Catering stores bring new life to empty spaces

The Venetis 1948 bakery chain has invested 3 million euros in a big new outlet in a neoclassical building on Omonia Square in the center of Athens that covers a surface area of 1,200 square meters.

By Nikos Roussanoglou

The store rental market in Athens and Thessaloniki is still suffering despite the considerable drop in leasing rates, which in some cases exceeds 60 percent compared to the period before the financial crisis. However, according to a recent report by chartered surveyors GLP Values, the first positive signs have started to appear, mainly in terms of demand, as commercial activity in certain sectors has begun to improve.

the end of 2013 the average rental rate in the center of Athens, and particularly on Ermou Street, came to 175 euros per square meter, while in other key shopping districts in the capital it dropped below 90 euros/sq.m., with the exception of Glyfada, as on Ioannou Metaxa Street rates exceeded 100 euros/sq.m.

These markets are now presenting a comparatively improved picture as demand for store space – mostly small and medium-sized outlets – has been rekindled. GLP Values points to the proliferation of catering stores in Glyfada, where demand exceeds supply. Similarly, the capital’s secondary shopping areas, particularly in the city center where rental rates have dropped considerably, are seeing strong demand too, while the ongoing merging of banks will free up a number of prime positions.

At shopping malls, the average lease rates for surface areas in excess of 100 sq.m. average 35 to 70 euros/sq.m., while for smaller spaces they range between 65 and 90 euros/sq.m. Obviously the more successful a mall is the higher its rental rates are, but it is clear that a good mix of space usage and size...