In our work on the construction of commercial real estate, the most important thing is to understand the goals of the customer. Everything else is a matter of technique and professionalism of our team.
DOMAKS is proud of its highly qualified specialists who can easily cope with any task entrusted to them. We offer you fast and reliable construction of commercial buildings.
To be more specific, we will happily undertake the construction of amazing shopping centers, business centers, hotels, hangars, hotels, parking lots and other industrial buildings created according to unique projects. The services provided by DOMAKS are the most ideal for you, as customers, because we care about your interests, putting them above all !!! Absolutely unique developments that can be erected by our workers in the shortest possible time and at the same time very high quality, will undoubtedly become your property!
You will hardly find analogs to the projects built by DOMAKS specialists on sites like ours, because we use the most modern technologies and the best building materials for the construction of commercial real estate in St. Petersburg, Moscow, as well as in many other cities of Russia. Nothing is impossible for our clients! Do you need an excellent construction company of the best specialists to bring to life the desired project of the hotel complex? Do you want to implement a car parking or gas station project at the lowest possible price? With us, the construction of such complexes is more than realistic and rational !!!
Guarantees for the construction of commercial real estate
We guarantee that by contacting DOMAKS you will be put into the hands of experienced professionals in the construction industry! Over the years we have managed to achieve unprecedented results and now we are happy to offer our clients the best conditions for the execution of the transaction. Do not hesitate, the decision to contact the best DOMAKS specialists will insure you against many production problems and incidents, as well as unforeseen material costs. Competent recommendations and advice of our qualified specialists will help you easily navigate and make the right choice in favor of the most suitable building materials, as well as finishing materials and finishing elements. Moreover, please note that our prices are even more than affordable.
Quality of work
You can learn about the quality of our work and the excellently fulfilled conditions of the contract firsthand. We do not hide our achievements and are not afraid to declare that our company is one of the best in St. Petersburg for the construction of buildings intended directly for commercial purposes. You can also look at the reviews of our clients posted on the DOMAKS website and make sure that our words are correct !!!
Prices
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PURPOSE OF THE BUILDING |
Building area, sq.m. (Price in RUB / m2) |
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up to 5,000 |
5 000 - 10 000 |
10 000 - 20 000 |
20 000 - 40 000 |
from 40,000 |
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Multi-storey residential building |
1200 |
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Warehouse |
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Office |
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Shopping center |
1100 |
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Open multilevel parking |
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Buildings up to 1000 m2 - 1.5-2 million rubles
Commercial real estate construction cost
Depending on the area, conditions, parameters, internal engineering systems, requirements for finishing, the cost of construction (building box, internal engineering, finishing) will be approximately:
Office real estate (business centers) - price: 20-28 thousand rubles / m2
Warehouse property
Cold warehouse: 8-12 thousand rubles / m2
Industrial refrigerator: 15-22 thousand rubles / m2
Shopping centers - price: 24-36 thousand rubles / m2
Open multi-level parking lots - price: 8-12 thousand rubles / m2
Multifunctional buildings up to 1000 m2 - price: 20- 35 thousand rubles / m2
- Performing the Functions of the General Contractor - 5-7% of the cost of construction and installation works
- Performance of the Functions of a Technical Customer - 1-2% of the cost of construction and installation work
On the Yuda website, you can order professional services for the preparation of estimate documentation. YouDo contractors have specialized education and rich work experience, which makes it possible to guarantee the literacy of the estimate, as well as compliance with all the norms and requirements of the current legislation in the calculations.
Why do you need estimate documentation?
The construction of any building, including a trading house, is a complex process that takes a lot of time and requires huge costs from the future owner. And so that these costs do not go beyond the budget allocated for these purposes, it is necessary to order the calculation of the estimate for the construction of a shopping center before starting construction. Estimate documentation, taking into account the fact that it is compiled professionally, is very important, as it allows:
- Monitor the compliance of the planned activities with the works carried out after the fact
- Control construction costs
- Avoid contract fraud
In addition, the estimate of the shopping center will provide an opportunity to see the full "picture" of the upcoming costs and their feasibility.
Types of estimate documentation
- A labor-intensive estimate for the construction of a shopping center. This method is used for small volumes of construction work. It is understood that the customer pays only for the services of the construction organization, and delivers the building materials to the object on his own
- Universal construction estimate. It is a document that indicates not only the types of work, but also all the materials used. The cost of materials in aggregate is indicated in the annex to the estimate documentation
- Expanded estimate. Only specialists who have experience in preparing calculations for just such documentation will be able to calculate the estimate for a shopping complex of this type. Here, specialists draw up estimate documentation only in accordance with up-to-date information on prices for building materials and prices for work performed
Where and how to order the preparation of budget documentation inexpensively?
You can order the services of professionals to draw up an estimate for the construction of a shopping complex on the Yuda website. Here the services are provided by specialists whose skill level has been confirmed by a preliminary check.
To place an order for Yuda, you must:
- Fill out an application on the main page of the site
- Specify the type of work in the application, additional requirements, lead time and desired cost
- Wait a few minutes for the contractors who will be able to correctly calculate all construction costs respond to the application
- Choose a specialist whose work meets the requirements as much as possible
Yudu contractors will be able to calculate the construction cost estimate in full compliance with the established norms and standards. The estimate documentation compiled by specialists of this level will allow in the future to exercise full control over the construction process.
Drawing up estimates for construction work is mandatory, since almost every project has a budget that needs to be approved. In the article we will talk about the basic principles of developing construction estimates and how the Business.Ru service will help in drawing up an estimate.
What you will learn about:
Basic principles of budgeting
Any estimate is made in order to have a plan for the implementation of a specific project, but also solves other problems. For example, budgeting for construction and other repair work is needed to:
- separate money needed for various materials, procedures and works;
- understand and tell the customer how much the construction will cost;
- manage cash flows evenly and correctly, in accordance with the time and requirements;
- check the financial viability of a specific design.
Estimated calculation during construction shows the cost of materials and work that are necessary for each of the processes separately.
Traditionally, the estimate is an attachment to the contract for the provision of construction services.
The budgeting functionality is one of the novelties of the Business.Ru service. This is useful for entrepreneurs and users of the system who are professionally involved in construction or finishing work. Also, the possibility of drawing up construction estimates will simplify communication with contractors for store owners who delve into the process of repairing their facilities.
The principles of budgeting are spelled out in a special guide "Methodology for determining the cost of construction products in the Russian Federation" MDS 81-35-2004.
According to him, there are several types of estimates. Basically, the document determines the estimates when working with government orders and official bodies.
Types of construction estimates
MDS 81-35-2004 identifies the following types of construction estimates:
- local estimates (primary documents for the construction of large facilities and structures: buildings, roads, etc. at the basic price level and with a forecast);
- object estimates (documents with figures from local estimatescompiled with the prices of the current year);
- summary estimates (created on the basis of previous documents, as well as on the basis of the estimated costs of the functioning of the administrative apparatus). They determine the final limit of funds that will be required for the construction of facilities.
Important!Methodological recommendations are necessary for professional estimators for large government orders or construction firms. When drawing up such estimates, they usually use reference books with prices for 2000, and then change them using a coefficient.
If we are talking about small companies when working with private companies or individuals, then a simpler version of the estimate is drawn up. The type of such a document differs in the areas of construction: a general estimate for construction work, as well as an estimate for finishing, electrical installation, design, plumbing, roofing, installation and other types of work.
An estimate for construction work is necessary if a global project is to be undertaken: from the construction of a new building to the addition of a new building.
The sample estimate for construction work differs from other estimates in a large number of positions. For example, it may contain not only a list of installation, but also dismantling works.
A sample estimate for construction work looks like this:
A sample estimate for construction work can be compiled independently in an Excel spreadsheet, or you can use special services for making estimates. For example, this functionality is available in the "Business.Ru" cloud accounting system.
Based on the results of work in the service, the finished estimate is also uploaded to Excel, where it can be further corrected.
Electrical work is the whole range of repair work related to electrical wiring. These include complete and partial replacement of electrical wiring, electrical wiring in a new building, and even the installation of an electrical panel, sockets and lamps.
The peculiarity of such a document is that the basis of the estimate is a list of works with a cost. You can make an estimate for electrical work using the Business.Ru service.
An example of an estimate for electrical work:
After the contract between the contractor and the customer, a store with an electrician is selected, where the purchase will be made (or the purchase of equipment is carried out by the client himself through the online store).
Design work is the first stage in the construction of a building. When designing a structure, the estimate takes into account the remuneration of specialists. Usually an estimate for design work compiled according to special reference books, where wages and coefficients are calculated. Such a document has a small number of columns.
An example of an estimate for design work:
The estimate for repair work can be very diverse. It includes sections related to finishing or minor repairs.
An example of an estimate for repair work to level the walls in a room where radiators have already been installed:
Plumbing work is a group of work related to the installation and replacement of water and sewer pipes, as well as the installation and dismantling of washbasins, toilets, taps, radiators, etc.
Small private companies and individual entrepreneurs make an estimate for plumbing work without taking into account the methodological recommendations for wages.
A sample estimate for plumbing work is presented below:
As in the case with the general estimate for construction work, the estimate for roofing work usually contains not only installation, but also dismantling work.
The picture shows a sample estimate for roofing work in an office building:
Welding work with a separate estimate is usually drawn up only by professional estimators in large construction companies taking into account the methodological recommendations.
However, if minor welding works are performed, then the estimate for welding works can be performed in simpler programs for preparing documents. For example, in the cloud service "Business.Ru".
A sample fragment of the estimate for welding works:
If work is carried out with excavation or, conversely, filling it (in holes), such work is called earthen work.
The estimate for earthwork usually includes the cost of the work itself (remuneration of workers and foreman), as well as consumables: shovels, bags, etc.
This is how a fragment of a sample estimate for earthworks looks like, made according to methodological recommendations:
Dismantling work is a set of works associated with the destruction of a building or part of it (for example, walls, windows, doors, etc.).
Usually in such a document, in addition to the cost of dismantling works, the payment for the removal of garbage from the floor, collection and removal of garbage to the landfill is indicated.
Sample estimate for dismantling works:
Installation work is a set of works related to the installation of something. The estimate for installation work includes the calculation of the price of equipment, as well as the cost of its installation.
In the program "Business.Ru" you can create a similar estimate that will help you sell a set of goods for the installation of technically complex products. For example, when implementing "smart home" systems or an electronic barrier.
By the way, a sample estimate for the installation work of the barrier, which the store could print for the client, is presented below:
Commissioning works - a set of works after equipment installation: checking and adjusting all processes. Usually, the estimate for commissioning is made in large construction companies, while taking into account the codes and positions of the standards specified in special reference books.
Sample estimate for commissioning:
Finishing work is the final stage of the renovation. For example, wallpapering, laminating, installing doors, etc.
A sample estimate for finishing work for one of the office rooms is presented below. It includes ceiling, wall and floor finishes.
Cost estimate for work and materials
An estimate for work and materials is a simplified type of estimate that is used for small repairs. For example, if your store just needs to paint the walls, a sample quote for work and materials will only contain the cost of paint and paintwork.
Survey work estimate
Prospecting work is a list of works required to investigate a construction site. The survey estimates include both economic and technical work.
Economic calculations include studies that substantiate the benefits of building a building in this particular place. Technical is a complex of cases in the field of geology, geodesy, which are also carried out before construction.
The sample estimate for survey work mainly includes the cost of salaries, as well as the delivery of specialists to the site of the proposed construction (gasoline, car rental, etc.).
The concept of the estimated cost in construction
Determination of the estimated cost is used not only by estimates, but also by all foremen, who make estimates without taking into account the standards. In the most general terms, the estimated cost is the amount of money intended for construction. It is the total amount used by the contractor and customer to determine the amount of funding.
When deriving the estimated cost, the prices for construction goods, the cost of equipment (rent, purchase), removal and delivery, the cost of wages to workers and their leader are taken.
The estimated cost is determined by direct and overhead costs, as well as the estimated profit of the organization.
Direct costs include the cost of materials, the operation of machines and mechanisms, and the remuneration of employees.
Overhead costs in construction estimates are indirect cash costs associated with the organization of work. These include, for example, the remuneration of the administrative staff, payment for the use of programs for drawing up estimates and other documentation, the use of mobile communications, the rental of administrative premises, etc.
Estimated profit is money to cover the costs of contractors and incentivize workers (for example, overtime premiums).
Top 5 budgeting mistakes
When drawing up construction estimates, errors occur periodically. Here are the top 5 most common mistakes.
- Lack of an estimate in principle... The customer meets with the foreman and finds out the prices for the work in words. The contractor was recommended by an acquaintance, so the future client does not doubt his honesty and simply inquires about the prices to estimate the costs.
As a result, the amount of expenses for construction or repairs exceeds all permissible limits. After all, if there is no specific agreement on materials, the contractor will buy the amount of building materials that exceeds the required volume.
- There is no scope of work.The construction estimate may simply indicate the amount of costs for a particular action (for example, repair of a utility room), but the scope of work does not appear.
As a result, it turns out that the contractor, when drawing up the estimate, indicated only the main work on this object, and forgot the additional, smaller ones (on purpose or by accident - it does not matter in this case). The client has to pay extra.
For example, in a store, ceiling alignment is done. The contractor decided to use mesh and minimal plaster. But in the course of removing the old coating, very large joints between the plates are found, which requires 5 times more plaster consumption. Repair costs for the client are increasing.
- Additional work in the estimate... This error can be accidental or ad hoc. Sometimes non-professional builders do not know about a simpler technology and assume a more complex set of works. Additional work in the estimate may appear on purpose in order to increase the cost of wages.
- Excess amount of materials in the estimate. Overestimating the amount of materials by more than 15% of the required is not the contractor's insurance, but a mistake. After all, in order to make a good construction estimate, for example, for repairing a store, it is necessary to measure all walls, windows, doorways to clarify the unevenness of surfaces, etc. However, rarely does a contractor approach the calculations so thoroughly.
- Indication of not all works in the estimate.An unscrupulous contractor can devote the bulk of the estimate to preparatory work. The customer, without fully considering the estimate, but only seeing the total amount, sees that the price suits him, signs the contract.
As a result, the contractor does the rough work and disappears. The customer, having carefully looked at the estimate, sees that he really paid only for the preparatory part. As a result, such a "mistake" in the construction estimate leads to overpayment.
The project is the construction of an object (presumably a shopping and entertainment center). The object is located in the city of Mytischi, Moscow region at the address: st. Letnaya, 26. The approximate commissioning date of the facility is 2019.
Object coverage areas
When developing a concept for the construction of a business center, it is necessary to determine the boundaries of the service area surrounding the site.
Conventionally, the territory around the object can be divided into three zones (depending on the proximity of the location):
- 1st encirclement ring: limited by Yubileynaya and Mira streets, by the Yauza river.
- 2nd encirclement ring: covers most of the city, with the exception of remote areas - Stroitel, Chelyuskinskaya, Stroyplastmass district, Vostochnaya Perlovka and Druzhba.
- 3rd encirclement ring: covers the entire city of Mytishchi, including the Stroitel, Chelyuskinskaya, Stroyplastmass, Vostochnaya Perlovka and Druzhba districts.
Internal and external factors of project success
External factors are beyond the control of the investor, but their influence on the subsequent development of the project is of fundamental importance in the implementation of the project for the construction of a business center.
A comparison of external and internal development factors is presented in the table below.
Based on the analysis carried out, we can come to the conclusion that, when deciding on the construction of a business center, several parameters must be taken into account:
- Prospects for the economic, social and demographic development of the region.
- The level of competition in the area where the object is located.
- Socio-demographic characteristics of the population living in the area.
- Features of the object itself.
- Investment indicators of the project.
It should be noted that the cost of building business centers in St. Petersburg is on average 450 million rubles for an area of \u200b\u200b40,000 sq. m. However, this indicator differs slightly from that in Moscow.
It should be noted that the cost of building business centers in Moscow is about 600 million rubles for a square of more than 40,000 square meters. m.
Object SWOT analysis
Below is the summary table of the SWOT analysis of the object proposed for construction.
| S - Strengths | W - Weaknesses |
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| O - Opportunities | T - Threats |
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Having analyzed the strengths and weaknesses of the facility, its development and threats, we can consider the possibility of implementing two different options for the use of areas:
- Shopping center.
- Shopping and entertainment center.
Shopping center
In this case, you can focus on a shopping gallery. The large size of the shopping area will increase the variety of products on offer. Rental rates for retail space are significantly higher than for entertainment space. In this case, the coverage area of \u200b\u200bthe shopping center will be only the first ring of the environment.
This business plan for the construction of a business center is the most optimal for the construction of a two-story facility.
Shopping and entertainment center
In the second case, you can focus on the entertainment component. The main advantage of this proposal is the fact that there is an acute shortage of leisure facilities for children on the city market. The presence of an entertainment zone increases the time spent by buyers on the site. In new malls, the ratio of retail and entertainment space is 50% to 50%.
It is proposed to place a grocery supermarket on the ground floor.
If there is a large number of entertainment operators, the shopping mall will be able to attract visitors to the first and partly the second ring of the city's surroundings, since there are not enough entertainment facilities in the city. It should be borne in mind that rental rates for this type of service are lower than for retail space, which will ultimately lead to an increase in the payback period of the project.
Foreign experience suggests that the most optimal implementation of the project will be the creation of a shopping and entertainment complex, since this option reduces commercial risks.
The planned business center belongs to class A. It is the highest among those that can be assigned. The class A rating indicates the prestige of all premises of the building, the presence of modern life support systems and the work of the center itself.
The cost of building a class A business center for a specific example is presented below. We must not forget that the construction of a shopping and entertainment center in another city may have completely different financial investments in terms of volume.
Drawing up project cash flows
Presumably, the mall will have the following parameters when obtaining a building permit:
- The total area of \u200b\u200bthe shopping center is 9672 sq. m.
- Including the 1st floor - 4847 sq. m.
- Including the 2nd floor - 4825 sq. m.
- Occupancy rate in the 1st year - 70%.
- The occupancy rate in the following years is 95%.
- Non-payment risk - 0%.
- Annual income growth - 5%.
Since the lease agreement establishes the amount of a fine for overdue over 30 days, the risks of non-payment during the construction of a business center are equated to zero. The annual increase in rental prices will be 5%.
This is more clearly shown in the table below.
Investments in the construction of a business center (RUB)
| Direction | Investments | ||||
| 1. Costs | Construction and installation works | ||||
| other expenses | |||||
| Partial summary: | |||||
| 2. Connections | Water supply | ||||
| Sewerage | |||||
| Heat supply | |||||
| Power supply | |||||
| For allocating a limit on electricity | |||||
| Partial summary: | |||||
The most important point is the study of the issues of financing capital investments. For this purpose, both own and borrowed funds of the company can be used. Below is the data on financing the construction project in more detail.
Project financing:
- Total investments - $ 13,439,642
- Including the 1st year - 10,939,642 USD
- Including 2nd year - $ 2,500,000
- Total borrowed capital - $ 13,439,642, including 1st year: $ 10,939,642, 2nd year: $ 2,500,000.
- The loan repayment period is 10 years.
- The interest rate on the loan is 18%.
In the process of researching the financial results of the project, an important point is the study of the amount and amount of the tax burden in the company according to the data of the business plan.
The results of the planned tax deductions for the project are presented below.
Taxes paid during the operation of the project:
- Property - 2.2%.
- Profit - 20%.
- VAT - 18%.
To build a cash flow, we need to determine the approximate amount of proceeds from the lease of premises, for which we need to zoning the area of \u200b\u200bthe shopping and entertainment center. Zoning elements are presented in the table below.
Zoning
The calculation of income from renting out premises for the planned business center is a central issue, as it is associated with its efficiency. There are various forecast options for obtaining such income: optimistic, average and pessimistic. The table below shows the characteristics of each option more clearly.
The first table presents a pessimistic forecast for the option of earning an income.
Calculations of rental income. Rental rates - pessimistic forecast
These tables allow us to conclude that as a result of the implementation of the project, the pessimistic amount of income received from the lease of space in the shopping and entertainment center will amount to $ 3909468.
The table below shows the data on the calculation of income from the lease of shopping center space in the averaged version.
Calculations of rental income. Rental rates - average
These tables allow us to conclude that as a result of the implementation of the project, the average amount of income received from the lease of space in the shopping and entertainment center will be $ 4,429,399.
It is also necessary to predict an optimistic forecast for the possible receipt of income for the object from the lease of premises, which is presented in the table below.
Calculations of rental income. Rental rates - optimistic forecast
These tables allow us to conclude that as a result of the implementation of the project, the optimistic amount of income received from the lease of space in the shopping and entertainment center will be $ 4,776,385.
Let's calculate the cost of borrowed funds and their repayment schedule in the table below.
| Balance to maturity | % of the current payment | Principal amount from current payments | Monthly payment |
|
Note: In the 3rd month, the monthly payment will include a two-year grace period and an interest capitalization of $ 5,143,445.
The data in the table shows that the monthly payment for the project will be $ 3,214,579 per month.
other expenses
We will consider and calculate all kinds of operating costs during the construction of a business center:
- For the first two years, the work of the guards will cover half of the permanent volume.
- The calculation of cleaning services includes cleaning of all areas and territories.
- The payment of wages in full is taken into account, taking into account all taxes and VAT.
- Annual salary increase of 5% per year.
- All operating expenses are transferred to tenants (except Year 1 and half of Year 2 expenses).
To compile the cash flow, we calculated the following data:
- Estimated average rental income for 10 years of project implementation, provided that in the first year the leased area is 70%, and in the following years - 95%.
- The property will be depreciated at 3.33% per annum.
Calculations in the framework of financing activities include an excess of interest under tax laws, since the format before and after financing will not be compiled.
Since construction is accepted “by stages of work”, and the cash flow is formed starting from the first year, which is counted from the moment when the project generates the first ruble of income, the company loses the right to VAT refunds in the first year upon completion of construction.
Since the project balance is a positive value when the facility reaches 100% capacity, other and extraordinary expenses were not taken into account in the calculations.
Based on the available data, it seems possible to display the planned cash flows generated by the project.
The table below shows the operating costs of the project.
Operating expenses
| Operating expenses | ||||||||||
| Administration | ||||||||||
| staff | ||||||||||
| consumables | ||||||||||
| equipment | ||||||||||
| staff | ||||||||||
| consumables | ||||||||||
| equipment | ||||||||||
| Those. service | ||||||||||
| staff | ||||||||||
| consumables, including overalls | ||||||||||
| licenses | ||||||||||
| staff | ||||||||||
| consumables, including workwear and equipment | ||||||||||
| Insurance | ||||||||||
| responsibility | ||||||||||
| Weighted average consumption per sq. m / year | ||||||||||
| Total per year | ||||||||||
| Operating expenses covered by the owner |
The table shows that the amount of operating expenses in the first year will amount to $ 271,707, then it increases from year to year and in the 10th year reaches the amount of $ 740,157.
In the subsequent analysis of the project efficiency, the dynamics of project revenues during the first 10 years will be considered in the table below.
Project income
These tables allow us to conclude that the amount of income for the project in the first year will amount to $ 2,717,987, then the income will increase, by the 10th year they will amount to $ 39,702,947.
When researching a project, the calculation of depreciation deductions is important, which is presented in the table below.
Depreciation by project
As can be seen from the table, the amount of depreciation deductions in the third year will be $ 262,153, and in the last, 10th year - $ 227,582. The total amount of depreciation deductions for all years of the project will be $ 1956 147.
The table below shows the cash flow for the project.
Cash flow
| CASH FLOW | |||||||||||
| Primary activity | |||||||||||
| Gross income | |||||||||||
| Operating costs | |||||||||||
| VAT payable | |||||||||||
| Operating activities | |||||||||||
| 11% CT - decrease in NB | |||||||||||
| Property tax | |||||||||||
| Income tax | |||||||||||
| TOTAL by main activity | |||||||||||
| Financial activities | |||||||||||
| 7% above the standard | |||||||||||
| Loan body | |||||||||||
| Payment to founders | |||||||||||
| TOTAL for financial activities | |||||||||||
| Investment activities | |||||||||||
| VAT refund | |||||||||||
| TOTAL for investment activities | |||||||||||
| TOTAL overall |
It can be seen from the table that the total cash flow for the project will be $ 1,300,415.
Estimating the discount rate
It is used to translate future streams of income into a single current value. The discount rate (r) will be calculated cumulatively using the formula:
α is the average inflation rate for the period.
MRR (Minimum Risk of Return) - the minimum real rate of risk associated with the operation of the project.
RI (Investment Risk) - the level of the average required return (risk) by the project participants.
The minimum real rate of risk MRR for this case will be equal to the cost of borrowed funds, namely 18%, that is, the rate on a bank loan.
In accordance with the investment agreement, the average required rate of return RI by the project participants is set at 2%.
Thus, the discount rate will be:
r \u003d (0.13 + 0.18 * 1.02) * 100% \u003d 30%
conclusions
When drawing up a business plan for the construction of a business center, the project was considered, optimistic conclusions were made.
In the next three years, a moderate economic growth will be observed in the Mytishchi region, however, the average indicators for the region are lagging behind the average for the Moscow region. Mechanical engineering, instrument making, and the construction industry will remain the leading industries.
By the end of 2018, it is planned to increase the growth rate of retail trade turnover by 40% and an increase in the annual volume of consumer services for the population by 35%. The growth in trade will be ensured by the growth of the middle class and its income.
Space that meets international standards is an acute shortage, the demand for high-quality retail space exceeds supply. This will lead to an increase in the quality of creation and management of the shopping and entertainment center
Clothing stores are the main sources of demand today. They account for about 50% of the area in shopping centers. The vacancy rate in 2018 will be 10-15%. The expected increase in the volume of retail real estate will be about 75,000 sq. M. m. Currently, the average rental rate for retail space in the city is about $ 405 / sq. m per year (including VAT and operating expenses).
The first encirclement area contains a large number of properties that compete in both the food and industrial sectors.
When calculating cash flows, the average rental rate, the availability of free premises at 5%, as well as all operating costs and payments on the loan were taken into account. The cash flow for the project turned out to be positive, but still not large enough.
The discount rate, which includes the average inflation rate, the risk generated by the project, and the average required return, was 30%.
Thus, the presented project can be accepted for consideration, since the calculations show its profitability and efficiency.
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