Large retailers opting for mall locations instead of streetside

“Retailers left street locations in favor of malls in the past year,” said Oana Iliescu, Head of the Retail Department in the DTZ Echinox real estate consultancy company. Iliescu added that malls are an attracting alternative for many store chains which used street locations to expand, because malls offer more space, layout flexibility, increased traffic, and integrated marketing. Moreover, “eliminating unprofitable street locations from their portfolio can be an immediate measure taken by large retailers – such as household operators – which are now in the process of restructuring their store network,” added Iliescu.

“Retailers prefer spaces they can arrange to their liking,” said Andrei Vacaru, Senior Consultant in the Retail Leasing and Consultancy Department of the Jones Lang LaSalle real estate advisory company.

Another aspect that is worth consideration is the level of rents. “Rents of street-fronts range from €25-55 per square meter, depending on the neighborhood and location,” said officials of the Coldwell Banker Affiliates of Romania consultancy company.