Russia Topples France as Europe’s Mall Leader

PARIS — Russia has dislodged France as Europe’s largest shopping center market, even as a deep economic crisis prompts many retailers to suspend store openings, according to new research from real estate adviser Cushman & Wakefield. Russia accounted for more than half of all shopping center space added to the market in the second half of 2014, according to Cushman & Wakefield’s latest European Shopping Center Development report. However, much of this space is standing vacant as investors remain cautious about geopolitical tensions between Russia and neighboring Ukraine, which have given rise to European Union trade sanctions. “The Russian retail market has been under unprecedented pressure since March 2014,” said Maxim Karbasnikoff, Cushman & Wakefield’s head of retail services in Russia. “In addition to the Ukrainian crisis and following sanctions, ruble and oil depreciation, especially in the second half of last year, has placed occupiers into a near-panic situation. Unsurprisingly, the exceptional volume of new supply delivered remains partially vacant, with occupiers being more focused on the optimization of the existing network, rather than opening stores without economic visibility,” he added. “Nevertheless, stable retailer sales in Q1 2015, recent ruble appreciation, low vacancy in existing malls and a somewhat more limited pipeline of new projects

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