Romanian Retail Takes a Hit

Allan Saunderson is managing editor of Property Finance Europe and a contributor to GlobeSt.com.

BUCHAREST, ROMANIA-Developers and retailers clashed at the International Council of Shopping Centers Romanian Retail Real Estate Conference over how best to respond to the alarming downturn in the country’s economic fortunes. Despite a consensus to work together to boost footfall and dwell time, strong disagreement emerged on how this could be achieved.

Retailers want more transparency in rental, service and marketing charges levied by shopping center management, and the wider adoption of turnover rents. Developers accept the need for transparency but say retailers must provide reliable sales reporting; without this, center management cannot agree to turnover rents.