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  • Romanian investment market shows resilience in the face of the pandemic

    Romanian investment market shows resilience in the face of the pandemic

    The recent transactions closed in the last weeks, with a total value of 400 million euros, demonstrate that the investment market in Romania remains strong and attractive even in the Covid-19 pandemic period, according to Cushman & Wakefield Echinox real estate consultants.

    The joint-venture of Resolution Property and Zeus Capital Management recently acquired Floreasca Park office project from Bucharest, while AFI Europe finalised the acquisition of NEPI Rockcastle’s office portfolio in Romania, including Floreasca Business Park, The Lakeview, Aviatorilor 8 (all in Bucharest) and City Business Center from Timișoara.

    Results registered in Q2 and Q3 of 2020 have confirmed some important factors

    The closing of Floreasca Park in August, shortly followed by NEPI Rockcastle’s sale of their office portfolio to AFI Europe, under-pins the fact that the interest from investors in Romania remains and is set to grow.

    The joint-venture of Resolution (Fosun Group) and Zeus Capital Management shows that new money is prepared to enter Romania, a trend which continues that of 2019, when Morgan Stanley acquired their first property in Romania.

    The strength of tenant covenants in any building is essential and will be analysed even more closely by investors in the future.

    The quality of a building will also become ever more important, if sellers are seeking to maximise pricing and attract a wide investor pool.

    Debt finance continues to be available, however we do expect banks to be more selective in their funding choices, particularly in relation to the tenant strength and quality aspects mentioned above.

  • Almost 500,000 sq m of modern offices to be delivered in Romania

    Almost 500,000 sq m of modern offices to be delivered in Romania

    The office market in Bucharest and in the major regional cities, Cluj-Napoca, Timișoara, Iași and Brașov, continues to develop, with local and foreign investors having projects under construction or scheduled for delivery with an area of approximately 500,000 square meters that will be put into use in the next 16 months.

    This are the latest data of Bucharest Office Market and Office Regional Cities Reports, realised by the real estate consulting company Cushman & Wakefield Echinox.

    The most active market remains Bucharest, with projects of about 340,000 square meters scheduled for delivery by the end of 2021, followed by Timişoara (80,000 square meters), Cluj-Napoca (36,000 square meters) and Braşov (25,000 square meters).

    The most active developers in terms of surfaces scheduled to be delivered in the next period are One United (94,000 sqm), Iulius Group (60,000 sqm), Portland Trust (45,000 sqm) and Forte Partners (41,000 sqm).

    At the end of the first semester, the modern office stock in Bucharest was about 2.9 million square meters leasable area, without taking into account the buildings occupied directly by the owners, while the stock in regional cities was approaching the 1 million square meters threshold, the largest markets being Cluj-Napoca (347,000 sqm), Timişoara (245,000 sqm) and Iaşi (226,000 sqm).

    The vacancy rate varies from 10.3% in Bucharest, with values of 4.7% in Floreasca – Barbu Văcărescu and 7.4% in CBD, to 5.6% in Cluj-Napoca or 5.7% in Braşov.

    The prime headline rents remained stable, at a level of 19 euro / sqm / month in Bucharest and 15 euro / sqm / month in Cluj-Napoca or Timişoara, after a long period in which the competition between developers kept the local market rents at a competitive level compared to similar cities in Central and Eastern Europe.

    The most important office projects to be delivered in regional cities (S2 2020 – 2021)

    CityProjectGLA (sq m)DeveloperDelivery
    TimişoaraUBC 055,000Iulius Group2021
    TimişoaraISHO III17,000Mulberry Development2021
    TimişoaraRomcapital Center II8,500Altus2020/2021
    Cluj-NapocaBanca Transilvania HQ16,000Banca Transilvania2021
    Cluj-NapocaRecord Park11,500Speedwell2020
    Cluj-NapocaCluj BC (phase III)8,700Felinvest2020
    BraşovAFI Park Brasov I15,000AFI Europe2020
    BraşovCoresi Business Campus U110,500Ceetrus – Ascenta2021
    IaşiUnited Business Center 85,100Iulius Group2020
    TOTAL147,300
    Source: Cushman & Wakefield Echinox

    The most important office projects to be delivered in Bucharest (S2 2020 – 2021)

    AreaProjectGLA (sq m)DeveloperDelivery
    Central – WestOne Cotroceni Park I45,000One United2021
    Central – WestCampus 6 II & III41,000Skanska2020
    Central – WestSema Londra & Oslo31,500River Development2021
    Floreasca – Barbu VăcărescuGlobalworth Square28,000Globalworth2020
    Floreasca – Barbu VăcărescuOne Tower24,000One United2020
    Floreasca – Barbu VăcărescuOne Verdi Park24,800One United2021
    Nord – West (Expoziţiei)J8 Office Park45,000Portland Trust2021
    CentralU-Center32,000Forte Partners2021
    CentralMatei Millo Offices9,100Forte Partners2021
    CBDŢiriac Tower16,500Ţiriac Imobiliare2021
    CBDDacia One15,800Atenor Group2021
    TOTAL312.700
    Source: Cushman & Wakefield Echinox
  • Hotels in Romania record all-time low figures in 2020

    Hotels in Romania record all-time low figures in 2020

    A survey, prepared by Cushman & Wakefield in partnership with FIHR, targeting Romanian hoteliers was launched in April 2020 to understand the impacts the COVID-19 pandemic holds on the commercial lodging industry.

    The survey asses the ways in which business have been affected while identifying the critical factors to prevail from the crisis.

    The first cases of the coronavirus in Romania were announced on the 26th of February 2020, causing the government to call for a state of emergency by March 14 and restrict all international travel.

    While the sector recorded a 5% growth in overnight stays in 2019 compared to 2018, the ongoing COVID-19 outbreak and consequent government restrictions caused an unprecedent crisis for the industry.

    Taking into consideration the current market conditions and limited governmental support provided, 80% of hotels indicated being able to financially survive up to fourth months under the crisis conditions.

    Given that the survey was conducted between the months of April and May and that demand has not yet returned, the survival threshold for the majority of hotels will be reached in August. Although considerable efforts have been made by hoteliers to reduce operational costs, governmental support is urgently needed to protect employment in the hospitality sector.

    Similar to other countries across CEE, COVID-19 required hotels in Romania to shift priorities towards reducing overall operational expenses alongside sales & marketing costs in parallel to managing the influx of booking cancellations.

    On a Human Resource perspective, 80% of respondents focused on utilizing the subsidized leave provided by the government to address the COVID-19 crisis.

    Overall, Romanian hoteliers** revealed the actions taken towards diminishing the headcount to be positioned above average in CEE with hoteliers having reduced staff by 29% compared to a 24% average across CEE.

    Despite borders having reopened to the European Union as of June 1st, the difficult H1 calls for further staff reductions with combined redundancies reaching 38%.

    Government support leaving hoteliers wanting more

    Romanian hotel respondents expressed the highest level of dissatisfaction amongst other CEE countries with 85% of hoteliers stating unclear information being communicated by national authorities.

    Despite the satisfaction level for governmental support being relatively low, it is recorded to be higher than other CEE countries with 15% of hoteliers** being satisfied compared to 10% in other countries.

    As hotels reopen and prepare themselves for a road towards recovery, uncertainty remains on the ability to benefit from the support put forward by the government.

    Only 25% of hoteliers indicated having a clear understanding on how to be granted with access to the proposed support, while the vast majority remains unsatisfied with the ease of accessibility to such aid.

    While in many other countries governments already announced a specific help to tourism and hotel sector, for example direct financial grants in the Czech Republic, travel vouchers in Poland and aggressive campaigns promoting domestic tourism in Germany, there has been limited help to Romanian hotels so far.

    The road towards recovery

    In the weeks between April 24th and May 25th, 75% of hoteliers expressed being either ready or extremely ready to reopen their properties, with 87% being confident on being able to ensure the safety of both guests and employees.

    As hotels have reopened and others continue to prepare for reopening, hoteliers in Romania have expressed placing the safety of guests and employees at the heart of their strategies towards recovery.

    With COVID-19 causing major concerns among travellers and hotel personnel, the vast majority of respondents indicated being in favour of a new health and safety certification being established in Romania.

    Looking ahead

    The opening of European borders and lifting of travel restrictions has enabled the majority of hotels to re-open and enter the recovery phase despite the limited support provided by authorities.

    While very soft demand remains of most concern, hoteliers will also face challenge caused by increasing supply with several notable additions expected to open throughout the summer season.

    In comparison with other markets in CEE, Romanian hotels are less depended on international demand with nearly 80% of arrivals being domestic. While this factor will certainly help with the recovery, the slow anticipated return of business travel remains a concern, due to corporate demand acting as a major driver of occupancy in Romania.

    Nonetheless, multinational companies have recently expressed interest in relocating to Romania which will contribute towards boosting business demand on the medium to long term.

    In addition, while likely to primarily impact hotels in Bucharest, the European Football Championship planned for next year is hoped to have a positive impact on hotel performances and mark the recovery process towards driving healthy occupancy and ADR levels.

    The long-term outlook for the Romanian hotel sector remains positive, underpinned by the healthy tourism growth in recent years as well as continuous attractiveness of the country for international businesses, driving corporate and conference demand.

    Nevertheless, according to Oxford Economics, the number of nights in paid accommodations in Bucharest is expected to reach pre-crisis levels only between 2023 and 2024, but show a healthy growth in the following years.

  • Sameday continues its expansion in a former auto showroom in Tunari

    Sameday continues its expansion in a former auto showroom in Tunari

    The delivery company Sameday continues its expansion in Romania in the context of a continuing growing market, by leasing a space with an area of ​​approximately 1.200 square meters in Tunari, near Bucharest.

    The transaction was intermediated by the industrial department of Cushman & Wakefield Echinox.

    The industrial and logistics market was the most resilient in the first half of the year, when companies rented space with an area of ​​almost 300,000 square meters, in the context of a growing demand from online and traditional retailers to establish distribution centers in locations that allow faster deliveries to clients and stores.

    The logistics market in Bucharest consists of projects with an area of ​​over 2 million square meters and is largely concentrated in the western part of the city, at the entrance on the Bucharest – Pitesti A1 highway, where there is about 70 % of the existing stock.

    As the infrastructure improved on the northern half of the ring road, both developers and tenants started to migrate to the North-West and North areas, which benefit of less difficult access roads towards the interior of the city.

    In the first half of the year, the transactions volume reached approximately 127,000 square meters in Bucharest, increasing by 32% compared to the same period of 2019.

    About 90% of this demand came from the Retail (traditional and online), Distribution, Logistics and FMCG sectors, which had to optimize their distribution and supply chains to adapt to a high volatility demand.

  • Bucharest: Developers have a pipeline of projects in the Calea Victoriei area

    Bucharest: Developers have a pipeline of projects in the Calea Victoriei area

    Calea Victoriei in Bucharest, the 2.8-kilometer-long artery between Piața Victoriei and Piața Națiunilor Unite, will continue to grow as an office and hotel hub in the upcoming years, with the developers’ plans to build seven new office buildings and six hotels as a result of investments that could exceed the 300 million euros threshold, according to an analysis of Cushman & Wakefield Echinox real estate consulting company.

    The new office buildings will provide a gross leasable area (GLA) of ​​over 100.000 square meters, and the hotels would add to the offer over 700 rooms rated at four and five stars.

    Currently, in the Calea Victoriei area, there are 12 office buildings with a GLA of ​​about 55.000 square meters, representing less than 2% of the modern stock of Bucharest.

    Regarding the hospitality offer, the area is the most developed in Bucharest, with over 2,000 rooms in four and five stars rated hotels, representing about 30% of the accommodation capacity of the Capital in this segment.

    The most advanced projects are the Autograph by Marriott Old Town hotel, which will have 214 rooms, respectively the office projects Millo Offices, Tandem Offices and Dacia One, with a leasable area of ​​about 40.000 square meters.

    Regarding the investments volume, taking into account this area cost of land, which is among the most expensive in Bucharest, they can be estimated at over 2.000 euros / sqm of office GLA and between 100.000 and 150.000 euros per four or five stars hotel room.

    Thus, the development value for the construction of the proposed office buildings can be estimated at over 200 million euros, while hotels could attract a budget between 75 and 110 million euros.

    The most recent completed investments in this area are the Moxy Old Town Hotel on Doamnei Street, which has 119 rooms, and Victoriei 109 and Mendeleev Office 5 office buildings with a total GLA of ​​over 10.000 square meters.

    Calea Victoriei, the most representative high-street location of Bucharest

    Calea Victoriei is considered the most representative high-street location of Bucharest, attracting over time a series of premium and luxury fashion brands, such as COS, Hugo Boss or Gucci.

    In the recent years, it tends to become an area for promenade, especially in the evenings and on weekends, when people can better observe the dozens of palaces and representative buildings that host museums, cultural spaces or public institutions.

    In addition, Calea Victoriei is an important destination in terms of restaurants, bars and cafes located in the ​​Amzei – Romanian Athenaeum or Lipscani – Smârdan (Old City) areas.

    Office projects proposed for development in Calea Victoriei area

    ProjectGLA (sq m)DeveloperStatus
    Luterana Development26,400GlobalworthIn planning
    Doamnei 7-9-1120,000S+B GruppeIn planning
    Dacia One15,000AtenorIn construction
    Tandem Offices15,000Forte PartnersIn construction
    Casa Manu Offices*15,000StrabagIn planning
    Millo Offices9,000Forte PartnersIn construction
    Ştirbei PalaceTBDHagag EuropeIn planning
    TOTAL100,400  
    Source: Cushman & Wakefield Echinox, *unofficial name

    Hotel projects proposed for development in the Calea Victoriei area

    ProjectNumber of roomsDeveloperStatus
    Autograph by Marriott Old Town214Apex AllianceIn construction
    Oscar Maugsch Palace250*Dayan FamilyIn planning
    Georges Clemenceau 8-10100*Conlux DevelopmentIn construction
    Hotel Palas100*Hoffmann AutotechIn construction
    Grand Hotel du Boulevard50Niro GroupIn construction
    Calea Victoriei 22250*Private investorIn planning
    TOTAL764  
    Source: Cushman & Wakefield Echinox, *estimated

  • The modern retail stock in Romania will exceed the 4 million sq m this year

    The modern retail stock in Romania will exceed the 4 million sq m this year

    The modern retail stock in Romania, consisting of shopping centers, retail parks and commercial galleries with a leasable area of ​​at least 5.000 square meters, has reached 3.96 million square meters and will exceed the 4 million sq m threshold until the end of the year.

    This data are shown in Bucharest Retail Market and Retail Regional Cities reports, made by Cushman & Wakefield Echinox.

    Bucharest is the biggest retail market in Romania

    With a stock of 1.25 million sq. m, consisting of 32 projects with an average leasable area of ​​39.000 square meters, Bucharest is the largest market.

    The city has a population of almost 2.6 million inhabitants according to the latest household population data from the National Institute of Statistics.

    The most recent project of the Bucharest – Ilfov region stock is DN1 Value Center, completed at the end of last year by Prime Kapital and MAS Real Estate within Baloteşti.

    With a leasable area of ​​27,000 sqm, DN1 Value Center has approved the creation of a new retail park with an area of ​​almost 47,000 sqm, which also includes two units owned and operated by the German groups Hornbach and Lidl.

    The retail stock in Bucharest is comparable in size to that of the Center – West region of the country (1.33 million sq m) and twice as large as that of the East – Moldova region (595,000 sq m).

    At a city level, the most developed markets in terms of stock of modern commercial spaces are Timişoara (254,000 sqm), Constanţa (211,000 sqm) and Oradea (199,000 sqm).

    Covid-19 postponed some shopping centers opening

    In this context, the developers also postponed the opening schedule for new shopping centers, the most important inaugurations in the first part of the year being Shopping City Targu Mures commercial center, made by NEPI Rockcastle, and NEST Miercurea Ciuc retail park, developed by RC Invest.

    In the second half of the year, the most important inaugurations are expected in Brasov, where AFI Europe will open the third shopping center of the company on the local market, but also in Târgovişte, where Prime Kapital will open the first shopping center in the city.

    As for Bucharest, the first new commercial spaces are expected in 2021, when the extension of Colosseum commercial center in the northwest  part of the city will be inaugurated, while the Belgian group Liebrecht & wooD will open the first stage of Fashion House Cernica Village, the second outlet center in Bucharest and in the country.

    Retail projects delivered between S2 2019 – S1 2020

    ProjectLeasable surface (sq.m)DeveloperInauguration
    Shopping City Târgu Mureş40,000NEPI RockcastleT2 2020 – T3 2020
    NEST Miercurea Ciuc12,000RC InvestT2 2020
    DN1 Value Center Baloteşti27,000Prime KapitalT4 2019
    Promenada Mall Sibiu42,000NEPI RockcastleT4 2019
    Source: Cushman & Wakefield Echinox

    Retail projects with scheduled delivery between S2 2020 – 2021

    ProjectLeasable surface (sq.m)DeveloperInauguration
    AFI Palace Braşov45,000AFI EuropeT2 / T3 2020
    Damboviţa Mall33,000Prime KapitalT3 2020
    Sepsi Value Center16,600Prime KapitalT4 2020
    Bârlad Value Center17,700Prime Kapital2021
    Colosseum Mall Extension16,500Nova Imobiliare2021
    Fashion House Village Cernica I8,500Liebrecht & wooD2021
    Source: Cushman & Wakefield Echinox
  • Romania: Technology companies quadrupled their businesses and teams

    Romania: Technology companies quadrupled their businesses and teams

    The top 50 largest technology companies in Romania, which realise software and digital solutions for group companies or for third parties, have increased in the last ten years by approximately four times the turnover and local teams, reaching a cumulative turnover of 3 billion euros and over 50,000 employees in 2019, according to a Cushman & Wakefield Echinox analysis.

    Most of these companies, such as Amazon, IBM, HP, Microsoft or Oracle, are also in the top of the largest technology companies globally, which reconfirms Romania’s position in the top of the most dynamic IT hubs in the world.

    With 5.5% contribution to Romania’s GDP overall formation in 2019, the technology sector has become an important pillar of the national economy, but also of the real estate market, given that companies in this industry have been the most active office occupier in the last decade, both in Bucharest and in other university centers in Romania, such as Cluj, Timişoara or Iaşi, generating, on average, about 40% of demand.

    The latest data of the National Institute of Statistics indicated in 2018 a number of 140,000 employees in the IT industry in Romania, most of them working in Bucharest (46%), Cluj (12%), Timişoara (9% ) and Iaşi (6%).

    In the context of the Covid-19 pandemic, in which the digitization processes have been accelerated both among companies and public administrations, Romania is in a position to become an important provider of technological solutions that will contribute to the information systems efficiency.

    The average net salaries of Romanian employees working in the data technology sector were about 7.800 lei (1.600 EUR) in May 2020, being the highest in the Romanian economy, but among the lowest in the IT industry worldwide, the local market remaining extremely competitive in terms of wage costs.

    The stock of modern offices in Bucharest and regional cities (Cluj-Napoca, Timişoara, Iaşi and Braşov) amounts to approximately 4 million square meters, housing about 350,000 employees in various fields, such as IT, telecom, financial services (banks – insurance), professional services (lawyers – consultants), media, etc.

  • Companies will return with only 40% of the employees back to the office

    Companies will return with only 40% of the employees back to the office

    With the ease of travel restrictions imposed by the Covid-19 pandemic, companies begin to resume their activity in the headquarters located in office buildings, but with only 40% of employees in a first phase, according to a survey of real estate consulting company Cushman & Wakefield Echinox.

    Thus, if during the period of isolation at home imposed by the authorities, only 4% of the employees continued their activity from the office, the occupancy degree of office buildings will ten times increase in the next period.

    However, more than half of the employees working in the services area will continue, at least for a while, to work from home, according to the survey applied between May 21 and 29 on a number of 33 companies in Bucharest and Cluj with a a total of over 17,000 employees working in office buildings.

    Half of these companies have returned or will return to the office with a significant share of employees during June, almost 20% of companies scheduled their return in September, while 13% of the surveyed companies, especially small and medium, intend to return to the office only at the beginning of next year.

    In this context, 30% of the interviewed companies say that in the next 12 months they will need less office space, 61% of the companies cover their office needs with the already contracted spaces, while 9% of the companies expect to need extra space.

    The stock of modern offices in Bucharest and Cluj reaches almost 3.5 million square meters, hosting over 300,000 employees in various fields, such as IT, telecom, financial services (banks – insurance), professional services (lawyers – consultants), media, etc.

  • Bucharest has been the most dynamic logistics market in the region

    Bucharest has been the most dynamic logistics market in the region

    The stock of industrial and logistics spaces in Bucharest has doubled between 2015 and 2020, the capital of Romania being the most dynamic market in the Central and Eastern European region and a logistic regional hub throughout the analyzed period, according to the real estate consulting company Cushman & Wakefield Echinox.

    At the beginning of 2019, the stock of logistic spaces surrounding the Capital has exceeded the 2 million square meters threshold, getting close to Budapest level of 2.3 million square meters which incresed with approximately 23% over the last five years.

    The area of ​​modern logistics spaces in Bucharest is above the level of Bratislava (1.3 million square meters), but still remains below the level of Prague (3.2 million square meters) and Warsaw (4.3 million square meters), these being the most developed logistics markets in the region.

    The logistics spaces stock evolution in the capitals of Central and Eastern Europe in the last five years

    CityLogistic spaces stock 2015 (thousand sq.m)Logistic spaces stock T1 2020 (sq.m)Evolution
    Bratislava8521,30854%
    Bucharest9592,039113%
    Budapest1,8562,28723%
    Prague1,8623,16270%
    Warsaw2,7614,32056%
    Source: Cushman & Wakefield

    Given that developers are building new spaces with a leasable area of ​​over 150,000 square meters, Bucharest logistics market will continue to grow during this year, in order to meet the demand from online retailers and FMCG, two areas which have been less affected by the restrictive measures taken by authorities to limit the spread of the Covid-19 virus.

    At a national level, the logistics and industrial markets reaches over 4 million square meters, with important industrial development poles in Timişoara, Cluj or Ploieşti, cities that are well positioned to attract new investment, as the tendency is to shorten supply chains and encourage local production for certain categories of products considered essential or strategic.

  • Bucharest and other major university centers will attract new businesses

    Bucharest and other major university centers will attract new businesses

    Bucharest and the major university centers in Romania, such as Cluj-Napoca, Timişoara, Iaşi, Braşov or Craiova, are well positioned to attract new business in the services sector, despite the Covid-19 pandemic that slowed down the transactional activity and led companies to “work” from home, consider the Cushman & Wakefield Echinox real estate consultants.

    The actual context has highlighted even more the Romanian employees’ flexibility and ease of adapting to new situations, as well as the IT infrastructure developed in major cities, elements that have facilitated the transition from the traditional office towards teleworking, thus reducing the impact on operations.

    In fact, a study conducted by the Broadband Deals platform in Great Britain places Bucharest on the first position in a ranking of the best 50 cities in the world for remote working, a hierarchy that considered elements such as average internet speed, the amount of remote working jobs available, the living costs and the availability of home delivery platforms.

    The next three positions are taken by Houston, Las Vegas and Atlanta in the United States, while in the European ranking Bucharest is followed by Budapest, Kiev and Warsaw.

    In the short term, a more conservative attitude of some companies is expected, which will have to analyze the impact of this situation on the entire client portfolio, but in the medium and long term the local market will be rewarded for the ability and flexibility to work from home, in case it is required.

    On the other hand, most companies are currently considering the opportunity to offer employees more flexibility regarding their workplace even after the social distancing measures get more relaxed and as a health safety measure they are working on plans to reduce the density of office spaces.

    81,000 square meters of new office spaces​ were delivered in Bucharest this year

    In Q1 2020, 81,000 square meters of new office spaces​ were delivered in Bucharest, while Ana Tower and the third building of the Globalworth Campus project in Pipera were the most important deliveries.

    By the end of the year, new spaces with a total area of ​​around 145,000 square meters are expected to be delivered. Thus, the total volume of new office spaces will reach about 226,000 square meters, approximately 21% down from 2019 deliveries.

    Regarding the demand, while the volume transacted in Bucharest decreased in Q1 by 50% compared to the same period of 2019, up to 52,000 square meters, throughout Romania the level remained stable at about 21,000 square meters, the important activity being seen in Timișoara, Cluj and Iași, and also in Craiova, a city that is starting to attract more and more office occupants.

    The office stock in Bucharest reaches almost 3.2 million square meters, with a vacancy rate of 9.8%, slightly increasing, while the area of ​​modern offices in major regional cities – Cluj-Napoca, Timişoara, Iaşi and Brașov – approaches the 1 million square meters threshold.

  • Employees who work from home appreciate saving time and money

    Employees who work from home appreciate saving time and money

    The saving of money and time spent in traffic are the main advantages considered by the employees of office buildings that are currently working from home, while the disadvantages mentioned are the lack of direct socialization with the colleagues, in the first place, followed by the difficulty in separating professional from personal time, secondly, results in a survey conducted by the real estate consulting company Cushman & Wakefield Echinox.

    The study was applied online via a questionnaire to more than 200 employees who normally work from the office, but have been working from home in the last weeks, as part of the social distancing measures adopted to limit the spread of Covid-19.

    The respondents have an average age of 36 years and work mainly in Bucharest (88%), in various sectors of activity, such as professional services (24%), financial (18%), real estate (17%) or technology and telecommunications (13%).

    On average, respondents performed their activity at home for 15 working days before completing the questionnaire.

    80% of the respondents appreciate saving the time spent in traffic, a considerable advantage in the context in which, on average, the employees in Bucharest have a commuting time between home and office of about 45 minutes on a regular day, according to a study performed last year by Cushman & Wakefield Echinox.

    The following advantages are considered to be financial savings (for 49% of the respondents), the improvement work-life balance (43%), more freedom to manage working hours (40%), as well as the extra rest time (33 %).

    What about the disadvantages

    On the other hand, the biggest disadvantage is the lack of direct socialization with colleagues, mentioned by 74% of the respondents, followed by the difficulties in separating the time dedicated to the professional activity and the personal one (44%), the lack of a proper space to work (33%) and the diminished capacity to focus, due to disturbing factors in the house (33%).

    Other issues reported are related to difficulties in managing the relation with clients and collaborators (29%), technical issues (26%) and lack of direct feedback on the activity performed (24%).

    In this context, there is a certain balance in terms of the general description of the work from home experience. Thus, 38% of the respondents consider this period as very good or excellent, 34% good, while for 28% of them the work from home time is unsatisfactory or even frustrating.

    Moreover, the option of working exclusively from home after the activity restriction ending period is preferred by only 3% of the respondents, most of them opting for a flexible program of 4 work from the office days and 1 from home (39% of respondents) or 3 days at the office and 2 at home (27%). On average, the employees interviewed would choose, if they had the opportunity, to work 3.4 days from the office and 1.6 days from home.

  • The restriction on shopping centers activity affects over 9.000 stores in Romania

    The restriction on shopping centers activity affects over 9.000 stores in Romania

    The decision of the authorities to temporarily suspend the purchase of goods considered non-essential from the shopping centers affects more than 9.000 stores and each day when they are closed equals with between 15 and 20 million euros lost from unearned income, according to an analysis made by the real estate consulting company Cushman and Wakefield Echinox.

    The military ordinance issued in the context of the Covid-19 pandemic makes an exception for suspending the stores that mainly sell food, electronic, pharmaceutical and pet shop products, as well as cleaning and optical services.

    The modern retail stock (malls, retail parks and commercial galleries) in Romania sums up about 3.9 million square meters, of which 23% is represented by supermarkets and hypermarkets, the main category of stores that remain open, according to Cushman & Wakefield Echinox data.

    The estimated unearned income takes into account an average level of sales in a normal activity timeframe for a shopping center, at around 2,000 euros / sqm / year respectively.