The extensive development of commercial spaces, but also Romanians’ increased appetite for shopping, have encouraged new companies from various industries to expand or enter the local market.
Last year, 17 new brands entered the Romanian market, and most of them chose Bucharest as the first location in the country to open stores. Among the most important entries are Primark, Converse, and Foot Locker, which inaugurated their stores in shopping centers.
“After the extremely good year 2022 for retail, with results that exceed the level recorded in 2019, a reference year for the industry, the market continues its natural evolution and enters the plans of some international retailers, but also new developers on the market, niched on the retail park sector. In addition, new opportunities appear in the market for developers, taking into account that the available commercial spaces are mostly rented, the vacancy rate is 3% in shopping malls and even lower in retail parks“, stated Carmen Ravon, Head of Retail Occupier CEE, CBRE.
“Two trends already developing are also important to consider: firstly, the development of smaller towns and cities, which goes hand in hand with the development of retail parks, a product highly valued by investors and developers. And secondly, the downsizing of hypermarkets which aims to become more efficient on occupied space, an opportunity also for shopping centre owners, especially shopping malls: there is almost no vacant space, so this downsizing can generate additional GLA for new tenants”, added Carmen Ravon.
The stock of modern retail spaces in Romania recorded a total volume of approximately 4.08 million square meters in 2022, after 11 new retail parks were inaugurated last year. Annual deliveries amount to 86,700 leasable sqm, of which Bucharest attracted 41%, with three newly built retail spaces, while the vast majority of spaces were developed in small towns, but strategically placed near large cities such as Iasi, Timisoara and Craiova.