RD Management’s Deputy General Director for Strategic Development Darrell Stanaford spoke with the magazine CRE Retail about the situation on the market for retail center management.
The share of third party management companies in the retail center segment remains low. According to Darrell Stanaford, only 10% of the major malls in Moscow outsource property management while approximately 60% outsource facility management.
“The market’s development is being hindered by the lack of competition among shopping centers and the lack of pressure on the part of tenants,” says Mr. Stanaford. “Now retailers, as they feel the impact of lower sales, are going to be putting pressure on developers.”
Some of the main trends in the markets development according to experts are the expansion of the market through the appearance of new retail centers, growth in competition among management companies, and the entry of professional management companies on the markets of mid-sized regional cities, CRE Retail reports.
As reported earlier, RD Management (part of RD Group) in March 2014 took over the operational management of the luxury class shopping center Vremena Goda, which is situated on Kutuzovsky Prospekt.
According to the management agreement’s provisions, the company will provide the full spectrum of facility services: technical maintenance of engineering systems, comprehensive cleaning services and security management. The complex has a total area of 64,500 square meters. This is the second luxury-class shopping center in the portfolio of RD Management: since 2011 the company has managed the Dream House retail gallery.