The report CBRE Market Snapshot Q3 shows that an important trend in the first three quarters of 2020 is the evolution of retail to omnichannel. On the one hand, retailers focus on the network of physical stores, where CBRE works intensively on portfolio optimization and on the other hand invest new resources to benefit from the increase in online sales, expanding its logistics capabilities.
"The evolution of retail to omnichannel generates an increased need for logistics space, fueled by the lack of predictability in the face of possible restrictions from the authorities at a key moment for retail. The fourth quarter, through Black Friday, Santa Claus and Christmas, generates over 30% of total online retail sales and the expansion of logistics spaces influences the shopping experience and implicitly retail sales", said Carmen Ravon, Head of Retail and Land, Omnichannel Real Estate Solutions, within CBRE Romania.
CBRE recently launched in Romania a range of omnichannel services for retailers that want a rapid adaptation to the new market context by expanding industrial spaces. The new range of services integrates the solutions already offered to retailers (land acquisitions, leasing, portfolio optimization, mergers and acquisitions and property management) and facilitates their access to typical solutions for the industrial sector.
The modern retail stock in Romania was estimated at the end of the third quarter at 3.84 million sq m, after 90,000 sq m were delivered in the first nine months once the projects Dâmbovița Mall and Shopping City Târgu Mureș, NEST Miercurea Ciuc and NEST Oradea were completed. In the fourth quarter, another 82,000 sq m will be delivered in the cities of Alba Iulia, Baia Mare, Brașov, Slobozia, Sibiu and Timișoara, by opening new projects or expanding existing ones, thus heading towards the threshold of 4 million sq m, shows CBRE Research data.
"The projects delivered in 2020 were initiated in 2019 or even earlier. Investors continue to be cautious about the development of large projects and we rather notice an appetite for small and medium-sized projects, especially retail parks. Such projects, such as the retail park developed by Synergy in the Pipera-Voluntari area, could become the engine of the market next year", added Carmen Ravon.
Over 600,000 sqm of industrial spaces traded in the first nine months
In the first three quarters, a total area of 612,000 sq m of industrial space was traded in Romania, increasing by 70% compared to the average of the similar period of the last three years, according to CBRE Research data.
"Retail as a share in total industrial transactions doubled compared to 2015, an obvious increase if we add the courier and logistics services. Almost half of the total transactions with industrial spaces in the first nine months were generated by retail companies, respectively over 300,000 sqm. Although we see more and more transactions in the non-food area, we still expect large transactions from FMCG companies in different areas of the country", said Andrei Jerca, Head of Industrial Services, CBRE Romania.
The average area traded on the industrial market increased in 2020 to over 8,000 sqm, confirming the interest of tenants for XXL warehouses and outlining the next step to streamline and secure timely deliveries of goods: last mile logistics and incity logistics, according to CBRE.
The stock of industrial spaces will exceed the 5 million sqm mark in 2020
The growing volume of rental transactions has fueled the momentum of developments in new industrial projects. The stock of industrial spaces in Romania reached 4.84 million sq m at the end of the third quarter, after 389,000 sq m were delivered in the first nine months. Approximately 260,000 sqm are to be completed in the fourth quarter, so that by the end of the year, the stock of industrial spaces will exceed the 5 million sqm mark, according to CBRE Research data. Compared to the population of Romania, this volume represents an industrial stock of 260 sq m per thousand inhabitants, below the level in the region (347 sq m per thousand inhabitants in Hungary or 510 sq m per thousand inhabitants in Poland), with the potential for further growth. Another 250,000 sqm of industrial space is under construction and is to be delivered in the first three quarters of 2021.
"Almost half of the total existing stock is concentrated in Bucharest, but if we analyze the projects under construction, we notice a high interest for the west and north of the country. Over 70% of new projects are in these areas, which developers such as CTP, WDP, Element Development and Global Vision have bet by expanding their portfolios. The center of the country is also becoming attractive and we notice new developments from VGP", added Andrei Jerca. (source: CBRE)
