The recovery of Romania’s real estate market after the economic slowdown induced by the coronavirus pandemic will be marked by the consumers’ higher propensity for online shopping, the local office of global real estate consultancy firm Colliers International argues in a report.
This would generate opportunities for some industries, including segments of the real estate market - such as stronger demand for logistic facilities required by e-commerce.
“Therefore, the infrastructure needed for online stores should grow and, implicitly, warehouses needed to supply the online orders will also have to gain,” says Laurentiu Duica, Partner & Head of Industrial Agency at Colliers International.
As for the tenants, particularly those non-essential stores that had to close as an effect of the state of emergency, Colliers recommend to “secure suitable stock for the end-user demand, take very serious hygienic measures and continue omnichannel marketing”.
Colliers imagines even more revolutionary strategies. “Retail landlords are expected to establish e-commerce channels with and for their tenants, a measure which is expected to benefit the overall sales,” according to the report.
As for the office market segment, Colliers consultants believe that landlords should strive to appeal to the sectors that successfully weathered the crisis and adjust their tenant mix.
In business sectors like IT and healthcare, which were less impacted in China, or which may even be seeing increasing sales, tenants are expected to try and negotiate favorable long-term leasing deals.
(Photo source: the company)
More than 9,000 stores typically generating daily revenues of between EUR 15 million and EUR 20 million have been closed...