Retail developers maintain their focus on regional cities for new projects

Deniza Cristian 06/04/2022 | 13:26

Romania’s modern retail stock reached 4.02 mln. sq m at the end of the first quarter of 2022 and the year ahead contours as being propitious for both retail formats, retail parks & shopping centers, considering the new supply and the under-construction projects.

 

Even if by the end of the previous year, the stock composition seemed to change, with retail parks gaining more from the total share, 2022 started with the inauguration of Colosseum shopping center extension of 16,500 sq m. Nonetheless, the attributed ratios are: 37% of the total modern stock area is claimed by retail parks while the remaining 63% is attributed to shopping centers, but this ratio will change by end of the year as there are a significant number of retail parks in the pipeline.

The year-to-date new supply amounts 19,500 sq m, the combined surfaces of the extension of Colosseum shopping center in Bucharest developed by Nova Imobilare and Băilești Retail Park in Băilești, Dolj County gathering 3,000 sq m built by the local developer Legabris Prest.

Most of the projects in pipeline will be delivered across the country, regional cities being accountable for 13 of 17 retail schemes to be completed in 2022

By the end of the year circa 147,000 sq m are expected to be added at the country’s modern stock, out of which 22% will be welcomed in Bucharest while the remainder 78% will be delivered throughout the country in main regional hubs as well as tertiary cities.

Shaped in the past two years as the preferred type of retail development, retail parks claim 89% from the 2022 future new supply, while shopping centers will gather the rest of 11%. Moreover, the total area to be delivered with a traditional retail format (shopping center) is comprised in only three schemes, out of which two are extensions (of Electroputere Parc in Craiova and Mall Alba in Alba Iulia) and just one new project, respectively AFI City, developed by AFI Europe in Bucharest.

“These 17 retail development projects of 2022 represent a good number for the market, but it’s important to acknowledge that there is still need of retail spaces as Romania register one of the lowest vacancy rate in Europe (under 3%). And in this context, it is important also to notice more interest from Investors and Retailers for sustainable and zero carbon developments and operations” explains Carmen Ravon, Head of Retail Occupier CBRE for CEE region

As concerns the specialized retail format (retail parks) from the total 14 schemes with a combined gross leasable area of circa 131,000 sq m, estimated to be delivered by the end of the year, only three are extensions of already inaugurated projects (Shopping Park Tulcea, Baia Mare Value Center and Roman Value Center). The other 11 developments representing the overwhelming majority, respectively 91% of the area to be developed as retail parks are projects from small to large sizes located mainly in regional cities.

2022 started with very exciting news about long-awaited brand entries in Romania

“It’s a remarkable year for Retail considering the important names entering the Romanian retail market, and we can attest that Retailers consider Romania and CEE as the best destinations for their business development. We are often involved in their decision-making process when looking to step into a new market. It is a very complex effort and a data-based operation that sometimes takes years and it’s done in every detail” explains Carmen Ravon, Head of Retail Occupier CBRE for CEE region

Romania continues to attract international retailers, and this is year we will witness the entrances of new and desired names on the market. Footlocker already launched a store in AFI Cotroceni, while Primark and CyberJump announced their first openings in Bucharest later this year. An attractive list of other brands that are about to launch their stores contains names like PokeHouse, Submarine Burger, Buddha Original, TEDI, FLO, Bath&Body works, Half Price (part of CCC group), JD Sports, or Suwen Lingerie.

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Deniza Cristian | 02/08/2022 | 10:15

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