Alexey Hegai, a partner at TSPM, discusses challenges and trends in the commercial real estate market and strategies that help malls stay competitive.

Alexey, how do you assess the current state of the retail real estate market in Kazakhstan?

What are the key factors influencing mall development today?

— Many consider competition with e-commerce a major challenge for malls. However, let’s analyze this together. In 2023, e-commerce accounted for 12% of retail turnover in Kazakhstan, while offline sales in malls made up 30%, and traditional markets and bazaars accounted for 58%. The competition with e-commerce is particularly intense in categories like consumer electronics and groceries. To remain attractive to their audiences, malls offer more than just shopping — they provide emotions, social interactions, and unique experiences that cannot be replicated online. This blend of retail, entertainment, and leisure is known as "retailtainment."

How does TSPM adapt to these challenges? Share your experience.

— TSPM is a company specializing in the evaluation, analysis, and management of commercial real estate.
We successfully manage retail properties and provide consulting services to companies and malls in Kazakhstan and across the CIS region.

Managing commercial real estate involves a wide range of tasks: from market research, project design, and construction to technical operations, brokerage, and marketing. We have gone through this entire development cycle with our key projects.

Dostyk Plaza has been a landmark property since its opening in 2014. Its architectural concept was designed by the renowned British firm BENOY. Today, it is one of the most popular malls in Almaty, with annual foot traffic exceeding 13.5 million people. The mall’s area is 134,000 square meters, with 57,000 square meters of retail space housing over 200 tenants. The total turnover for 2023 reached an impressive $272 million.

Shymkent Plaza is the largest mall in Shymkent. We are witnessing growing interest from brands and retail operators, which has prompted plans to expand the property. The second phase will add 20,000 square meters, increasing the mall’s overall area and boosting its market value, allowing it to maintain its leading position in southern Kazakhstan’s commercial real estate market.

Having accumulated significant experience in retail property management, TSPM underwent a Quality Management System audit and was certified under ISO 9001:2015 by the European certification firm DEKRA (Germany).

What trends do you see in the retail real estate market, and what strategies does TSPM implement to address them?

— Omnichannel strategies. Modern consumers expect seamless integration of online and offline experiences from malls. This requires implementing integrated technological solutions. For instance, TSPM is upgrading our mobile app, Smart Plaza, which allows users to navigate the mall, plan shopping routes, book restaurant reservations, purchase movie tickets, pay for parking, and participate in loyalty programs.

— Personalization. Big data analytics helps optimize the customer experience and provide personalized offers and promotions. We have an entire Big Data division, as it represents a breakthrough in operational management, predictive analytics, and forecasting.

— Retailtainment. Creating unique events and entertainment zones in malls fosters visitor loyalty. We actively implement formats that make visiting our malls more engaging, efficient, and enjoyable.

— Sustainability. This is another critical trend. Our malls have successfully achieved OMIR green building certification with a "Gold" rating and are undergoing BREEAM certification. This is an important step, as modern consumers, investors, and partners are increasingly focusing on sustainable business practices and environmental care.

How do you see the future of the commercial real estate market in Kazakhstan over the coming years?

— I am confident that Kazakhstan’s commercial real estate market is ready to attract foreign investment. Given the high cost of capital in the country, we anticipate the entry of foreign investors, which will result in property owners selling assets, issuing company shares, or launching securities.

This year, Kazakhstan witnessed a landmark event in the real estate market. In April 2024, the TSPG REIT — the first real estate investment trust (REIT) in Kazakhstan — was registered in the AIFC regulatory environment. It specializes in retail properties and includes major commercial assets of entrepreneur Serik Tolbasy, managed by TSPM.

Additionally, over the next three years, we forecast active construction of new malls in major cities, with areas exceeding 70,000 square meters, and smaller-scale projects in regional cities, ranging from 15,000 to 20,000 square meters.

What is the biggest challenge for malls today?

— The main challenge is providing a unique customer experience. Malls cannot compete with online stores in terms of assortment or speed but can offer atmosphere, emotions, and service. Our focus is on creating conditions where visiting a mall becomes a special event for the customer.

At TSPM, our strategy for developing retail properties is rooted in flexibility and innovation. In a time of digital transformation, it is essential not only to maintain high standards but also to offer something new that meets the needs of modern consumers.

Link to the full article:
https://forbes.kz/articles/gibkost-i-tehnologii-kak-tspm-vyvodit-upravlenie-trts-na-novyy-uroven-cb0...