Romania Marketbeat Spring 2010.cdr

Transcription

MARKETBEAT
ROMANIAN REAL ESTATE MARKET REPORT
A CUSHMAN & WAKEFIELD RESEARCH PUBLICATION
SPRING 2010
MARKETBEAT
CUSHMAN & WAKEFIELD SERVICES IN ROMANIA
Cushman & Wakefield (C&W) is the world's largest privately held real
estate services firm. With more than 15,000 employees, the group
offers coverage through 230 offices in 58 countries across the world.
HEADQUARTERS, OPERA CENTER BUCHAREST
As a global real estate company, C&W delivers integrated solutions to
our clients by actively advising, implementing and managing on
behalf of landlords, tenants and investors through every stage of the
real estate process. C&W represents multinational corporations,
financial institutions, developers, entrepreneurs, government entities
and small-to-medium-size companies.
C&W IN ROMANIA
The office was opened in 2007, following the acquisition of ACTIV
Consulting, which had been Cushman & Wakefield's Associate
Office in Romania for 11 years. The head office is based in Bucharest
and the regional office is based in Timisoara.
We have dedicated teams by sector providing a complete range of real
estate services, such as investment consultancy, tenant & landlord
representation, development consultancy, office agency, retail agency,
industrial agency, land agency, asset & facilities management,
valuations, research & consultancy. Our main departments include:
RETAIL AGENCY
Our in-depth knowledge of the local market, combined with
international experience, enables us to advise retailers on their
expansion programs, as well as landlords and developers looking to
attract high performing retail groups.
We are involved in all types of retailing, ranging from high street
shops to shopping centres, and are also active in the retail park sector.
Our services includes research and market surveys, development
consultancy, letting, asset management/re-letting and international
tenant representation.
OFFICE AGENCY
Our office team provides both tenant and landlord representation,
relying on the experience of the local team and international support
from the entire network. We provide a variety of services towards
development consultancy, letting activity, relocation projects,
property management and strategic planning for tenants.
CAPITAL MARKETS
The local capital markets department has been involved in several
large investment transactions in Romania, offering professional
consultancy for major international companies, including the
development of real estate premises, sales consultancy, acquisition
consultancy, management of the "Due Diligence" process and
negotiation of all legal documents relating to the sale and acquisition
process.
INDUSTRIAL
The Industrial Agency team acts as agent and adviser to industrial,
distribution and retail clients, both national and international, helping
them define and interpret their real estate strategies.
LAND AGENCY
The land department provides our clients with the best solutions
regarding land acquisition all over Romania, finding and selecting
sites, as well as negotiating the best financial terms of transaction.
VALUATION
We are well placed to advise on portfolios and individual properties
of all types across the region. We provide valuation services to public
and private companies as well as to banks and institutional funds.
ASSET MANAGEMENT
RESEARCH
In Europe, C&W has been appointed as Asset Managers – Design
Consultants for over 100 shopping centres, totalling in excess of 3
million sq m, for approximately 1.85 million sq m of office space, as
well as for a further 1.4 million sq m of projects under construction.
In Romania we have over 10 major projects under management,
including shopping centres and retail parks, in some of the largest
Romanian cities.
2
We have been involved in research and consultancy services for major
real-estate projects in Romania, offering professional services for
major companies, whom we assist in reaching the optimal decisions
for their business development. Our main services include research
data, market overviews, best-use studies, conceptual analysis and
feasibility studies.
ROMANIA I REAL ESTATE MARKET REPORT I SPRING 2010
TABLE OF CONTENTS
ABOUT ROMANIA
INTRODUCTION
MAP OF ROMANIA
CUSHMAN & WAKEFIELD’S SERVICES IN ROMANIA.......................................... 2
Ukraine
Ukraine
Baia Mare
Suceava
Satu Mare
Hungary
Oradea
Iasi
Republic of
Moldavia
ABOUT ROMANIA.......................................................................................................... 3
TABLE OF CONTENTS.................................................................................................. 3
EXECUTIVE SUMMARY..................................................................................................
4
Cluj-Napoca
Tg. Mures
Arad
Bacau
ROMANIA BACKGROUND
Timisoara
DEMOGRAPHY................................................................................................................. 6
Sibiu
Brasov
ECONOMY......................................................................................................................... 6
Galati
INCOMES AND EXPENDITURES................................................................................ 7
Braila
Pitesti
Serbia
Craiova
Ploiesti
Bucharest
RETAIL MARKET
Constanta
Black Sea
RETAIL................................................................................................................................. 8
SHOPPING CENTRES..................................................................................................... 9
Bulgaria
Romania is the second largest country in Central and Eastern Europe
(CEE) and the 12th largest in Europe, covering a total geographical
area of 238,391 km2. It is bordered by Bulgaria to the South, Serbia
and Hungary to the West, Ukraine to the North and East and the
Republic of Moldavia to the East. The Black Sea coastline represents
the South-Eastern border.
Romania has a total population of 21.5 million inhabitants, with an
average population density of 90 persons per km2.
The administrative division includes four macro regions, each
including two development regions. Romania currently has 42
counties, including the capital Bucharest, 320 municipalities and
towns, and 2,855 communes.
RETAIL PARKS................................................................................................................... 11
HYPERMARKETS.............................................................................................................. 12
SUPERMARKETS............................................................................................................... 12
DISCOUNTERS................................................................................................................. 12
DIY........................................................................................................................................ 13
FURNITURE....................................................................................................................... 13
OUTLET CENTRES.......................................................................................................... 13
HIGH STREET.................................................................................................................... 14
OFFICE MARKET
OFFICE OVERVIEW......................................................................................................... 15
FORECAST......................................................................................................................... 16
BUCHAREST OFFICE MAP........................................................................................... 17
INDUSTRIAL MARKET
The capital of the country is Bucharest, the largest city in Romania
with a registered population of 1,943,981 inhabitants as of July 2008,
and an estimated population of 2.5 million people for the entire
metropolitan area.
INDUSTRIAL OVERVIEW.............................................................................................. 18
BUCHAREST LOGISTICS MAP.................................................................................... 19
RESIDENTIAL MARKET
There are 24 cities with a population of more than 100,000, five of
which have a population exceeding 300,000, namely Bucharest, Iasi,
Timisoara, Cluj-Napoca and Constanta.
RESIDENTIAL OVERVIEW.............................................................................................. 20
INVESTMENT MARKET
Romania is a parliamentary republic. The legislative branch is
represented by the Parliament, including the Deputy Chamber and
Senate, elected for a 4-year term. The last elections were held in 2008.
Parliament designates the Prime Minister, currently Emil Boc, who
then appoints the Government, the executive power of the country.
The President of Romania is elected by popular vote every five years.
Currently the President is Mr. Traian Basescu; the next elections are
due to be held in 2014.
Romania became a member of NATO in 2004 and joined the
European Union in January 2007. The adoption of Euro currency is
expected in 2014.
INVESTMENT OVERVIEW............................................................................................. 21
FORECAST......................................................................................................................... 21
OTHER
VALUATION SERVICES................................................................................................... 22
C&W ROMANIA WEB SITES........................................................................................ 22
CONTACTS
OUR OFFICE AND CONTACTS................................................................................. 23
3
MARKETBEAT
EXECUTIVE SUMMARY
ECONOMY DIRECTIONS
GDP: The fall is likely to stop in 2010 and to stabilise to a
forecast growth placed between -0.5% and +0.5%.
INFLATION: A level of 3.7% is announced by the official
prognosis, down from the 5.6% registered in 2009.
UNEMPLOYMENT: As the economic environment will
stabilise, it is expected that unemployment will stop the
growth, with potential to decrease during H2 2010.
FDI: The volume is expected to register a 15% year-on-year
expansion to a level of 5.4 billion Euro.
RETAIL MARKET DIRECTIONS
SUPPLY: The construction continues for a limited number of
schemes, the new stock to be delivered in 2010 being
estimated to be 40% lower than in 2009.
DEMAND: Continue to maintain a very low level, most of the
retailers stopped expansion until the recovery of the sales. A
limited number of major international retailers continue
expansion, but being more prudent and paying lower rents.
RENTS: Are likely to maintain the levels registered in 2009,
although further slightly decreases are possible.
VACANCY: Increasing vacancy rate especially for
decentralized locations and cities with a population of less
than 200,000.
OFFICE MARKET DIRECTIONS
SUPPLY: A volume of 260,000 sq m is estimated to be
delivered in 2010 in Bucharest (-38% compared with the
record-high of 2009). Most of the new supply continues to be
located in the Northern part of the city (Barbu Vacarescu,
Pipera, DN1) .
DEMAND: Is reduced, most of the companies not having plans
of expansion and having a prudent attitude as a consequence
of the uncertainty regarding the economic evolution.
RENTS: Further decreases could be registered, especially for
the decentralized areas.
VACANCY: Are likely to increase even further, some of the
main buildings to be delivered in 2010 not being able to secure
tenants.
4
ECONOMY PERFORMANCE
The economic environment was largely affected by crisis during
2009, almost all the main indicators registering a negative evolution.
The GDP reached a negative growth of 7.1%, the FDI volume
reduced at half, unemployment increased with 77%, while the salaries
decreased with 6% (expressed in Euro).
The economy is likely to stop the fall during 2010 according with the
official forecast, with potential to restart growing during the future
years. Despite this, there is still a large uncertainty regarding the
economic evolution and the results of 2010. The government is being
criticized for the lack of solutions to stimulate the economy and to
reduce the budget expenses.
RETAIL MARKET
A new shopping centre stock of 313,550 sq m GLA was delivered in
2009 (-55% year-on-year), including 10 new schemes and 5
extensions. Half of the new surface is located in Bucharest.
The total stock reached a volume of 2,182,000 sqm, corresponding to
a density of 101 sq m GLA/1,000 population (45% of the EU-27
average).
Retail warehouses are still dominated by stand-alone units or units
attached to shopping centre projects, few retail parks being
operational.
There is a single outlet center in Romania, Fashion House of 16,000
sq m GLA being opened in 2008 in Bucharest.
The development program was largely affected by the drop of
demand, tough financial conditions and lack of investors. A volume
of 417,000 sq m GLA is announced for delivery in 2010-2011, but
only 60-70% of this is likely to comply the deadline.
The recovery of the retail market is likely to happen only after the
growth of retail sales restarts and the confidence of retailers returns.
OFFICE MARKET
A record-high volume of 420,000 sq m GLA was delivered last year in
Bucharest, half of this volume being placed in Dimitrie PompeiuPipera area. Coupled with the decreasing demand, this new stock put
a large pressure on the average rental levels, while the vacancy rates
increased. The total volume of modern office space in Bucharest
reached 1.48 million sq m GLA (765 sq m/1,000 population).
Take-up volume, including both new leases and renewals, acounted
for a surface of 168,000 sq m GLA, 16% lower than in 2008 and 47%
lower than the peak of 2007.
The economic crisis has put a stop to the development program, no
new projects being started since the end of 2008. The market activity
is expected to maintain at a relatively low level in 2010, the demand
not being likely to improve. The vacancy rates will increase, while the
rental level could register further decreases.
INDUSTRIAL MARKET
The new supply delivered in Bucharest in 2009 (excluding the
projects developed for owner occupation) reached only 20,750 sq m,
corresponding to a 90% drop from the record-high volume in 2008.
The total volume reched in Bucharest approx. 678,000 sq m,
significantly lower than in the rest of the CEE capitals.
Take-up in Bucharest decreased by 67% to a volume of 53,000 sq m.
Most of the leases were done with properties located along A1
motorway.
The average rents were placed at 4 Euro/sq m/mth. in Bucharest,
likely to maintain during 2010.
The main projects started in 2009 will be developed according with
the demand registered on the market.
RESIDENTIAL MARKET
The blockage of the market continued during 2009, despite the two
programs initiated by the state in order to encourage the residential
acquisition.
Demand maintained low during the entire year as a consequence of
several reasons related to the economic crisis and expectations for
further price decreases.
The prices continues the downward trend, reaching at the end of the
year an average level of 1,300 Euro/built sq m for the new
apartments in the semi-central area of Bucharest and 800-1,000
Euro/built sq m for periphery locations.
Despite the drop of prices, the sales have not picked up, as the market
expectancy is that values will keep dropping, mortgage conditions are
oppressive and, most important, the economic climate discourage
people from making investments in long-term assets.
INVESTMENT MARKET
The market was blocked in 2009, a volume of only 129 million Euro
being registered. This volume represents only 6.8% of the volume of
2007 (1.9 billion Euro). The largest transaction was the acquisition of
European Retail Park Braila for Euro 63 million.
During 2009, prime yields continued to soften by another 150 basis
points, reflecting investors’ sentiment regarding the country risk,
performance and quality of projects put on sale.
There are no signs that the market will recover in the short term. It is
likely that a few number of transactions will take place in the
following months, involving small properties of less than 50 million
Euro.
The limited number of investors targeting Romania at present are
opportunistic, in search of distressed properties, mainly in Bucharest
and the largest cities of the country.
INDUSTRIAL MARKET DIRECTIONS
SUPPLY: A new supply of approx. 80,000 sq m is announced
for delivery in 2010.
DEMAND: Increasing demand for light industrial and storage
space, coming from international companies.
RENTS: Likely to maintain the same average levels in
Bucharest, with a slight reduction for the ret of the cities.
VACANCY: Is expected to maintain at the same levels as
seen in 2009.
RESIDENTIAL MARKET DIRECTIONS
SUPPLY: The new supply in 2010 is likely to be significantly
reduced as compared with last year, the construction being
put on-hold for most of the projects.
DEMAND: There are no signs that demand will return on
short-term; mortgage conditions remain restrictive and the
economic status is not encouraging.
PRICES: The downturn is expected to continue both for new
and old residential units; the demand is low, projects close to
completion are only partially sold, financing conditions remain
restrictive and people expect further decreases.
DEVELOPMENT: Construction on new projects has not
restarted in the last months, the blockage being likely to
maintain throughout 2010.
INVESTMENT MARKET DIRECTIONS
OUTLOOK: The evolution of the investment market is likely
to maintain the same coordinates as in 2009. The market
continue to be market by the difference between the
developers’ expectations and the price ready to be offered by
investors. Investors are seeing opportunities in mature
Western markets and are not focusing on the local market.
VOLUME: The investment’s volume is likely to maintain very
low in 2010.The deals are likely to involve small volumes and
generally distressed properties.
YIELDS: The softening of yields is likely to be moderate in
2010, the increases not being expected to exceed 25 basis
points.
5
MARKETBEAT
ROMANIA BACKGROUND
DEMOGRAPHY
Romania is the second most populated country in Central & Eastern
Europe, with a total number of 21,504,442 inhabitants (July 2008).
The population evolution started a downward trend after 1990,
registering a 7.3% decrease since then. The average population
density is 90.2 inhabitants per km2 , the highest levels being found in
Bucharest-Ilfov area, Prahova, Iasi and Galati counties.
The urban population increased from 54.3% of the total population
in 1990 up to 55% in 2008; the gender distribution shows in 2008 a
percentage of 51.3% women and 48.7% men.
ROMANIA, DEMOGRAPHIC INDICATORS
2002 Census
2008
21,794,793
21,504,442
90.9
90.2
Urban (%)
53.3%
55.0%
Rural (%)
46.7%
45.0%
Male (%)
48.8%
48.7%
Female (%)
51.2%
51.3%
0-14 years (%)
17%
15%
15-24 years (%)
16%
15%
Population
Population density (people/km2)
Area Distribution
Sex Distribution
The Romanian population has been showing an ageing trend, with
the 0-14 years and 15-24 age groups declining in numbers, while the
over 65 year old population is increasing, representing 15% of the
total population (July 2008).
Age Distribution
25-49 years (%)
36%
37%
The life expectancy is on an upward trend, increasing from 69.5 years
in 1990 up to the highest level recorded so far of 73.0 years in 2008.
This is considered the result of the improvement in the quality of life
determined by the increasing incomes and purchasing power.
50-64 years (%)
17%
18%
over 65 years (%)
14%
15%
Romania has 24 cities that account for more than 100,000 inhabitants,
out of which five exceed 300,000 people. The capital Bucharest is the
most populated city in Romania and as well in the entire CEE region.
The official data for 2008 shows that the city had 1.9 million
inhabitants, but including the unregistered population and
surrounding areas, the total population of the metropolitan area is
estimated at approximately 2.5 million people.
A number of 891,098 students were recorded in 2008/2009 in
Romania, representing a 44% increase as compared to 5 years ago.
Over 43% of the total number of students are registered in
Bucharest.
ECONOMY
After nine years of positive growth, the Romanian economy saw
regress in 2009, all the indicators deteriorating. The early effects of
the economic crisis recorded in the last quarter of 2008 transformed
into a economic recession last year. The negative evolution registered
in all sectors of the local economy reversed the GDP evolution from
2008 (+7.1%) into a negative growth of 7.1% in 2009.
Some slight signs of improvement have been registered lately, it being
expected that the economic environment will stabilise during 2010
with the potential to restart growth in 2011-2012. The official
prognosis indicates a GDP result between -0.5% and +0.5% for
2010, followed by +2.4% in 2011 and +3.7% in 2012.
The economic restart will depend not only on the international
recovery, but especially the government's capacity to adopt the right
decisions in order to stimulate production, consumption and
financing, and to reduce the budget expenses.
6
Source: National Institute of Statistics
POPULATION OF MAJOR CITIES, JULY 2008
No. City
Inhabitants
No.
City
Inhabitants
1
Bucharest
1,943,981
13
Pitesti
167,317
2
Iasi
313,994
14
Arad
166,237
3
Timisoara
311,481
15
Sibiu
153,406
4
Cluj-Napoca
308,763
16
Tg.Mures
144,806
5
Constanta
302,242
17
Baia Mare
138,932
6
Craiova
297,539
18
Buzau
132,368
7
Galati
291,608
19
Botosani
114,885
8
Brasov
278,712
20
Satu Mare
112,860
9
Ploiesti
229,258
21
Ramnicu Valcea
110,447
10
Braila
212,981
22
Piatra Neamt
107,126
11
Oradea
204,578
23
Suceava
106,753
12
Bacau
176,743
24
Drobeta-Turnu Severin 106,451
Source: Romanian Statistical Yearbook 2009
ECONOMIC INDICATORS
2006
2007
2008
2009
2010*
-7.1%
0.5%
GDP Growth (%)
7.9%
6.2%
7.1%
GDP/cap. (Euro/year)
4,530
5,788
6,499
n/a
n/a
Inflation (%)
6.6%
4.8%
7.9%
5.6%
3.7%
Unemployment (%)
5.2%
4.0%
4.4%
7.8%
6.2%
8.7
7.0
9.3
4.7
5.4
FDI (Billion Euro)
Net Salary (Euro/mth.)
245
312
348
326
330
Cars/1,000 people
149
164
187
n/a
n/a
Source: National Institute of Statistics, National Commission of Prognosis; National Employment Agency; DRPCIV
*Forecast
ROMANIA I DEMOGRAPHY AND ECONOMY I SPRING 2010
Inflation was one of the very few indicators to improve during 2009,
decreasing from 7.85% (2008) to 5.6%. For 2010 the target is for
3.7% inflation. The Euro adoption proposed for 2014 might be
postponed as a consequence of the inflation evolution during the last
3 years and tough criteria that must be achieved.
Incomes are also inflated by the supplementary inflow of money sent
by Romanians working abroad, estimated to be in the range of 5-7
billion Euro in 2008. Over two million Romanians worked officially
abroad during 2009, the majority of them being employed in Italy
(968,000 people) and Spain (796,000 people).
Unemployment levels continued to increase in 2009, from 4.9% in
January up to 7.8% in December. The largest part came from the
private sector, while the public sector had a limited impact, the
government preferring to postpone the restructuring until after the
presidential elections.
After three years when retail sales registered average yearly growth
rates of 10-25% depending on the sector, the evolution reversed in
2009. The growing unemployment levels, stagnation of incomes, and
increasing concern regarding the economic evolution, brought a drop
of sales in every sector. The most affected were the sales of longterm use merchandise, the turnover registered in the automotive
sector contracting by 36% y-o-y. It is expected that retail sales will
stop their decline during the second half of 2010, the rate of decrease
reducing during the first three months of the year.
Since 2004, Romania has become one of the main destinations for
foreign direct investments in CEE. In 2009 Romania attracted 4.7
billion Euro, only half of the FDI volume of 2008. The main
investors in Romania come from Austria, Holland, Germany, France,
Italy and Greece. The main destination is Bucharest, the Capital
accounting for over 60% of the total volume of FDI attracted since
1990.
INCOMES AND EXPENDITURES
The economic growth determined a rapid increase of income levels
during 2004-2008. Over five years the average net monthly salary
expressed in Euro increased by 269%, reaching the highest level of
348 Euro/month in 2008.
ROMANIA, RETAIL SALES EVOLUTION (%)
2006
2007
2008
Food, beverage and tobacco
+27.7%
+27.8%
+11.4%
H1 2009
Non-food
+21.1%
+8.6%
+14.4%
-8.4%
Automotive sector
+18.0%
+24.3%
+15.7%
-36.0%
Services
+13.6%
+3.7%
-0.3%
-10.6%
-1.0%
AVERAGE NET MONTHLY SALARY IN ROMANIA
350
300
250
Euro
The negative economic growth of 2009 put a stop to the steady salary
increase. In 2009 the average net monthly salary reached 1,381 RON
(+7.7% year-on-year), but expressed in Euro corresponded to a 6.4%
reduction compared with 2008.
200
150
Bucharest has by far the highest level of incomes in Romania. Last
year the average gross monthly salary reached 2,614 RON (617 Euro),
while the average net monthly salary was 1,883 RON (444 Euro). This
level is 36% higher than the country average.
Despite the fast growing rate registered in the last years, the income
levels and the purchasing power in Romania still remain some of the
lowest in EU, especially compared with the Western markets.
100
50
0
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
ROMANIA, SPENDABLE INCOME PER HOUSEHOLD, Q2 2009
Sector
The last official data available for Q2 2009 shows that disposable
income increased year-on-year by 13.6%, an average household's
disposable income per year being RON 17,655 (Euro 4,211). Food &
beverage continues to represent the main destination (41.9%) of the
official expenditure, albeit a decreasing share.
TOTAL
Food and beverage
Real incomes are higher than the official statistics suggest as a
consequence of the high level of unrecorded earnings. The black
market is presently estimated to add a further 20% - 30% to the
official salary in Romania (important variations from one source to
another), including a wide range of activities varying from cash street
retail to unrecorded employment contracts (e.g. companies not
declaring employees' real earnings).
Health
Transportation
Alcohol and tobacco
Clothing and footwear
House service charges
Home furnishings
Communication
Leisure
Education
Restaurants and dinning out
Other services and products
Value (Euro/mth.)
Share (%)
350.9
147.0
24.5
22.4
50.1
100.0%
41.9%
7.0%
6.4%
14.3%
4.4%
4.5%
5.8%
5.2%
4.4%
1.0%
1.4%
3.7%
15.4
15.8
20.3
18.2
15.4
3.5
4.9
12.9
7
MARKETBEAT
RETAIL
The rapid market development started in 2006 was significantly
slowed down in 2009 by the effects of the economic crisis. All the
main aspects of the retail market such as the development program,
demand, retail sales, rents and occupancy rates registered negative
performance last year.
AFI PALACE COTROCENI, BUCHAREST
The increasing concern towards the retail environment in 2009 was
confirmed by the retail sales evolution which registered a year-onyear decrease of 9-12%, after years of steady positive movements.
The market sentiment got worse and demand dropped, influencing
the entire market.
The development program reduced considerably during 2009, only
part of the schemes already under construction being continued. In
2009, a new shopping centre stock of 313,550 sq m GLA was
delivered across the country, corresponding to a reduction of 55%
compared with the previous year.
Retail warehousing continued to be represented mainly by standalone units, rather than by true retail park schemes. The retail park
stock increased last year by only 27,000 sq m, half of the surface
delivered in 2008, most of the projects being postponed.
RETAIL MARKET DIRECTION 2010
Supply
City
Demand
Rental Levels
ROMANIA
From the second half of 2008, there were no new projects started,
the developers facing the worsening market conditions such as lack
of financing, decreasing property values, low levels of demand and
almost no interest for the Romanian market coming from foreign
investors. For an important number of projects in the pipeline,
construction was stopped mainly as a consequence of not having
reached a satisfactory pre-lease level.
Bucharest
>200,000 people
100,000-200,000 people
<100,000 people
MAJOR RETAILERS IN THE MARKET
Despite a relatively large interest to enter the local market, a limited
number of international retailers entered Romania during 2009, most
of them postponing their entry until the market will restart a positive
evolution.
Rental levels reversed their growing trend into a significant
contraction by up to 30-50% compared with the record-high levels
registered in mid 2008. Both the shopping centre and the high street
markets were affected, regardless of being located in small, medium
or large cities throughout the country.
Vacancy rates increased, some of the schemes recently opened or
placed in decentralized locations not being able to secure tenants or
to keep the existing ones as a consequence of the poor operational
results. Of the projects delivered in 2009, only the dominant schemes
within prime locations reached an optimal occupancy rate.
The recovery of the retail market is likely to happen only after the
growth of retail sales restarts and the confidence of retailers returns.
The current crisis is likely to make retailers, banks and developers
more cautious, influencing the development program for the next
years. It is expected that only feasible projects planned according with
the local environment, good location and concept will be started. The
experience of developers is likely to be of increasing importance in
gaining retailers' confidence in any project.
8
Hypermarket
Carrefour, Real, Auchan, Cora, Kaufland
Cash & Carry
Metro, Selgros
Supermarket
Billa, Carrefour Market, Mega Image, Interex, G’Market
Discounters
Plus, Profi, Penny Market, MiniMax, Lidl (from 2010)
DIY
Praktiker, Dedeman, Bricostore, bauMax, OBI, Hornbach,
Mr.Bricolage, Interhome, Ambient, Leroy Merlin (soon)
Furniture
IKEA, KIKA, Mobexpert, Elvila, Staer, JYSK, Mobilia
Electrical Goods
Altex, Flanco, Domo,Technomarket
Fashion
Zara, C&A, Marks&Spencer, Peek & Cloppenburg,
Debenhams, Sprider, New Yorker, Esprit, Takko, Benneton,
Kenvelo, Reserved, Koton, Mango, Cortefiel, Next, Promod,
Pimkie, Orsay, Bernardi, Peacocks, GAP, Kiabi
Leonardo, Deichmann, Humanic, Bata, Aldo, Nine West,
Otter, Ecco
Footwear
Sport Goods
Intersport, Hervis, Decathlon, Nike,Adidas, Puma
Source: Cushman & Wakefield, April 2010
ROMANIA I RETAIL MARKET I SPRING 2010
SHOPPING CENTRES
SHOPPING
PER
1,000 INHABITANTS,
END
2009
ROMANIA CENTRES
SHOPPING
CENTRE
STOCK - SUPPLY/
YEAR
Despite the effects of the crisis affecting the market, a number of
projects started in 2007-2008 were completed in 2009. Ten new
shopping centres and 5 extensions were delivered, increasing the
existing stock by 17% year-on-year.
The total new stock completed in 2009 accounted for 313,550 sq m
GLA, corresponding to a 55% decrease compared with the peak of
2008 (706,984 sq m GLA). Romania was ranked 8th in Europe in
terms of the annual volume of shopping centre space completed,
compared with the 5th position occupied in 2008.
The total modern shopping centre space in Romania reached, at the
end of 2009, a volume of 2,182,000 sq m GLA and a density of 101
sq m GLA/1,000 population.
This represents approximately 45% of the EU-27 average density
(225 sq m GLA/1,000 pop.) and continues to be placed below other
countries of the CEE region, such as Czech Republic (192), Poland
(173) and Hungary (119).
ROMANIA SHOPPING CENTRE STOCK - SUPPLY/ YEAR
1. Norway
2. Sweden
3. Ireland
4. Luxembourg
5. Netherlands
6. Austria
7. Finland
8. Denmark
9. Estonia
10. Portugal
11. UK
12. France
13. Slovenia
14. Latvia
15. Lithuania
EU-27 Average
16. Spain
17. Italy
18. Switzerland
19. Czech
20. Poland
21. Germany
22. Slovakia
23. Hungary
24. Croatia
25. Malta
26. Belgium
27. Romania
28. Russia
29. Turkey
30. Ukraine
31. Greece
32. Bosnia Herz.
33. Bulgaria
34. Serbia
800,000
0
100
700,000
300
400
500
600
700
sq m GLA per 1,000 population
600,000
sq m GLA
200
500,000
Almost half of the new stock delivered in 2009 is located in
Bucharest. Last year the Capital registered a record-high of shopping
centre development with the completion of 152,300 sq m GLA.
400,000
300,000
200,000
100,000
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
SHOPPING CENTRE STOCK DELIVERED IN EUROPE IN 2009
- TOP 10 COUNTRIES No
Country
New Stock
(sq m GLA)
SC Density
(sq m GLA/1,000 pop.)
1
Russia
1,592,202
72.6
2
Turkey
652,622
70.7
Two new shopping centres opened, namely AFI Palace Cotroceni
(79,000 sq m GLA) and Grand Arena (44,500), while another three
schemes were extended (Plaza Romania, Militari Shopping and Iris
Shopping Centre Titan).
The total stock in Bucharest increased by 33% year-on-year up to a
total of 617,700 sq m GLA, corresponding to a density of 318 sq m
GLA/1,000 inhabitants.
Bucharest reached almost a similar shopping centre density as in
Budapest (340), but continues to represent only half of the levels
seen in Prague (631), Warsaw (616) and Bratislava (640).
3
Italy
633,124
215.1
4
Poland
628,400
173.1
5
France
530,401
261.0
6
Netherlands
380,000
365.7
City
2009
GLA (sq m)
7
Germany
371,900
159.3
Warsaw
1,046,360
616
0
616
8
Romania
313,550
101.5
Prague
787,000
631
43,000
666
9
Ukraine
300,000
54.0
Budapest
576,428
340
20,000
352
10
Portugal
280,010
273.2
Bucharest
617,703
318
108,314
373
4,515,989
225.6
Bratislava
274,546
640
167,896
1,032
EU-27
SHOPPING CENTRE STOCK IN CEE CAPITALS
GLA (sq m
per 1,000 pop)
Pipeline 2010 End 2010 (sq m
(sq m)
per1,000 pop)
9
MARKETBEAT
The existing shopping centre density in the largest cities in Romania
includes large variations from one city to another, but as an average is
placed presently in the range of 250-400 sq m GLA/1,000
population. This level shows further potential for growth, especially
compared with similar markets in Czech Republic and Poland where
densities have already reached 400-600 sq m GLA/1,000 population.
SHOPPING CENTRE STOCK IN THE LARGEST CITIES, END 2009
No
City
Population
GLA
(sq m)
GLA (sq m
per 1,000 pop)
1
Bucharest
1,943,981
617,703
318
2
Iasi
313,994
87,000
277
4
Timisoara
311,481
127,375
409
3
Cluj-Napoca
308,763
142,819
463
5
Constanta
302,242
109,997
364
6
Craiova
297,539
37,783
127
7
Galati
291,608
20,102
69
8
Brasov
278,712
70,517
253
9
Ploiesti
229,258
47,636
208
10
Braila
212,981
64,079
301
11
Oradea
204,578
132,989
650
SHOPPING
CENTRE CENTRE
SPACE INSTOCK
PIPELINE
2010 - 2011
ROMANIA
SHOPPING
- SUPPLY/
YEAR
1. Russia
2. Turkey
3. Italy
4. France
5. Bulgaria
6. Spain
7. Poland
8. UK
9. Germany
10. Romania
11. Netherlands
12. Slovakia
13. Portugal
14. Ukraine
15. Austria
16. Croatia
17. Czech Rep
18. Belgium
19. Serbia
20. Greece
21. Ireland
22. Slovenia
23. Hungary
24. Denmark
25. Sweden
26. Switzerland
27. Bosnia &
28. Lithuania
29. Latvia
30. Norway
31. Finland
32. Malta
33. Estonia
34. Luxembourg
The largest shopping centre density in Romania is registered in
Suceava with 1,149 sq m GLA/1,000 inhabitants. The city includes 4
shopping centres, all of them being completed in 2008-2009 by both
international and national developers. It is likely that the general
operation of these schemes will suffer, especially as the purchasing
power in the area is limited.
0
0.5
1.0
Million sq m
1.5
2.0
CITY MALL, BUCHAREST
Starting with 2006, Romania became a target for international
developers, a large number of companies exploring the local market.
Some of these developers such as Sonae Sierra, Plaza Centers, AFI
Europe, ECE, TriGranit, Raiffeisen Evolution, GTC, Vinci, Dawnay
Day and Redevco opened offices in Romania and announced
projects. During 2006-2008 over 100 projects were announced on the
market, but few of them were started.
The economic crisis has stopped the accelerated shopping centre
development in Romania, presently few projects being under
construction. Most of the projects were put on-hold for an
undetermined period of time, even if for some of them construction
had already started.
According to the developers' announcements, during 2010-2011 the
new shopping centre stock to be completed accounts for
approximately 417,700 sq m GLA. Taking into account the tough
market environment and the number of schemes for which
construction is progressing, it is likely that only approximately 6070% of the planned stock will be delivered by the end of 2011.
In 2010 the stock estimated to be delivered accounts for only approx.
10
SHOPPING CENTRES UNDER CONSTRUCTION
TO BE COMPLETED IN 2010
Scheme
City
Sun Plaza
2
GLA (sq m)
Opening
Bucharest
80,000
Q1 2010
Polus Center
Constanta
48,130
Q4 2010
3
Gold Plaza
Baia Mare
30,000
Q3 2010
4
Atrium Center
Arad
29,500
Q1 2010
5
Estrada Shopping Center
Bucharest
25,400
Q2 2010
No
1
160,000-200,000 sq m GLA as part of 4-5 schemes. In the first 4
months of 2010 two schemes were completed, Sun Plaza in
Bucharest (80,000 sq m GLA) and Atrium Center in Arad (29,500).
The development of new schemes became difficult starting with the
second half of 2008 as a consequence of several main reasons such as
lack of financing, retailers' demand contraction, softening yields,
decreasing rents, etc.
Banks have stopped financing retail projects, asking for higher
interest rates, over 50-60% pre-lease agreements, 50% equity
contribution, etc.
Retailers' demand for new shopping units fell to low levels starting
with the end of 2008 as the economic crisis started to affect retail
sales and market sentiment. Retailers have postponed their expansion
plans and started to close some of their unprofitable units, especially
outside Bucharest, which had opened during the period of fast
expansion in 2007-2008. The national networks and franchise
retailers especially have been faced with financial difficulties and lack
of financing for further expansion. International discount retailers,
such as Takko, Deichmann, C&A, NewYorker, Kiabi and Hervis
have kept their expansion plans, although they are more demanding
in selecting locations.
Following the last months of 2008, rental levels started a downward
trend in all the cities of Romania, including Bucharest. The lower
sales densities and rising vacancy rates forced landlords to reduce the
rents and give different types of incentives in order to attract and
maintain tenants.
SHOPPING CENTRES PRIME RENTAL LEVEL* (Euro/sq m/mth.)
Q4
2007
Q4
2008
Q4
2009
Bucharest
85
85
60
Cluj-Napoca
50
50
27
Timisoara
37
37
27
Constanta
37
37
27
Brasov
37
37
23
City
Source: Cushman&Wakefield, April 2010
* for shops of 150 sq m
2010
Trend
RETAIL PARKS
The retail park segment has been ignored for a long time in Romania,
the majority of developers preferring to build shopping centre
schemes in order to achieve higher rates of return and to compensate
for the increasing price of land.
A few retail parks are operational so far, generally these being part of
larger retail projects which also include a shopping centre area. Most
of the projects announced by developers as retail parks are in fact
out-of-town shopping centers anchored by hypermarkets, with one
or two retail warehousing units attached, generally DIY and furniture.
The existing stock of retail parks accounted for, at the end of 2009,
approximately 135,000 sq m, over half of this being delivered in
2008-2009. The main retail parks in Romania are Shopping City Sibiu,
Militari Shopping Center in Bucharest, European Retail Park in Braila
and Vitantis Shopping Center in Bucharest. All of these schemes
include also a shopping centre area represented by a hypermarket
with a shopping gallery in front.
Despite some ambitious plans, the retail park stock delivered in 2009
was half the new supply completed in 2008. The new stock of 27,000
sq m included only extensions of the existing projects, namely Militari
Shopping Center, European Retail Park Braila, Era Shopping Park
Iasi and a small scheme in Buzau.
The largest new surface completed last year was part of Militari
Shopping Center in Bucharest. The existing area that included
Praktiker (DIY) and Domo (electrical goods) was extended with well
know apparel tenants such as Decathlon, C&A, Hervis, Deichmann,
Takko and Kiabi.
Despite the fact that there are few projects to comply with the retail
park definition, the retail warehousing sector has seen a rapid
development in the last years through stand-alone units and units
attached to shopping centre schemes. The largest expansion was
registered by hypermarkets, discounters and DIY.
Retail clusters have been developed on the main exits of the largest
cities. The largest one is located on the A1 motorway entry to
Bucharest, concentrating over 190,000 sq m GLA of retail space
within a distance of 2 km.
MILITARI SHOPPING, BUCHAREST
sq m
ROMANIA RETAIL PARK STOCK - SUPPLY/ YEAR
70,000
60,000
50,000
40,000
30,000
20,000
10,000
0
2003
2006
2007
2008
2009
11
MARKETBEAT
RETAIL WAREHOUSE, AVERAGE RENTAL LEVEL (€/sq m/mth.)
Bucharest
Main Cities
Hypermarket
7-9
6-8
DIY
7-9
6-8
Furniture
7-9
6-7
Unit
Rental levels registered a slight decrease in 2009, secondary cities
being especially affected. Retailers are presently more cautious when
entering new locations, looking to pay lower rents.
A few international operators entered Romania in the last year, the
main names including C&A, Decathlon, Kiabi and Norauto. Despite
the fact that the retail market in Romania is considered to have an
important potential, only Lidl, Leroy Merlin and Go Sport are known
to have certain plans to enter the market in the following months.
EUROPEAN RETAIL PARK TG.MURES
Last year the Romanian market saw the first closing of a hypermarket
unit belonging to an international operator. Carrefour closed its
second hypermarket in Braila due to the very low operation registered
by Armonia Center, the scheme not being able to attract visitors and
to maintain tenants.
The expansion is likely to decline even further in 2010, Kaufland
being the single operator to open more than 1-2 new units.
SUPERMARKETS
The international supermarket operators represented in Romania
continued their development program during 2009, the largest
expansion been registered by Billa (9 new units), Mega Image and
Carrefour Market/Express.
Some important Romanian owned chains such as Fidelio and the
franchise of Spar saw major financial problems during last year,
closing units, entering insolvency and planning to sell the business.
The largest supermarket chains in Romania are internationally
owned: Mega Image (49), Billa (43), Carrefour Express (26) and
Interex (13). It is likely that international retailers will continue their
expansion and will put additional pressure on the local operators,
increasing their market share.
DISCOUNTERS
Food discount was one of the very few retail sectors to register
growth during 2009. The economic crisis has changed the purchasing
habits and customers have oriented towards the low-price and valuefor-money products.
HYPERMARKETS
Hypermarkets reduced by half their expansion in 2009, only 13 units
being opened as compared with 26 in 2008. The largest expansion
was done by Kaufland (6 new units) and Real (4).
Both PIC and Trident, the Romanian owned hypermarket chains,
closed their units in 2009 as a consequence of financial problems, the
market being now disputed only between international operators.
There are 100 hypermarket units in Romania, operated by Kaufland
(44 units), Real (24), Carrefour (22), Auchan (7) and Cora (3).
The size of these stores ranges from the smaller format of 4,5006,000 sq m operated by Kaufland to an average format of 12,00013,000 sq m operated by Carrefour and Real and the largest formats
of 14,000-16,000 sq m by Auchan and Cora.
12
All the players involved in the food discount sectors expanded their
networks rapidly in 2009, with the opening of tens of units each.
Lidl announced in February 2010 that they have purchased the Plus
network in Romania, the largest chain in the country. In addition they
have secured a large number of sites for further development.
The largest networks are represented by Lidl (96 units), Penny Market
(90 units, out of which 6 are large format), Profi (53) and Minimax
(30).
Red Market, the discount format of Mega Image, opened its first unit
in late 2009, the announced target being 200 units.
The discount sector is likely to continue its aggressive development,
none of the operators having reached yet their proposed target of
units. Discounters are targeting mostly all the cities of above 15,000
inhabitants, but in 2009 they entered even cities of 8,000 - 10,000
inhabitants.
DIY
did not open new units in 2009 and do not have any other stores
under construction.
Despite a lower pace of development, 13 new DIY units were
completed in 2009, most of the competitors expanding with at least
one unit. At the end of 2009, the Romanian market reached a total of
95 DIY units, 16% more than 12 months ago.
The market is likely to maintain the same characteristics in 2010,
operators being focused on becoming more efficient and limiting the
sales decline, rather than expanding.
Some of the cities in Romania, such as Pitesti, Suceava and Focsani,
have already reached a relatively large concentration of DIY
elements, with a ratio of 1 unit for less than 50,000 inhabitants.
OUTLET CENTRES
The main competitors are Praktiker (26 units), Dedeman (16),
Ambient (16), Bricostore (14), bauMax (9), Interhome (5), OBI (4),
Hornbach (3) and Mr Bricolage (2).
The national operator Dedeman registered the largest expansion in
2009 with 4 new units opened, becoming the second largest DIY
network in the country, after Praktiker.
The second largest DIY chain in Europe, Leroy Merlin, is announced
to enter the local market in the following period as one of the main
anchors of Colosseum Project in Bucharest.
The outlet centre market in Romania is poorly developed, comprising
a single scheme operational to date, Fashion House in Bucharest,
developed by Belgium company Liebrecht&wooD.
The first phase of Fashion House, with a surface of 16,000 sq m
GLA, was opened at the end of 2008, and is to be extended by
another 4,500 sq m GLA in 2011. The scheme is located in the
Western area of the Capital, on the A1 motorway exit. The outlet
centre has an international tenant-mix that includes well-known
retailers such as Nike, Puma, Adidas, Timberland, Replay, Benetton,
Champion, Mango, Stefanel, Levi's, Ecco etc. The scheme has
registered a promising operation during its first year, results such as
footfall, conversion rate and sales densities registering a positive
evolution. Liebrecht&wooD will develop its second outlet centre
East of Bucharest, on the A2 motorway towards Constanta.
FURNITURE
After years of steady growth, the furniture sector faced a general
drop of sales in 2009, even the best performer IKEA reporting a
turnover decline (-9%). The market downturn was mainly as a result
of the economic uncertainty which discouraged the acquisition of
expensive long-term use assets and was also affected by the fall in
residential sales.
A very limited number of large furniture stores were completed in
2009, retailers preferring to adopt a cautious development program,
while most of the retail schemes announced for delivery were put onhold.
There were no important international retailers entering the local
market in 2009, the market being dominated by the same players as in
2008, including few international names (IKEA, KIKA, JYSK) and
national operators (Mobexpert, Staer, Elvila, Mobilia).
The construction of Mega Designer Outlet, located adjacent to
Fashion House, was stopped in 2009 as a consequence of the poor
leasing success registered. The rest of the projects announced outside
Bucharest have not been started, their development being uncertain.
The main problem facing the development of outlet centres is the
poor existing infrastructure. The lack of motorway infrastructure
narrows the boundaries of the potential catchment areas.
The number of retailers interested to enter outlet projects remains
limited due to the fact that the famous international brands have not
yet reached a sufficient number of stores opened on the Romanian
market.
FASHION HOUSE, BUCHAREST
The largest surface national network remained that of Mobexpert,
despite the fact that the Romanian operator opened only a single
superstore last year. The unit, with a surface of 7,000 sq m, is located
in Iasi City, as part of Era Shopping Park.
Staer was the most aggressive furniture retailer in 2009, opening 4
large stores as part of major retail schemes. The units have areas of
4,000 - 6,000 sq m and are located in Braila, Brasov, Bacau and
Tg.Mures.
Despite their ambitious development programme, the largest
international operators represented in Romania, IKEA and KIKA,
13
MARKETBEAT
HIGH STREET
The economic crisis, which began in the last few months of 2008 and
continued throughout 2009, has severely affected the high street retail
market as consumer demand has fallen away. Occupier demand has
reduced significantly, resulting in the decrease of the average rental
levels and the increase of the vacancy rates.
The largest drop was recorded in Bucharest, on Magheru Boulevard
where the average rents fell from 150 Euro/sq m/month in Q3 2008
down to 75 Euro/sq m/month at the end of 2009.
Among the CEE capitals, Bucharest registered the largest correction
in rents and was the most affected city in 2009.
The main retail networks that expanded rapidly between 2004 and
2008 have put a stop to their expansion plans and even closed some
of their units that were not performing as expected.
In 2009, Magheru Boulevard was ranked as the world's 40th most
expensive high street location, according to the Main Streets Across
The World 2009 Report prepared by Cushman & Wakefield,
dropping 14 positions compared with the previous year.
Banks, the main players on the high street market, have generated the
largest part of market activity over the past few years, however, they
too stopped their expansion plans during 2009.
CEE CAPITALS HIGH STREET RENTAL LEVEL (€/sq m/mth.)
Q4
2006
Q4
2007
Q4
2008
Q4
2009
Bucharest, Magheru Blvd.
110
120
130
75
Prague, Na Prikope
167
175
180
165
Budapest,Vaci Utca
120
120
120
100
Warsaw, Chmielna
75
80
85
83
Bratislava, Downtown
68
75
80
50
Location
Existing tenants have, in many cases, successfully renegotiated lease
terms in search of decreasing the rents they paid, adding more
pressure on the average rental levels seen on the market. In general,
the discounts obtained by tenants were in the range of 15-20%,
applied for periods of 6-24 months.
During 2009, average rental levels decreased by 20-45%, depending
on the city and micro location. Compared with the peak reached in
Q3 2008, the rental drop is even larger with an average contraction of
30-50% for all the main cities.
ROMANIA HIGH STREET RENTAL LEVEL (€/sq m/mth.)
Q4
2006
Q4
2007
Q4
2008
Q4
2009
110
120
130
75
Cluj-Napoca
60
65
75
40
Iasi
40
45
50
35
Timisoara
40
45
45
35
Constanta
40
45
55
40
Location
Bucharest (Magheru Blvd.)
Trend
2010
Trend
2010
The most developed high street area is located in the central area of
Bucharest, along Magheru Boulevard and Calea Victoriei. Other
cities with a more developed high street include Cluj-Napoca, Brasov,
Sibiu and Oradea.
The high street market in Romania continues to be characterized by a
low level of development and few proper locations. The high street
area is dominated by the service and financial sectors as a
consequence of the aggressive expansion of the banks, pharmacies,
mobile phone dealers and casinos over the last few years. The fashion
sector, the true essence of the high street retail, capable of creating
footfall is poorly represented.
CALEA VICTORIEI, BUCHAREST
The market lacks large surface units, of over 400 sq m, targeted by the
main fashion brands that could anchor the high street area and
improve the general merchandise mix. In order to satisfy the demand
from the main players and maximize turnover, many landlords have
divided the larger units into smaller shops with average surfaces of
50-150 sq m.
In addition, a large part of the existing old city centres must be
refurbished in order to attract retailers and customers, a possible
solution being the redevelopment of parts of the city centres in
partnerships with international experienced developers.
Bucharest continues to lack a proper pedestrian high street area with
optimal access that meets the demands of international retailers. The
historical city centre has started to be redeveloped, and a large
number of coffee shops and restaurants were opened in 2009
attracting an increasing number of visitors, despite the never-ending
rehabilitation works.
14
ROMANIA I OFFICE MARKET I SPRING 2010
OFFICE MARKET
The office market in Romania is mainly concentrated in Bucharest,
and most major international and domestic companies have their
headquarters located here. In addition to Bucharest, the office market
is more developed in a few other major cities including Cluj-Napoca,
Timisoara, Brasov and Iasi. Across the rest of Romania, including
some of the highly populated cities and regions, the office market is
underdeveloped and is characterized by limited modern stock and
low demand.
Market indicators worsened during 2009 in Bucharest; the delivery of
a large number of new projects, coupled with a fall in demand
resulted in decreased rents and take-up and increasing vacancy levels.
OFFICE STOCK IN CEE CAPITALS, END 2009
GLA (sq m)
Warsaw
3,248,197
1,913
7%
Prague
2,691,036
2,159
12%
Budapest
2,400,559
1,416
22%
Bucharest
1,486,300
765
17%
Almost half of the new stock completed last year is located in the
Dimitrie Pompeiu - Pipera area. Some of the major buildings
completed here include Upground II (54,000 sq m), Global City
(45,000 sq m), Cubic Center (27,000 sq m) and the extension of Novo
Park (20,000). This area has seen the highest volume of office
development over the last years in Bucharest, despite the insufficient
transport infrastructure.
Take-up volume, including both new leases and renewals, accounted
for a total surface of 168,000 sq m GLA, 16% lower than in 2008 and
47% lower than the peak of 2007 (320,000 sq m).
Vacancy
Bratislava
1,403,369
3,273
12%
OFFICE TAKE-UP IN CEE CAPITALS
The large development program started over the last few years in
Bucharest resulted in the completion, of a record-high, of 420,400 sq
m of new office space, corresponding to a massive 238% growth
year-on-year. Approximately 75% of this new stock is represented by
A-class buildings.
2007
2008
2009
600,000
500,000
400,000
sq m
At the end of 2009 the total modern office space in Bucharest
reached 1.48 million sq m GLA, representing a 39.4% growth yearon-year. The supply corresponds to a density of 765 sq m
GLA/1,000 inhabitants, which is significantly lower compared to
other CEE capitals such as Prague (2,159), Warsaw (1,913) and
Budapest (1,416).
GLA/1,000
population (sq m)
City
300,000
200,000
100,000
0
Bucharest
Prague
Budapest
Warsaw
Bratislava
MAJOR COMPLETIONS IN BUCHAREST, 2009
Project
GLA (sq m)
Area
Developer
Upground II
Pompeiu
Upground
57,000
Global City
Pipera
Global Finance
45,000
City Gate
North
GTC
44,000
Floreasca Plaza
Vacarescu
Portland Trust
34,200
Cubic Center
Pipera
Expert RoInvest
27,000
Novo Park (extension)
Pompeiu
Prefabricate Vest
20,000
The majority of the leasing deals were concluded in the second half
of 2009, the first half of the year was characterised by low activity on
the market. Take-up volume continued to be lower than in Budapest
(294,415 sq m), Warsaw (280,164) and Prague (245,304), where the
activity was also affected by the crisis.
SWAN PARK, BUCHAREST
Central locations continue to be preferred by most companies as a
consequence of the proximity with other business elements,
improved accessibility and for the company's image, while northern
areas are generally preferred by large surface tenants and back-office
facilities.
The decreasing demand and the high volume of new stock completed
contributed to the rapid growth in vacancy rates from only 2.3% in
2008 to 17% at the end of 2009. The largest part of the unoccupied
surface was provided by the new projects finalized last year in Pipera,
many unable to secure tenants.
15
MARKETBEAT
In 2009 the average rental level decreased across Romania. In
Bucharest average rents for central locations decreased by 7.1%, from
21 Euro/sq m/mth. in 2008 to 19.5 Euro/sq m/mth. at the end of
2009. This is below the rents of Warsaw (22), Budapest (22) and
Prague (21), but above Bratislava (17), where the office density is the
highest in CEE.
The largest downward pressure on rents was for the decentralized
locations in Bucharest where the average rent reached 12 Euro/sq
m/mth. at the end of 2009, a decrease of 20% year-on-year.
In the secondary cities, with modern office space, rents decreased
from 14-15 Euro/sq m/mth. to approximately 11-12 Euro/sq
m/month.
OFFICE RENTAL LEVEL (€/sq m/mth.)
Location
2006
2007
2008
2009
Bucharest, central area
20
21
21
19.5
Bucharest, decentralized
14
15
15
12
Other cities
15
15
15
11
2010 Trend
Convention Center (55,000 sq m) and Swan Park (46,900 sq m) are
placed in northern Bucharest, namely on DN1 and Pipera.
MAJOR PROJECTS FOR COMPLETION IN 2010 IN BUCHAREST
Project
Area
GLA (sq m)
Platinum Business&Convention Center
North
55,000
Swan Park
Pipera
46,900
LakeView
Vacarescu
24,000
Nusco Tower
Vacarescu
20,700
Cathedral Plaza
Central
20,000
Euro Tower
Vacarescu
18,000
Crystal Tower
Central
16,000
Castrum
Central
14,500
Sun Plaza
South
10,000
CITY BUSINESS CENTER, TIMISOARA
CBD OFFICE RENTS IN CEE CAPITALS (€/sq m/mth.)
City
End 2007
End 2008
End 2009
Bucharest
21
21
19.5
Prague
20
23
21
Warsaw
30
29
22
Budapest
21
22
22
Bratislava
20
18
17
The economic crisis has put a stop to the development program of
office space in Bucharest. No new projects have begun since the end
of 2008, only those already under construction have been continued.
Developers are confronted with market uncertainty, a decline in rents,
limited demand and tough conditions for securing loans for
development.
The new stock to be completed in 2010 in Bucharest is estimated at
approximately 260,000 sq m, out of which 39,000 sq m (15%) was
delivered during the first three months of the year.
These projects were started before the crisis and have continued
despite the worsening market environment. The largest new surface
to be delivered is located on Barbu Vacarescu Boulevard, where the
three major projects close to completion (LakeView, Euro Tower,
Nusco Tower) account for 62,700 sq m GLA.
Three important projects with a total surface of 50,500 sq m have
been announced for delivery in the central area of the city.
The largest projects to be completed in 2010, Platinum Business &
16
FORECAST
The current market difficulties are likely to change the market
environment and the market will mature in the coming years. While in
the past, almost all projects have found success, this has been as a
consequence of the insufficient supply. Now the market has become
much more demanding.
Only projects with an optimal location, good accessibility, a good
concept and acceptable rental levels are likely to succeed. The
marketability of projects located in the periphery, in areas such as
Pipera, will improve when the accessibility problems are resolved.
In 2010 the rental level in Bucharest may register further decreases,
especially in decentralized locations, as a consequence of the
increasing volume of available space. The demand is likely to show
signs of improvement, with good figures seen in the first three
months.
ROMANIA I OFFICE MARKET I SPRING 2010
BUCHAREST OFFICE MAP, MAIN DEVELOPMENTS
Existing
Under Construction
39
Projects
56
76
54
70
6
5
29
36
69
49
33
52 19 84
87 79
42
12
16
24 68
59 86
74
7
18 67
22
38
40 71
41
75 72
32
26
25
89
58
2 11
57 9 8 23
43 81
17
13 15 82
62
61
28
90
35
63
1
47
65
64 45
53
66
44
85
27
83
4
80
55
48
34
50
21
10
73
37
31
14
88
3
60
46
30
77
51
® Copyright AGC BUSMAN SRL
1. Anchor Plaza
2. America House
3. Platinum Center
4. Avrig 3-5
5. Baneasa BC
6. Baneasa Airport Tower
7. World Trade Center
8. Premium Point
9. Piraeus Bank
10. Maria Rosetti Tower
11. BRD Tower
12. Bucharest Business Park
13. Bucharest Corporate Center
14. Bucharest Financial Plaza
15. Art BC
16. Nusco Tower
17. Cascade OB
18. Charles De Gaulle Plaza
19. Conect I+II+III
20. Construdava
21. Dacia OB
22. Dorobanti 239
23. Europe House
24. Oracle Tower
25. Floreasca BC
26. Banu Antonache BC
27. Forum I+II+III
28. Global BC
29. Grivco Tower
30. Helios BC
31. IBC Modern
32. Eliade BC
33. Iride Business Park
34. Marriott Grand OB
35. Cotroceni BC
36. Metav Business Park
37. Millenium BC
38. Neocity I+II
39. Platinum B&C Center
40. North Center
41. North Gate OB
42. Novo Park
43. Crystal Tower
44. Opera Center
45. Palazzo Italia
46. PGV Tower
47. Anchor Plaza Metropol
48. Orhideea Towers
49. S Park
50. Tati Center
51. Sun Plaza
52. Pipera Business Tower
53. Union I
54. Victoria Park
55. Dacia 121
56. Baneasa B&T Park
57. Premium Plaza
58. Bucharest Tower Center
59. Floreasca Plaza
60. City BC
61. Riverside OB
62. Sema Parc
63. West Gate
64. Excelsior
65. Cathedral Plaza
66. Arena Plaza
67. Neocity III
68. Sky Tower
69. Twin Towers
70. Cubic Center
71. Global City
72. Pipera City
73. UTI BC
74. City Gate
75. Swan Office Park
76. Meteo BC
77. Martifer
78. Euro Tower
79. Multigalaxy
80. Avrig 7
81. Metropolis
82. Victoria Center
83. Cotroceni Park BC
84. Extensa
85. Izvor 80
86. Lake View
87. Upground
88. Olimpia Tower
89. EuroTower
90. Pumac
17
MARKETBEAT
INDUSTRIAL MARKET
Market activity slowed down in 2009, and the main indicators showed
a significant drop in comparison to the good results seen in 20072008.
BUCHAREST KEY INDUSTRIAL DATA
Annual Supply
sq m
Until 2007 the market was dominated by built-to-suit developments,
many of which had poor characteristics and there was a low volume
of transactional activity. However, throughout 2007 and 2008 the
development of speculative logistics projects by international
developers resulted in a rapid expansion of the industrial market.
International developers targeted the Bucharest area first, but have
since expanded into other important areas such as Timisoara, Arad,
Brasov, Ploiesti, Cluj-Turda, Oradea and Constanta.
Stock
Vacancy rate
700,000
21%
600,000
18%
500,000
15%
400,000
12%
300,000
9%
200,000
6%
100,000
3%
0%
0
The new supply delivered in Bucharest in 2009 (excluding the
projects developed for owner occupation) reached only 20,750 sq m,
corresponding to a 90% drop from the record-high volume in 2008.
The total stock of speculative logistics space in Bucharest was, at the
end of 2009, approximately 678,250 sq m. This level is significantly
lower than in the rest of the CEE capitals, namely Warsaw (2.4 million
sq m), Prague (1.5 million sq m), Budapest (1.4 million sq m) and
Bratislava (1.1 million sq m).
2008
2007
2008
2009
The prime average rental level remained at approximately 4 Euro/sq
m/month in Bucharest during 2009. For the projects developed by
international developers outside the capital, the rents decreased by
5.5% to an average level of 4.25 Euro/sq m/month. These levels are
likely to remain stable in 2010.
CEE CAPITALS LOGISTICS RENTS - YEAR END (Euro/sq m/mth.)
TOTAL LOGISTICS STOCK IN CEE CAPITALS
2007
2006
2009
2,500,000
2,000,000
sq m
1,500,000
1,000,000
City
2008
2009
Bucharest
4.00
4.00
Warsaw
4.50
5.25
Prague
4.00
3.50
Budapest
4.20
3.75
Bratislava
3.50
3.50
Trend 2010
500,000
ROMANIA, LOGISTICS RENTS - YEAR END (Euro/sq m/mth.)
0
Bucharest
Prague
Budapest
Warsaw
Bratislava
Take-up in Bucharest, excluding owner occupied spaces, decreased
by 67% year-on-year to a volume of approximately 53,000 sq m. Most
of the transactions were concentrated west of Bucharest, along the
A1 motorway. The capital represented over 70% of the take-up
volume in Romania.
TOP 5 LOGISTICS LEASING DEALS IN 2009
Tenant
Project
City
Unilever
Ploiesti West Park
Ploiesti
30,400
Antalis
Bucharest West
Bucharest
10,000
Domo
Equest Logistic Center
Bucharest
8,800
Omega Logistic
ProLogis A1
Bucharest
6,600
Tornado Systems
Atlas Project
Bucharest
5,000
18
Area (sq m)
City
2007
2008
2009
Bucharest
4.00
4.00
4.00
Main Cities
4.00
4.50
4.25
Some major projects were started in 2009, which will be developed in
many phases according to the registered demand. These projects
include Olympian Park Timisoara, Millennium Logistics Bucharest
and Ploiesti West.
Approximately 80,000 sq m of new supply has been announced for
delivery in 2009. The actual amount delivered will be influenced by
the demand evolution.
In the first few months of 2010 there has been an increasing demand
for light industrial and storage space, the demand coming mainly
from international companies active in the automotive and
electronics sectors.
ROMANIA I INDUSTRIAL MARKET I SPRING 2010
INDUSTRIAL & LOGISTICS
BUCHAREST LOGISTICS MAP
Crevedia
2
E60
DN7
Proposed
Ring Road
International
Airport
Otopeni
1
A3
Afumati
Existing
Ring Road
1
E60
Voluntari
Dudu
4
9
4
15
Chiajna
14
A1
6
3
7
Ciorogarla
11
10
13
Pantelimon
8
5
12
Domnesti
3
5
A2
Popesti-Leordeni
2
6
Darasti
E70
Main Existing Developments
Main Projects
1 Karl Heinz Dietrech
7
13 Bucharest West Industrial Park
1 Bucharest Distribution Park
2 Crevedia Logistic Park
8 Faur Industrial Park
14 Prologis Logistic Park
2 Millennium Logistic Park
3 Chemp Alpha DC
9 Chitila Logistic Park
15 Mercury Logistic Park
3 WDP Fundulea
4 NordEst Logistic Park
10 Otter Logistic Park
4 Bucharest Industrial Park
5 Apollo Logistic Park
11 Key Logistic Center
5 Olympian Park Chiajna
6 Mobexpert Logistic Centre
12 Europolis Logistic Park
6 Catalunya Industrial Park
A1 Business Park
Source: Cushman & Wakefield, May 2010
19
MARKETBEAT
RESIDENTIAL
The residential market is considered the real-estate sector with the
largest potential of development in the medium to long term in
Romania. The existing stock of dwellings in the urban area is mainly
represented by blocks of flats built during the communist regime,
providing a low quality of construction and efficiency, small usable
areas and a lack of parking spaces.
During the period between 2004 – 2007, the market saw an
accelerated development program and a large number of projects
were announced. The steady economic growth, rising purchasing
power and accessibility to finance increased the demand for both old
and new residential units. The limited modern stock delivered after
1990 and the market potential attracted a high number of developers
into the market, both foreign and domestic.
Almost all the projects launched during this period registered
successful sales, anticipating a large market potential, while the prices
saw two digit annual growth rates. A large part of the sales were
bought by international investors, either private persons or funds,
that bought large portfolios for speculative reasons.
The second program, named “First House”, was addressed to the
people buying their first dwelling. People are encouraged to take loans
with the maximum value of Euro 60,000 at a lower interest rate than
the market average and with the payment of only Euro 3,000 as
advance. These loans are guaranteed by the Romanian state.
After the crisis started in the middle of 2008, no new projects were
started and a large percentage of those in the pipeline were put on
hold. The annual new stock delivered in Romania rose between 2006
and 2008, the volume in 2008 was double that in 2005. Last year a
slight decrease of 5.2% was registered in the number of new
dwellings completed.
In Bucharest the new stock of apartments delivered as part of major
projects remained at only 2,000-2,500 units per year in 2007 and 2008.
Despite the low number of sales, a relatively large number of projects
started in 2007/2008 saw completion during 2009 in Bucharest, and a
record-high of approximately 7,200 new apartments were delivered
onto the market.
NUMBER OF DWELLINGS COMPLETED
The number of projects announced between 2006 and H1 2008
rocketed in all the largest cities of Romania, especially in those with a
population of over 150,000. Over 100,000 planned residential units
were announced for Bucharest and in between 5,000 and 12,000 units
for each of the largest secondary markets such as Cluj-Napoca,
Timisoara, Ploiesti, Brasov and Iasi.
The residential market was the first real estate sector in Romania to be
affected by the financial crisis. The first signs were visible at the start
of 2008 when demand for older residential apartments fell and as the
year progressed this decreasing demand spread to all sectors of the
residential market. Prices saw dramatic corrections, the number of
sales plummeted and the entire market became blocked in the last few
months of 2008.
In 2009 the market saw a low activity level despite the fact that the
Romanian state launched programs in order to restart demand.
International investors, either private investors or investment funds,
stopped new acquisitions and even renounced some of the forwardpurchase agreements signed previously.
Romanians have also stopped their plans of buying residential units
as the economic environment worsened, unemployment rates
increased and mortgage conditions deteriorated significantly. In
addition there was a general attitude of expecting further decreases in
the price level.
Two programs were launched by the state during 2009, but their
effects were relatively limited and only affected the market for old
apartments.
The first decision was to reduce the VAT to 5% for the acquisition of
a single dwelling with a value of less than ~90,000 Euro and with a
maximum usable surface of 120 sq m, limited to one per person.
20
Year
Units
Completed
Urban
Share
Rural
Share
Private
Financing
Public
Financing
2005
32,868
47%
53%
83%
17%
2006
38,878
47%
53%
88%
12%
2007
47,299
50%
50%
91%
9%
2008
64,416
48%
52%
93%
7%
2009
61,101
50%
50%
91%
9%
From 2003/2004, the price levels for both old and new properties
started to increase, and registered annual growth rates of 25-35% (in
some cases even higher). The peak was achieved in the first half of
2008, average prices for semi-central locations in Bucharest reaching
approximately 1,900 Euro/built sq m in Bucharest.
The drop in sales have resulted in a significant decrease in average
prices. Over the course of 24 months, since the beginning of the
crisis. the prices of new apartments located in semi-central Bucharest
have decreased by over 35%, reaching 1,200 Euro/built sq m. For the
projects in peripheral locations the prices range between
approximately 750-1,000 Euro/built sq m.
AVERAGE PRICE OF NEW APARTMENTS (€/built sq m)
City
Bucharest - semi-central
Mid 2007
Mid 2008
Mid 2009
May 2010
1,600
1,900
1,500
1,200
Source: Cushman & Wakefield, May 2010
Despite the reduction, sales have not yet picked up as the market
expectancy is that values will keep dropping, mortgage conditions are
oppressive and the economic climate discourages people from
making investments in long-term assets.
ROMANIA I INVESTMENT MARKET I SPRING 2010
INVESTMENT MARKET
The first major transactions in Romania began in 2003, but the real
boom started in 2006, when the total volume exceeded 1 billion Euro
for the first time. In less than five years prime office yields in
Bucharest dropped from 12.5% to 6.25%. The record yield was the
transaction of America House, in 2007, where the initial yield was
5.55%. Transactional volume reached the highest level in 2007 at
Euro 1.9 billion. As happened across the world, the volume of
transactions reduced considerably in 2008.
In 2008 the volume dropped to approximately 50% of the
transactional volume of the peak in 2007, registering a total of 969
million Euro. In reality, for most of the transactions signed in 2008
the negotiations were started in 2007 when the environment was very
different and investors were still active.
In 2009 the investment market in Romania remained blocked,
registering a very low level of activity. The international investors
who were active previously paused their acquisition program on the
Romanian market. Only 129 million Euro of transactions were
recorded in the entire year, corresponding to a massive decrease of
86.7% year-on-year, while it represents only 6.8% of the record
volume registered in 2007.
INVESTMENT VOLUMES IN ROMANIA - SECTOR BREAKDOWN
Retail
Office
Industrial
Other*
2,000
PRIME YIELDS - YEAR END
2005
2006
2007
2008
2009
8.50%
8.75%
7.25%
7.75%
6.25%
6.75%
7.50%
8.50%
9.00%
10.00%
8.50%
n/a
7.50%
8.25%
6.25%
7.50%
7.50%
8.75%
9.00%
11.00%
10%
10%
8.50%
9.00%
7.50%
7.75%
8.50%
8.75%
9.50%
10.50%
Shopping Centres
Bucharest
Other Cities
Office
Bucharest
Other Cities
Industrial / Logistics
Bucharest
Other Cities
PRIME SHOPPING CENTRE YIELDS IN CEE CAPITALS
Bucharest
Budapest
Prague
Warsaw
9%
8%
7%
6%
5%
4%
3%
2%
1%
0%
2005
2006
2007
2008
2009
million Euro
1,500
1,000
FORECAST
500
0
2003
2004
2005
2006
2007
2008
2009
* Other: Hotel and Residential
The largest transaction signed in 2009 was the acquisition of
European Retail Park in Braila. The scheme, delivered in 2007-2008,
has a letting area of approximately 44,400 sq m, and is anchored by
Carrefour, Bricostore, Staer, Media Galaxy, New Yorker and Hervis.
The scheme was sold for Euro 63 million by the Belgium developer
Belrom to New Europe Property Investments, in a deal that involved
also Belrom becoming a shareholder of NEPI.
In 2009, prime yields in Romania continued to soften by another 150
basis points in all real estate sectors, both for Bucharest and the rest
of the country. Given the lack of transactional data and fast moving
pace of market sentiment and, indeed, borrowing costs, the year end
yield figures are a broad estimation only and do not relate to any
specific asset or transaction.
Compared with the rest of the capitals in the CEE region, such as
Warsaw, Prague and Budapest, the prime yields in Bucharest are
generally 150 basis points higher, reflecting investors' sentiment
regarding the country risk, performance and quality of projects
available on sale.
There has been no significant change on the local market in the first
three months of 2010. The single, most important, transaction was
the acquisition of Auchan and Bricostore units, part of Iris Shopping
Center in Pitesti, by NEPI.
There are no signs that the investment market will recover in the short
term. It is likely that a few number of transactions will take place in
the following months, involving small properties of less than 50
million Euro.
The limited number of international and domestic investors targeting
Romania at present are opportunistic, in search of distressed
properties, mainly in Bucharest and the largest cities of the country.
The major international investors are likely to be attracted by prime
properties put on sale on mature markets in Western Europe at 6-8%
yields. These investors are unlikely to return to Romania until the
market is stabilized and growth returns.
Romania is generally considered to have an important potential for
development in the medium to long term in different sectors of the
real-estate market, and it is likely that the market size and
opportunities will attract significant inflow of capital after the crisis.
21
MARKETBEAT
VALUATION SERVICES
Cushman & Wakefield is one of the largest real estate valuation
organisations in the world. We are the foremost valuation advisor to
leading investors and public and private companies, as well as banks,
REITs, institutional funds and insurance companies. We provide
customised services and solutions in accordance with each clients'
needs. Our valuations are based on national, European and
international standards (including the International Valuation
Standards, the RICS Red Book, ANEVAR and TEGOVA). Our
Romanian team includes both RICS qualified Chartered Surveyors
and locally trained ANEVAR member professionals, enabling us to
deliver to international standards and expectations, whilst fully
understanding local language issues and statutory considerations.
The past eighteen months have seen property values in Romania fall
significantly across all sectors, as the country has been affected by the
economic crisis. In some cases, values have fallen more than 50%
from their peak. During such times, it is essential that lenders,
investors and occupiers obtain the best possible advice on their assets
to inform their decision making. Throughout this difficult period,
Cushman & Wakefield has continued to provide professional advice
to our clients. As the graph below shows, in 2009, we advised on a
large number of retail and land assets, two of the sectors which have
been particularly affected by the crisis.
C&W ROMANIA WEB SITES
www.offices-for-rent.ro
www.offices-for-rent.ro was released in June 2010 in
order to facilitate easy and rapid support for our clients
to different subjects related to the local office market.
The site includes a selection of office properties
available for rent in Bucharest and in the largest cities
throughout Romania. In addition, the market analysis
section provides our clients with the latest office market
reports and statistics.
VALUATION BY SECTOR (% OF AGGREGATE MARKET VALUES), 2009
Retail
Industrial
Hospitality & Leisure
Land
Residential, Portfolios & Others
Office
www.industrial-romania.ro
6%
7%
32%
13%
17%
25%
We have the largest Valuation Advisory Services team in the region,
ensuring we have the manpower to complete projects professionally
and on time, and also ensuring continuity for future valuations. We
have access to the largest brokerage teams active in the region, who
cover all the main sectors. This ensures we have the most up to date
market knowledge.
Our services include: valuations for loan security; portfolio
valuations; valuations for acquisitions or sales; leasehold valuations;
annual or quarterly valuation updates; valuations for accounts
purposes; valuations for development projects; market studies;
comparable research.
22
www.industrial-romania.ro is, starting with the end of
2009, our web support for the corporate clients
activating in the industrial and logistics sector.
The site provides a wide selection of properties located
as part of the most important industrial areas and
logistics hubs in Romania. A dedicated section of
market analysis is provided, including the main statistics,
reports and trends seen in the local industry.
CUSHMAN & WAKEFIELD
D
in
ic
u
H
Bl
vd
.
HILTON
itu
Sch
H
INTERCONTINENTAL
National
Theatre
University
.
lvd
National
Opera
Cismigiu
Garden
lvd.
B
ele
gur
Ma
It offers a complete range of services
within four primar y disciplines:
Transaction Services, including tenant
and landlord representation in office,
industrial and retail real estate; Capital
Markets, including property sales,
investment management, valuation
services, investment banking, debt and
equity financing; Client Solutions,
including integrated real estate strategies
for large corporations and property
owners, and Consulting Services,
including business and real estate
consulting.
Ple
vn
ei
B
scu
alce
d.. B
lvN
REVOLUTIEI
SQUARE
et
Stre
zei
[email protected]
RAILWAY
STATION
ol
es
cu
Ber
Ca
lea
UNIVERSITATII
SQUARE
ROSETTI
SQUARE
M
Regina Elisabeta Blvd.
M
Dambovita Riv
er
M
Izvor Park
Natiunile Unite Blvd
.
Cotroceni
Stadium
CONSTITUTIEI
SQUARE
Partner Managing Director
Razvan Gheorghe
G
dr.u B
ghlve
ruaB
heM
Mag
Cushman & Wakefield is the world's largest privately held commercial
real estate services firm. Founded in 1917, it has 230 offices in 58
countries and more than 15,000 employees. The firm represents a
diverse customer base ranging from small businesses to Fortune 500
companies.
The House of
Parliament
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Unirii Blvd.
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MARRIOTT
Calea 13 Septem
brie
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vd
CONTACTS
Capital Markets
Costel Florea
Shopping Centres
Andrei Birsan
Shopping Centres
Cristina Dumitrache
Shopping Centres
Felicia Vasiu
High Street
Valentin Manu
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
Asset Management
Silviu Ionici
Office
Florin Sorea
Valuation
Andrew Pirie
Industrial
Gabriel Sfetcu
Marketing
Doinita Costache
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
For further information or additional copies
of this or other reports, please contact:
Doinita Costache, Marketing Manager
[email protected]
Cushman & Wakefield
Opera Center, 2 Dr.Nicolae Staicovici Street
4th Floor, Sector 5, Bucharest, Romania
Tel.: +40 21 408 03 00
Fax: +40 21 408 03 01
www.cushmanwakefield.com
This document contains general information and it has been used by Cushman & Wakefield on the
assumption that it is correct and accurate. Cushman & Wakefield declines all responsibility if this is
not the case. No warranty or representation, express or implied, is made as to the accuracy of the
information contained herein, and same is submitted subject to errors, omissions, change of price,
rental, or other conditions, and withdrawal without notice or at the request of our clients.
For industry-leading intelligence to support your real estate and business decisions, go to
Cushman & Wakefield’s Knowledge Center at cushmanwakefield.com/knowledge
© 2010 Cushman & Wakefield. All rights reserved.
© 2010 Cushman & Wakefield. All rights reserved
www.cushmanwakefield.com

Romania Marketbeat Spring 2010.cdr

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