The lack of suitable houses slows down business in the regions

Finding suitable premises outside of Riga is a big challenge for businessmen, in some cities suitable areas for business development are not available at all. This problem can be solved in two ways – by adapting the concepts according to the situation in the regions or by attracting a developer or builder who will build the premises according to the interests of the tenant or the end user – this is what Vineta Vigupe, director of CBRE Baltics Investment Department, says to Dienas Biznesa special issue Real Estate, adding that the second scenario will cost much more. It should also be taken into account that it will require not only large initial investments, but also a long-term relationship with the owner of the premises, notes V. Vigupe. Regions are interesting The possibilities of finding suitable premises in the regions are very dependent on the brand concept of the specific trade chain, V. Vigupe thinks. “How the concept is applied to the specific region plays a big role. If a marketer is willing to adapt, opportunities can always be found, especially when decision-making is flexible. It is different in the framework of large groups, when the concept is the same in all cities, regardless of the region, because it can cause complications both in terms of areas and necessary investments. It must be said that, in general, regions are interesting for retailers, however, in order to develop in this direction, a very well-developed strategy must be in place, as well as carefully adapted smaller concepts and assortment,” notes V. Vigupe.

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