Saturday October 25, 2014 Search
Weather | Athens
19o C
12o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Nike gets major discount on renting prime Athens space

By Sharon Smyth & Eleni Chrepa

Nike Inc., the world’s largest sporting-goods company, agreed to rent prime retail space in the center of Athens for at least 43 percent less than the previous tenant, according to an adviser on the transaction.

Nike, named after the Greek goddess of victory, agreed to lease 775 square meters (8,300 square feet) from the state- controlled Greek civil servants pension fund, according to CBRE Atria, the CBRE Group Inc. unit that acted for Nike on the deal.

Greece’s economic crisis is prompting banks, local businesses and other owners of commercial real estate to close branches and stores, offering opportunities to foreign companies with cash to spend. Greek retail sales plunged 8.1 percent in October from a year earlier, the 16th consecutive monthly decline, the Hellenic Statistical Authority said.

“International retailers are taking advantage of lower rents and higher vacancy rates in Greece to establish networks that they couldn’t have created previously,” said Yannis Perrotis, managing director of CBRE Atria in Athens.

Nike, via local partner Folli Follie Group (FFGRP), is paying 57,000 euros ($73,000) a month for the first year to lease a ground floor, mezzanine and two basements in the building at 1 Ermou Street and Syntagma Square, CBRE Atria said. That compares with more than 100,000 euros paid by previous tenant Geniki Bank SA (TGEN), the Greek unit of France’s Societe Generale (GLE) SA.

Calls to Nike’s European office in London seeking comment weren’t immediately returned.

The Ermou Street premises had lain empty for almost two years before Nike opened its store in December, Perrotis said. The building also contains the Greek Ministry of Finance, the Syntagma Square post office and a shoe store.

“This is a sign of things to come as the state becomes more in tune with the reduced level of consumption and older tenants can no longer afford to pay rents,” Perrotis said.

Clothing and footwear sales in Greece dropped 28.3 percent in the year through October, according to the statistical authority. Furniture and electrical and household equipment fell 16.9 percent. Last year Kou-Kou SA, Greece’s second-biggest toy retailer, filed for creditor protection amid falling sales. Expert SA, the Thessaloniki-based electronics retailer, also filed for protection.

Commercial-property vacancies in the center of Athens rose to 24.4 percent in August from 18 percent a year earlier, according to the most recent survey by the National Confederation of Commerce, conducted from July 25 to Sept. 6. Twenty-two percent of businesses remained shut in Athens during the period.

Higher vacancies in prime areas have contributed to a 15 percent drop in rents from a year earlier, Eri Mitsostergiou an Amsterdam-based analyst at Savills Plc (SVS) said in a November note.

Greek gross domestic product may show “anemic” growth starting in 2013 after a 7.4 percent contraction in 2011 and a likely drop of about 2 percent this year, Savills said.

CBRE Atria’s Perrotis expects more international retailers to open in Europe’s most indebted country even as the government awaits a final outline on a voluntary swap of the country’s debt with private creditors that may decide the nation’s future.

“We’ll know the outcome of private sector involvement before year-end,” he said. “After that, Greece’s economy will move on to recovery, so large internationals are positioning themselves now for a future change in the downward trend of consumption.” [Bloomberg]

ekathimerini.com , Thursday Jan 19, 2012 (21:24)  
TAIPED waits for green light from Eurostat
Trade deficit shrinks on big drop in imports
SMEs unable to claim subsidies
Taxes kept growing in second quarter
Athens, Nicosia satisfied by EU leaders´ stance toward Ankara
A reference in Friday’s European Council conclusions calling on Turkey to respect Cyprus’s sovereign rights left Athens and Nicosia content with the outcome of the European Union leaders’ su...
Suspended policeman chief suspect in cousin’s murder
A 27-year-old police officer who has been suspended from duty since 2013 for extortion, is being treated as the chief suspect in a murder committed in a suburb of Piraeus on Thursday. Police...
Inside News
BASKETBALL
A win is a win is a win for Olympiakos
A bad Olympiakos defeated a worse Laboral Kutxa 63-57 to make it two out of two in the Euroleague on Friday. In a game where the two teams had an overall field goal rate of about one in thre...
SOCCER
Panathinaikos snatches point at Eindhoven
Panathinaikos offered its fans a glimpse of its glorious past in European competitions snatching a draw at PSV Eindhoven, on an otherwise bad night for Greek soccer in the Europa League, as ...
Inside Sports
COMMENTARY
Tension for tension’s sake?
It is evident that Turkish President Recep Tayyip Erdogan feeds off tension. He would barely have achieved as much as he has – and prevailed – if he had not been so keen to confront a series...
EDITORIAL
Testing ground
The Regional Authority of Attica is a good testing ground for politicians who appear to thrive on accusations to prove whether they can actually solve major problems of a practical nature. T...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. A win is a win is a win for Olympiakos
2. TAIPED waits for green light from Eurostat
3. Trade deficit shrinks on big drop in imports
4. SMEs unable to claim subsidies
5. Taxes kept growing in second quarter
6. Thessaloniki Port expects 2014 to be record year
more news
Today
This Week
1. Woman killed in tram accident in Floisvo, south of Athens
2. Clocks to go back 1 hour on Sunday
3. Venizelos slams Turkey for 'flagrant violation of international law' off Cyprus
4. ECB vies for third time lucky in European stress tests
5. Cyprus GDP upgrade seen as boosting bailout exit plans
6. ECB bank assessment to show 6-billion-euro capital gap, Citi says
Today
This Week
1. The past, present and future of the Greek debt crisis
2. Greece’s closed society is central to its current malaise
3. Greece must stick to reforms, says Schaeuble
4. At least 11 banks to fail European stress tests, three in Greece, report says
5. Cyprus to block Turkey's EU talks after EEZ violation
6. Samaras’s crumbling Greek exit lacks backing from economists
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.