The new owner of the bankrupt shopping center T1 is investing 16 million euros to revive the center that has been generating losses. The boom of shopping centers in Tallinn came to an end with the failure of T1, and now developers are looking elsewhere.
The new owner of the T1 shopping center, which went bankrupt last year, is investing 16 million euros to transform the center, which has been struggling with low customer numbers for years. The new vision is to replace the empty two floors with businesses related to health and well-being.
“So many new brands, new offerings are emerging that people are not very loyal to various retail brands today, but anything related to personal development and well-being – sports, hobbies, health, medicine, various beauty services – that’s where we can provide loyalty to this center and attract loyal customers. Not to be stuck in classical retail, but to find various alternative uses,” explained T1 center’s manager Tarmo Hõbe.
According to Eduard Sorokin, a business real estate expert at Uus Maa, there have been two main trends in shopping centers so far. First, entertainment and dining establishments moved into shopping centers, and then sports centers and gyms followed suit.
“And now, a new third trend is medicine, private medicine. And this trend is certainly growing, and shopping centers will definitely add medical space,” Sorokin added.
After the completion of T1, no new large shopping centers have been added to Tallinn. Currently, commercial real estate developers are more interested in office spaces.
“As far as I know, it’s possible to build another office building next to the T1 property. Just like Ülemiste Center is investing and building 50,000 square meters of not retail, but office and mixed-use space in the coming years. There is currently no new shopping center like that in the works,” Sorokin said.
The center, opened four years ago, has only been generating losses so far. The new owner and the center’s manager hope that by 2027, a Rail Baltic terminal will be completed next to the center, which would bring in customers.
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Aktuaalne Kaamera / Editor: Merili Nael
