Retail supply in 2012 will represent slightly over 50% of the supply completed in 2011 (including extensions), according to JLL.
The list of major projects to be completed in 2013-2014 include: Promenada Mall, the extension of Bucuresti Mall and Plaza Romania in Bucharest, AFI Palace in Ploiesti and the Coresi, NEPI and Cora projects in Brasov.
No new projects were completed in Romania in the third quarter of the year.
In Bucharest, three hypermarkets with small shopping galleries attached will be opened towards the end of the year: Auchan City (developed by Immochan), Cora (developed by Cora) and Kaufland (developed by Intercora).
“On a country level, we expect the openings of Ploiesti Shopping City (developed by NEPI), Cora in Bacau (developed by Cora) and Uvertura Mall in Botosani (local developer),” reads the report.
Romania’s modern retail space stock was estimated at about 2.3 million square meters at the end of 2011.
“Food and fashion retailers are driving the retail demand. With the exception of cash & carry retailers, Metro and Selgros and Real hypermarket (part of the Metro Group), all large format food retailers are announcing significant short and medium term expansion plans. Expansion is occurring either through pre-lease or developing their own projects on previously or recently secured land,” according to JLL.
On the other hand, demand coming from fashion retailers is mainly absorbed by existing centers. Retailers such as H&M, C&A, Takko, Deichman, New Yorker or those owned by Inditex Group play a major part in the renewed tenant mix of modern retail schemes.
“However, securing this select list of retailers, which for most centers guarantees an improvement in the results of the scheme, involves financial discounts from the developer translated into step rents, turnover rents, fit-out contributions or, in the case of less established centers, even turn key retail units,” reads the report.
Prime shopping center rents remained unchanged at between EUR60 and EUR70/sqm/month, while monthly rents for high street units range between EUR60 and EUR65/sqm.