Analyses and trends


28.02.2013 Demand for retail space continues to grow

By the end of 2014, the distribution of modern retail space of 1,000 population will increase from 85 square meters on average for the country as it is now, to 120 square meters per 1,000 people, according to consulting firm Colliers International .
In Sofia, the same indicator will rose by 82%, which would equate to 345 m2 of 1,000 people.
In the second half of 2012, modern retail space in Bulgaria increased by over 40 thousand square meters with the opening of Bulgaria Mall and the first level of City Mall Stara Zagora, reaching a total 640 thousand square meters country
In 2013, with the opening of two major shopping centers in Sofia - Sofia Ring Mall and Paradise Centre, the amount of GLA in the capital will increase by approximately 150 thousand square meters New 30 thousand sq.m. modern retail space and will come on the market in Burgas shopping center opening of The Strand.
In 2014, modern retail space will increase by 50 thousand square meters in the face of two new projects in the northwest of Sofia - Mega Mall Lyulin Carrefour and Lyulin. The total volume of modern retail space in shopping malls in the country will increase by more than 40%, reaching the end of 2014 a total volume of 905 thousand square meters
Average vacancy centers in Sofia in the second half of 2012 was approximately 5%. Last year, vacancy rates in existing shopping centers in other major cities in the country was 13% on average.
The second half of 2012 reported high dynamics in terms of vacancy rates and movement of tenants of the main shopping streets. In Sofia, the amount of free space of 4,500 sq m in the first half of 2012 decreased to three thousand square meters at the end of the year, while in other cities of the country has been a slight rise in vacancy. The most active traders during the period was primarily fashion operators, cafes and restaurants.
Food chains were again the most active traders and continued to improve its coverage in the country. Continued expansion of the form "close to the customer" in central and crowded residential areas and adjacent to major transport nodes.
Dynamic segment remains operators the "Do It Yourself".
As to the demand last year entered the market several new brands that have mastered about 27% in commercial centers in Sofia.
In the second half of 2012, rents for prime locations in shopping centers remained unchanged. Only those in Burgas reported a slight decline. Unlike shopping centers rents the main shopping streets have seen a significant decline in Sofia and Plovdiv decrease is approximately 50%.
It is expected that this year the supply of retail space to significantly outpaced demand, and absorption in the short term will remain a challenge. New factor, which is expected to slow growth in consumption, the political situation in the country.