Fifth Annual Retail Lease Conference
18 October, Moscow, 5th Annual Retail Lease Conference (KomAr-2013) – Olga Gavrilova, Deputy Account Director at MD Facility Management, appeared with a report at a special session dedicated to retail premises, namely Shopping Centers Development Concept for Small and Medium-Sized Cities and Their Integration in Local Infrastructure.
The major issue brought up at the session was the opportunity to reduce shopping center investment costs in tows with low population and income levels. In her speech Olga Gavrilova emphasized the fact that greenfield investment in small towns is a high risk and expensive venture. Therefore investors tend to acquire completed construction projects for their further redevelopment. However, this seemingly reasoned approach entails some difficulties.
“For instance, a developer inherits a shabby infrastructure and worn out supply systems. The renovation will take much time and costs. What is important is to optimize the operational costs at the stage of redevelopment. Eventually this will help increase the asset value,” says O. Gavrilova.