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Real estate: Developers built offices for 8,000 employees but no malls in the first semester
Real estate developers finished offices for 8,000 employees in Bucharest and 60,000 sq.m. of industrial areas in the country in the first semester but no commercial area, the latest JLL report shows.
“In the second quarter, four important office buildings were delivered in Bucharest- Green Gate (S Group), AFI Business Park 2 (AFI Europe), Green Cube/Chandler and Dionisie Lupu 72, which added over 50,000 sq.m. of class A and B to the initial total area. The office buildings delivered in the first half of the year amounted to 73,000 sq.m. The modern office stock in Bucharest is now 2.15 million square meters”, the report shows.
For the second half of the year another 70,000 sq.m will be completed - City Offices (the re-conversion of City Mall) and Green Court Bucharest developed by Skanska and representing 60% of the stock to be delivered until the end of the year.Developers also have projects for 2015, estimates for 110,000 sq.m.
In the industrial and logistic market the present stock in and near Bucharest is estimated at 1 million sq.m. And about 1.8 million sq.m. at the level of the whole country. A single unit was inaugurated in Bucharest in the second quarter, an extension of 2,000 sq.m in Otter Logistic Park in the western part of the city. In the rest of the country, Bosch completed in May a production unit for electronic car parts and a research center of 38,000 sq.m in Tetarom III, in Jucu, near Cluj Napoca.
JLL also reported in the first quarter the completion of works for two projects - the unit manufacturing car seats inaugurated by Lear Corporation - 12,000 sq.m in Solo Industrial Park, at Letcani near Iasi and an area of 7,200 sq.m in Timisoara industrial park developed by the Czech company VGP.
“Several important projects are under construction and could be completed by the end of the year. Cluj County Council, the owner of industrial parks Tetarom, began works for Tetarom IV on a piece of land of 80 ha at Feleacu. Another 25,000 sq.m will be completed in Ploiesti West Park. TRW Automotive Holdings Corp. plans to inaugurate an airbag factory for cars, of 4,000 sq.m. in Roman. VGP planned to extend projects with another 10,000 sq.m in Timisoara,” the report shows.
Developers were less interested in retail projects and no commercial center was inaugurated in the first part of the year. 128,000 sq.m were delivered at national level in 2013. The stock maintained at 2.5 million sq.m of which over 35% of projects in Bucharest.
The inauguration of two commercial centers is scheduled until the end of the year, both developed by NEPI investment fund - Vulcan Valley Center (35,000 sq.m) in the south-western part of Bucharest and Shopping City Targu Jiu (27,000 sq.m).
“Although the offer to be delivered in 2014 will reach the lowest level after 2005, investors give signs of having recovered confidence in the Romanian market and resumed the construction of projects made before the economic crisis and announced even new projects. About 270,000 sq.m are announced to be delivered in the country in 2-15 and 2016, 150,000 of which in 2015,” the study estimates.