More offices but retail space supply to fall this year in Romania

It's a good time to make real estate investments in Romania, according to a new report from consultancy firm Jones Lang LaSalle. The report suggests that there is limited investor competition at the moment and that there is an opportunity to acquire proven, successful projects. But before making a decision, the report advises product scrutiny and consideration of deal structuring. In the office market, a big increase in supply is predicted for 2013, from a total annual office supply of only 49,000 sqm in 2012 to 130,000 – 150,000 sqm this year, with some 50,000 sqm pre-leased. Leasing activity is also forecast to increase this year. The hypermarket operators dominated the retail space market towards the end of last year. Limited supply resulted in the big firms, like Auchan, Cora, Kaufland and Carrefour, developing their own projects anchored by their hypermarkets. A further decline in supply is expected in 2013, from around 166,000 sqm in 2012 to 132,000 sqm this year. In the industrial sector, Bucharest continues to dominate, but recent transactions show that other centers – Ploiesti, Timisoara, Cluj and Constanta – are emerging as tier 2 industrial hubs. The big plus for development of industrial space in Romania is its “excellent strategic geographical location in Europe, direct access to the Black Sea, and being well served by river transport, with the Danube River crossing almost the entire southern border of the country.” The big minus is the lack of highway infrastructure, according to Jones Lang LaSalle. Jones Lang LaSalle is a financial and professional services firm specializing in real estate services and investment management. The company has some 30,000 employees in 750 cities in 60 countries. editor@romania-insider.com (photo source: sxc.hu)