Lucian Opris (Colliers): Infrastructure investment and urban development to create opportunities for real estate projects

Lucian Opris, Director of Tenant Services for Office 360 & Industrial at Colliers, is gearing up to offer his seasoned perspectives at the prestigious re:FOCUS on Retail, Couriers & Logistics 2024 conference. With a wealth of experience in the commercial real estate sector, Opris brings a comprehensive understanding of the nuances of tenant services within the fast-evolving office and industrial spaces. To preface his appearance at the conference, Lucian Opris also sat down with Business Review for an exclusive interview.

What are the main opportunities and challenges in the real estate sector in 2024?

This year looks better than 2023 for several market segments. Infrastructure investment and urban development are likely to create opportunities for real estate projects, such as new residential developments or commercial projects located in emerging areas. And increased focus on sustainability may bring opportunities for real estate projects that adopt environmentally friendly practices and sustainable construction. Even the fact that remote working is already part of the “new normal” presents an opportunity for the development of innovative office spaces adapted to new requirements.

Still, there are also concerns both internally, such as the country’s significant fiscal imbalance, and externally, where some major uncertainties, particularly regarding geopolitics, persist. Economic uncertainty may affect investment decisions in real estate projects, generating caution among developers and investors. A change in interest rates can also influence lending costs and the affordability of financing for real estate projects. In the longer term, an aging population or migration to certain areas could also influence the demand and supply of real estate.

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Which sector (office, residential, logistics) will see the most projects in 2024?

There are favorable underlying trends in industrial operations, partly due to the friend-shoring movement, availability and cost of the labor force, as explained in our ”Top 10 Predictions Romania 2024” report.  Industrial and logistics sector remains active, as Romania ended 2023 with less than 7 million square meters of modern warehousing, a rather limited supply on a European standard, particularly given the ongoing infrastructure improvements and the expected increased demand amid re-shoring.

Romania’s geographical position, as well as its specific economic advantages – in particular the elevated gap between labor costs and labor productivity, comparable to China, for example -, supports the idea that Romania will become a hotspot for logistics and manufacturing activities in the context of the “friend-shoring” trend. External reports are also taking stock of such trends, as the CEE is set to become the center of gravity for European growth, according to the National Institute of Economic and Social Research. While companies cannot ignore Asia or parts of South America for production, they can diversify their operations better to mitigate risks and the CEE, including Romania, is well placed to see much more investments in the coming years – a trend that Colliers consultants have started to notice as of the last couple of years, even in Romania.

In the retail sector, we see an increasing interest in large projects and we expect that in 2024 a lot of such projects will continue or start development nationally. We also anticipate an increase in both demand and affordability for the residential market.

How much does digitisation and the transition to a green economy influence the real estate sector?

Digitalization and the transition to a green economy are not only opportunities, but also key factors driving the evolution of the real estate sector in innovative and sustainable directions. Digitalization allows the automation and optimization of processes in property management, facilitating document management, expense tracking and building performance monitoring, which translates into significant operational efficiency for owners and managers.

At the same time, the decision-making process for potential tenants or buyers can be accelerated by using virtual reality for virtual tours and online presentations, which practically brings people into contact with properties without physically being there. Digitalisation also allows for properties to be customized and tailored to the specific needs of users. Changes in the way we work have led to increased demand for flexible workspaces and virtual office solutions, and digital technologies make it easier to manage and access these types of spaces, reinforcing the agile office model, which allows for rapid adaptation to changes in the market or client requirements.

In a green economy, there is a growing demand for sustainable real estate. From energy-efficient buildings to green building practices, investing in these technologies can increase the attractiveness of properties. And digital technologies and green building concepts are increasingly being integrated into real estate projects, as innovations bring cost and sustainability benefits.

About Lucian Opris

His expertise is particularly relevant in today’s market, where the interplay between physical retail spaces and logistics is becoming increasingly complex. Opris’s insights are expected to shed light on innovative strategies for optimizing commercial spaces to better serve the needs of retailers and logistics operators in a digitally-driven economy.

This conference is an ideal platform for professionals like Opris to share knowledge, forecast industry trends, and provide actionable solutions for the challenges faced by tenants in retail and industrial sectors. Attendees can anticipate a robust discussion, enriched by Opris’s forward-thinking approach and his commitment to enhancing tenant experiences in commercial real estate.

Join Lucian Opris and other industry leaders at the re:FOCUS on Retail, Couriers & Logistics 2024 conference to discover the latest trends and solutions in commercial tenant services and industrial logistics.