Reitarska Holds Its Ground, Besarabka Loses Ground: How Kyiv’s Street Retail Has Changed
14 August 11:04
The capital’s street retail sector has lost its pre-war rates, but falling prices do not guarantee business success. The decisive factors have been foot traffic, a dedicated customer base, shelter, backup power, and the atmosphere of the location. Yevgeniya Loktionova, director of UTG, shared these insights in a comment to the Interfax-Ukraine news agency, according to "Komersant Ukrainian"
Rents for street-front commercial spaces in central Kyiv have fallen by 30–50% in dollar terms compared to the end of 2021.
At the same time, the success of a retail outlet now depends not so much on the prestige of the address as on actual foot traffic, safety, and the ability to operate during power outages.
Street retail is a commercial real estate format in which stores, cafes, pharmacies, or salons are located on the ground floors of buildings and have a separate entrance and storefront directly facing the street.
This is a key part of urban infrastructure, as such properties rely on direct foot traffic.
How much does it cost to rent a store in downtown Kyiv?
Before the full-scale war began, rental rates in the capital’s most attractive retail corridors could reach around $70 per square meter per month.
Currently, actual negotiated rates for prime street-front properties in central Kyiv generally range from $15 to $30 per square meter.
“Currently, actual negotiated rates for liquid street-front retail spaces in the city center range from $15 to $30 per square meter (depending on the main thoroughfare, foot traffic, and the availability of a generator or shelter). Non-prime properties are forced to offer even deeper discounts,” Loktionova said.
The final cost depends on several factors:
- location and intensity of foot traffic;
- visibility of the facade from the street;
- the presence of a separate entrance;
- proximity to the metro and public transit stops;
- the possibility of installing a generator;
- availability of a shelter nearby;
- the technical condition of the premises;
- the type of business that will operate at the location.
Illiquid properties that are located far from high foot traffic or require significant investment in repairs are forced to offer even deeper discounts.
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Why a Drop in Rent Doesn’t Mean a Good Deal
A low rent rate alone does not guarantee that a store, café, or salon will be able to operate successfully. Savings on rent can be offset by expenses for a generator, repairs, security, advertising, and attracting customers.
The street retail market is influenced by:
- a decline in consumer purchasing power;
- air raid alerts and security risks;
- curfews;
- restrictions on nighttime operations of restaurants and bars;
- power outages;
- a decline in tourist traffic;
- investors’ reluctance to invest in high-risk properties.
Therefore, owners may list a high asking price in their ads but agree to a significant discount during actual negotiations.
According to UTG, in the Shevchenkivskyi and Pechersk districts, discounts on commercial real estate sales can average up to 30% of the 2021 value.
Asking prices for street-front properties have generally fallen by 25–40%. At the same time, there have been few full-fledged investment deals in the market due to a shortage of buyers willing to pay with their own funds and assume the risks of owning the property.
Reitarska and Arsenalna Streets Remain Popular
Despite the overall decline in rates, certain locations in the capital continue to attract visitors. Experts cite Reitarska Street and the A-Station space near the “Arsenalska” metro station as examples.
Reitarska has built its own audience thanks to a mix of small coffee shops, gastronomic projects, showrooms for Ukrainian brands, and a comfortable pedestrian environment.
People come here not just for a specific product. The street has become a place for meetings and relaxation, creating a steady stream of potential customers for local businesses.
A-Station near Arsenalna demonstrates a different model. A unified concept, controlled management of the area, a food court, a clean pedestrian space, and proximity to the metro help maintain steady foot traffic.
UTG cited the Bessarabsky Market as a contrasting example. The problem stems from the mismatch between the market’s traditional function and the modern expectations of visitors.
“Prices have become inflated, and the product range is geared primarily toward casual tourists rather than local residents. Among the obvious shortcomings are the lack of flexible leisure options and high-quality, modern public spaces in the surrounding area,” explains Loktionova.
According to the UTG director, success lies not in major retail corridors but in cozy neighborhoods near residential areas. Flexible formats and locations that offer open space, accessibility, and places to sit outdoors also have an advantage.
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