Upgrading your shopping center- is it really necessary?

By | May 26, 2014
MarketOnline

Upgrading your shopping center- is it really necessary?Most shopping centers in Romania have already years since they were opened. The differences in malls that have recently opened and those opened years ago are felt even by the customers or daily visitors. But shopping centers that do not invest steadily in their image and not readapt regularly to consumer requirements will not be able to keep up with the new projects.

Shopping centers are favorites among Romanians – statistics showing that they are the third living space, after home and work. Thus the number of annual inaugurations does not surprise anyone especially in Bucharest.

But experts warn that the lifetime of a shopping center is not very long, unless investments are scheduled to meet customer requirements. So what do you need to do after buying a shopping center? A few changes will always prove to be catchy in a market that is constantly undergoing through changes.

Everything clear so far but the following question is where should we start from in making those changes ans ensure success for our business? The answer is rather simple and offers handy solutions. First start with a face-lift. The inside and outside face-lift is, in general, part of the normal life of shopping malls in every market. However, the existing shopping centers in Romania must do more and invest in functional changes to improve the tenant mix and to capitalize on opportunities and consumer trends or simply ,to survive.

At least 500,000 square feet of existing shopping centers in Romania need operations to adapt to market conditions and trends, according to experts in design and project management in real estate. Remodeling costs for existing malls exceed 200 million euros.

Modernization projects as percent of the investment costs, include: face-lift operations (improving aesthetics, materials and design – that require on average 30% of total investment);functional reconversion and expansion (accounting for 40% of costs); technical upgrade to meet the requirements of international retailers and the need for cost effectiveness (approximately 30% of investments for modernization).

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Facilities for entertainment and leisure are the key elements of a social mall. The next period will show us fact like filling the areas food court with casual dining and a quality and type increase in the supply of entertainment.Simultaneously, owners should capitalize the cinema market, which although it went up to 14% last year, still has a low penetration rate of 0.45, compared to other markets, where the ratio of tickets sold and total population is 0.9 (Poland), 1.1 (Czech Republic), 1.8 (Austria) and 3 (France).

Shopping centers are going through massive changes at the international level. On the one hand professionals retailers tend to focus, while others disappear, and on the other hand, the Internet and online commerce generates mutations.If the latter holds currently an account for 9-11% of modern retail in 5-10 years it could reach to a 28%.

The expansion of online commerce will not necessarily have an negative impact on shopping centers.Some buyers may even combine online shopping with visiting shopping centers.

The point is, the latter tends to become more of an entertainment destination and if the investors understand this and start upgrading in this direction the only thing to do is find the right offer and exploit it to maximum efficiency. Interested particuarly in the Capital city end you search here: http://businesses-properties.com/shopping-center-on-sale-in-bucharest-romania/.

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