Romania is an attractive market for international retail companies which are interested in leasing large areas, often above 1,500-2,000 sqm, according to a report by real estate consultancy CBRE. Bucharest is the leading city with 66,222 sqm of retail spaces under development, followed byu Craiova, Timișoara and Iași.
From the point of view of total existing retail stock, Bucharest ranks first, with over 1.2 million sqm, which is around 47% of the total retail spaces in Romania. Next come Timișoara (199,200 sqm), Constanța (183600 sqm), Cluj-Napoca (157,600 sqm), and Iași (156,100 sqm).
“Analysing the demand evolution, we see clearly that another mall has room to grow in Bucharest, especially in the North-West part of the city, and it could easily occupy 100,000 sqm,” says Carmen Ravon, Head of Retail Occupiers CEE at CBRE.
CBRE data shows data Romania ranks 5th in terms of retail density in Central Eastern Europe, with 205 sqm per 1,000 inhabitants, after Slovakia (413 sqm), Czech Republic (386 sqm), Poland (276 sqm), and Hungary (231 sqm).
“If during the pandemic the retail park business format registered very good turnovers, now the large shopping centers register better traffic and sales figures, with a value of the shopping bag even higher than the equivalent pre-pandemic period, since customers are interested again in the shopping experience. Hypermarkets are downsizing, retail parks are the main developments of the year, but shopping malls are the most advantaged model business nowadays. In the coming years, the hypermarket model business will reinvent itself – the downsize phase will continue and the non-food area will be replaced by a fresh food area. Moreover, the surface of hypermarkets in the malls will be reduced with an average of 5,000 sqm, and the new area will accommodate new stores,” says Carmen Ravon, Head of Retail Occupiers CEE at CBRE.
Approximately 70 percent of the current retail stock is built before 2013, and only 500,000 sqm were refurbished in the last two years.
In a recent study on retail occupiers conducted by CBRE in EMEA region, some 45% of retailers either agree or strongly agree that green leases will be included in lease negotiations within the next three years.
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