The largest landlords of commercial property in Russia sustained drastic income shortfalls last year, according to Forbes estimate.
According to the Forbes ranking, their revenues fell by almost a quarter (by 24%, to be exact), or by as much as $1.9 billion — to $5.8 billion from $7.7 billion in 2019.
The reason for the downward trend is clear — shopping centers in Russia have remained closed for several months; hotels stood idle, and business centers also had a tough time when companies had to send their employees home to work remotely.
In this segment, hardest hit were the landlords relying on class B+ and B- tenants that usually lease small office premises for short periods.
As for the year 2021, expectations vary greatly across the expert community. On the one hand, the economy is gradually starting to recover, and there is a chance consumer demand will pick up soon. That should boost the occupancy rate at service, entertainment and catering spaces. Workers are gradually returning to their offices.
On the other hand, many employers, especially businesses that use office spaces, seem to have appreciated the cost-cutting effect of telework during the pandemic. They are in no hurry to bring everyone back to the office and instead consider letting at least some of their employees continue working from home.