Andriy Zhuk: about benefits of retail’s proximity to offices in TEC and multifunctional complexes

“Consolidation of commercial and office components in commercial real estate can considerably enhance both segments’ efficiency. Office tenants will get better service due to their proximity to a commercial component. In their turn, with closeness to offices, retailers will get additional traffic of solvent customers that will increase their sales,” Andriy Zhuk, a partner of Retail & Development Advisor (RDA) and co-founder of Retail Association of Ukraine (RAU), notes. He adds, “if arranged properly, tenant-mix with a shift to needs of offices’ target audiences can contribute in even better performance of a commercial component. In this case, this is also a win-win deal for developers that can count on a minimum of vacancy and increased rental income due to office and commercial components’ synergy. According to Andriy Zhuk, a capital TEC Plaza Polytech that has #RAUAwards2020 as the best small-scaled TEC in the million-plus city is an excellent example of office and commercial components’ synergistic effect.
During a pandemic, the commercial real estate market has changed. Whereas previously a tenant had to choose from a few premises left, now it's just the opposite. “COVID-19 pandemic affected the entire branch of commercial real estate. The latter became vulnerable because of quarantine limits provided by governments worldwide. Many shopping-entertainment centers were closed most of 2020. Moreover, they stand idle until now. Office real estate also suffered because many companies migrated to a remote work schedule by renouncing tenancy completely or in part. Hence, demand for commercial office space decreased, and their vacancy started growing,” Andriy Zhuk explains. Developers recognize that the situation is different now since tenants have greater choices on this market. That’s why this is the best time to rent “the very cherished office.”
Source: rau.ua
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