Building Retail Parks in Ukraine is Twice as Profitable as Shopping Centers

Retail parks are becoming increasingly popular in Ukraine due to their economic efficiency and reduced risks for investors. As noted by Ukrainian developers, this format of commercial real estate requires lower capital investments, and the return on investment occurs in significantly shorter timeframes compared to traditional shopping and entertainment centers (SEC).

This is reported by AgroReview

Advantages of Retail Parks for Consumers and Retailers

For consumers, especially those living in suburban areas, retail parks offer convenience due to their location within a 15-minute accessibility range. This saves time on shopping. Retailers, in turn, benefit from flexible retail space arrangements, as well as significantly lower rental rates and service fees compared to SECs.

Financial Benefits for Investors

Building retail parks does not require significant expenses on engineering systems or additional security measures. Thanks to their single-story structure and the absence of common areas, such facilities are constructed more easily and quickly. According to analysts, the average payback period for retail parks is 6-7 years, which is nearly twice as fast as for SECs.

“This is a line of stores, meaning connected boxes, entrance groups on the facades, and parking. Here, you spend 2.5 times less on construction than on SECs,” emphasized the director of UTG, Yevgeniya Loktionova.

Another significant advantage is the rental rates: in retail parks, they amount to only $5-7 per square meter, which is considerably more advantageous for businesses.