in the most promising cities.
– Will the company’s main consulting services change?
– Our overall direction remains unchanged—we continue to specialize in comprehensive consulting in retail real estate. However, we are strengthening the most relevant areas, such as concept creation and market research, as they are the foundation for the successful development of any retail property.
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– What are the key trends currently shaping Ukraine’s retail real estate and retail markets?
– One of the most notable trends is the growing demand for retail park and district shopping center concepts with a total area of up to 20,000 square meters. These formats are more adaptable to current realities, provide effective interaction with local consumers, and have high potential for occupancy by quality tenants.
At the same time, residential real estate developers recognize the added value of high-quality infrastructure for future residents, including retail facilities. This benefits customers who can access essential goods and services within walking distance. Meanwhile, large regional shopping malls remain a destination for consumers but with a significantly reduced visit frequency—once or twice a month instead of weekly.
– Are well-known international brands considering entering Ukraine despite the war? Could any of them arrive in 2025?
– Most of the brands we are in talks with are highly interested in entering the Ukrainian market. However, since they operate only through corporate stores (not franchises), they are not ready to open locations in Ukraine during active military operations, even in areas far from conflict zones. Therefore, our current task is to prepare everything for their rapid expansion as soon as peace returns to Ukraine.
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– How is the retail real estate market developing during the war? How are rental rates and vacancy levels changing in shopping centers?
– The market is developing very unevenly. Shopping centers that prioritize customer comfort, support tenants during difficult periods, and actively invest in marketing and infrastructure have consistently long waiting lists and minimal or no vacancies. Market leaders continuously improve their tenant mix, monitor tenant performance, and replace underperforming operators in terms of assortment, concept, marketing, and sales.
On the other hand, shopping centers that neglected infrastructure investments and took a rigid negotiation stance in the past are now facing more difficulties filling retail spaces. Consequently, market leaders are seeing organic rental rate increases, while others, at best, are maintaining current rates.
– What new shopping centers are expected to open in Ukraine in 2025? Which projects have the greatest potential?
– Four shopping centers and four retail parks from our projects are set to open this year, with at least as many planned for next year.
One of the key openings will be Ukraine Mall in Uzhhorod. It will be the region’s first full-fledged super-regional shopping and entertainment center with a parking ratio of 3.1, significantly exceeding the average for similar projects in Ukraine. It will also stand out with a modern supermarket, a cinema, a high-quality tenant mix, and an ideal location, giving it a strong chance for success.
