Across the border in Korczowa, Poland, the Hala Kijowska shopping center has converted into a shelter for those fleeing Russia’s attacks on Ukraine, according to The U.S. Sun and the Mirror. The rest of the world, too, is feeling the impact of the invasion.
Marketplaces are becoming gathering spots for communities to express support for peace and to raise funds to support victims of the ongoing invasion of Ukraine by Russia. At Lakeside Shopping Center in New Orleans, for example, about 100 gathered to protest the invasion. A host of retailers and restaurants, particularly those operated by Ukrainian immigrants, are raising funds for relief efforts. Some are even removing Russian products. And international chains like H&M and Ikea are shuttering their stores in Russia. Uncertainty over the duration of the conflict is making planning tricky for retailers, as well.
Global investors are reacting, as well. Developer Hines is considering exiting Russia, where it actively has been investing in commercial properties since 2015. And California legislators are considering making state pension funds divest Russian stock holdings.
The sanctions against Russian investors are unlikely to roil international commercial property markets, experts say. Russia’s outbound capital flow totaled about $330 million per year in the past five years, according to Real Capital Analytics. Russians don’t own many commercial properties outside the country. Meanwhile, Ukraine’s market is small and domestic. The conflict’s impact will be more indirect, including higher prices on construction goods, fuel and transportation costs.
By Brannon Boswell
Executive Editor, Commerce + Communities Today