CUSHMAN & WAKEFIELD ESG REPORT 2022
Bucharest, April 2021: The modern retail map of Romania is completing county by county, while real estate developers have delivered in the last year the first modern retail projects in four counties that were not covered yet, namely Dâmbovița, Covasna, Harghita and Călărași. Moreover, in the next period the counties of Vaslui, Caraş-Severin and Olt will also be covered, so the last “strongholds/ forts” not conquered by the mall developers will remain Teleorman and Giurgiu, according to Retail Regional Cities Report made by the real estate consulting company Cushman & Wakefield Echinox.
Cushman & Wakefield Echinox describes the modern shopping centers as new projects or those that have undergone a significant renovation over the last 20 years and whose leasable area exceeds 5,000 square meters. Alexandria, the residence of Teleorman county, and Giurgiu, currently have commercial galleries, but they are below the 5,000 square meters threshold.
Real estate developers are especially active on the retail parks segment, where the access to large stores is made directly from outside, these projects being preferred more than the shoping centers that include more common areas, involve higher investments and are subject to more restrictions in delicate medical situations. Thus, with the exception of Dâmbovița Mall, a mall-type shopping center opened by Prime Kapital and MAS Real Estate in Târgoviște, in the other counties recently covered by developers, there were inaugurated retail parks, namely Sepsi Value Center in Sfântu Gheorghe (Covasna County), NEST Retail Park in Miercurea Ciuc (Harghita County) and Catex Retail Park in Călărași.
There are currently five counties without modern retail centers, counties with a total population of about 1.8 million inhabitants. Reşiţa, with a population of about 73,000 inhabitants, is the largest city without a modern retail project, where there is planned by Ceetrus a major urban regeneration project that will include a shopping center of approximately 35,000 square meters. In Slatina, the Belgian developer Mitiska REIM plans both the expansion of the existing project and the development of a new retail park with an area of about 10,000 square meters. Last but not least, in Vaslui county Prime Kapital will develop Bârlad Value Center (16,500 square meters for lease), while the Polish group Scallier is planning a Funshop retail park in the county residence.
Bogdan Marcu, Partner, Retail Agency, Cushman & Wakefield Echinox: “The fact that retail developers are focusing their attention to a number of tertiary cities, considered less attractive so far, shows that the modern retail market in Romania remains alluring, offering significant development potential. The imminent completion of the national supply of commercial spaces will only bring Romania closer to the level of more developed countries in Central and Western Europe, countries where each community benefits from modern retail options adequate to the purchasing power and consumption habits. ”
On the other hand, the future offer of commercial spaces in Bucharest is limited, the most important projects currently under construction and whose delivery is planned in 2021 being the expansion of the Colosseum shopping center in the northwestern part of the Capital, the first phase of Fashion House Pallady outlet shopping center and Greenfield Plaza, the retail component of Greenfield residential project from Băneasa. These three developments total an area of approximately 30,000 square meters, according to Bucharest Retail Market report.
With a retail stock of only 65,000 square meters and a density of 171 square meters / 1,000 inhabitants, the 5th district of Bucharest is the least served one by modern retail projects, the most important developments in this area being Vulcan Value Center and Liberty Center.
Cushman & Wakefield Echinox is a top real estate consulting company on the local market and the exclusive affiliate of Cushman & Wakefield in Romania, owned and operated independently, with a team of over 60 professionals and collaborators offering a full range of services to investors, developers, landlords and tenants.
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