ROMANIA R.E. Shaped 2021 Real estate accounts for nearly 40% of total carbon 04 emission, so what are we doing about it? Romania will offer interesting opportunities 08 across the board in the next 18 months The best is yet to come for regional cities in 16 Romania Desks will not represent anymore 21 the key element of the office space Romania R. E. Shaped | 2021 Macroeconomics Romania Year 2016 2017 2018 2019 2020 2021 Editorial Contents GDP € bn. 170 188 205 223 215 232 GDP growth % y-o-y 4.7 7.3 4.5 4.1 -3.9 4.3(f) 04 Real estate accounts for nearly Inflation rate % y-o-y -1.5 1.3 4.6 3.8 2.6 (f) 2.4 (f) 40% of total carbon emission, so what are we doing about it? Average net wage € 455 512 568 629 653 679 (f) 06 7 questions real estate investors are asking of their portfolios Unemployment rate % 5.9 4.9 4.2 3.9 5.0 4.5 (f) 09 Raising capital from corporate Retail sales % y-o-y 13.5 10.7 5.7 7.2 2.1 - real estate Sources: JLL Research, National Institute of Statistics, National Commission for Strategy and Prognosis 10 What can a real estate consultant bring to a corporate Office Market for rent Bucharest (A & B class) client’s business strategy Year 2016 2017 2018 2019 2020 12 Romania offers an attractive environment for new occupiers Stock m² 2,226,700 2,369,000 2,514,100 2,800,500 2,955,700 By Silviana Petre Badea 16 The best is yet to come for regional cities in Romania Annual deliveries m² 291,700 142,300 145,100 286,400 155,200 19 The increase of online Gross take-up m² 374,000 353,100 334,500 388,500 217,500 Romania RE-shaped commerce, a great opportunity for industrial market Net take-up m² 161,400 173,400 124,100 203,800 71,400 We are excited to present you the already third edition of Romania REShaped and we Desks will no longer be the key are extremely happy to see it become a staple of JLL Romania’s publications. This 21 element of the office space Prime rent €/m²/mth 18.5 18.5 18.5 18.5 18.5 year’s release marks a new important milestone for us – the first bi-lingual publication of this type to come out both in Romanian and English. 22 Flexibility – the new normal for Prime yield % 7.50 7.50 7.25 7.00 7.00 the office market. How will your After a 2020 that made us all think and reconsider our own priorities, 2021 is the workplace change with the times beginning of a new era – a time of innovation, of reinventing one’s self and one’s Institutional investors are Industrial Market for rent Romania 26 business, of looking at mundane things (office space, travel, our living spaces, our work moving their focus to Eastern Year 2016 2017 2018 2019 2020 habits, our commute) differently – a period of redesigning our entire environment. European residential markets Stock m² 2,872,800 3,230,100 3,814,100 4,464,100 5,052,000 28 How Covid-19 is turning the In this time of unprecedented flux and conditions, my colleagues and I have compiled spotlight on green finance Annual deliveries m² 330,000 357,300 584,000 650,000 587,900 for you in this post Covid -19 edition of Romania RE Shaped, the best of JLL’s local and global research and insight into the way we will be doing things differently in real Why renewable energy is 32 Gross take-up m² 475,200 519,800 514,200 550,900 695,200 estate, areas to watch in office, retail, industrial, capital flows orresidential and Private fueling investor interest Rental Sector (PRS) as well as the opportunities Romania has to offer in 2021. 36 Increased vacancy and the Net take-up m² 356,500 423,200 385,100 490,400 525,100 main factors leading to it The golden thread that goes across this entire edition and, indeed, JLL’s strategy Prime rent €/m²/mth 4.25 4.25 4.25 4.10 4.00 going forward is sustainable development and management. JLL is committed to do 37 How the e-commerce boom its part to reduce the impact the real estate has on the environment, from the building during COVID-19 is changing the Prime yield % 9.00 8.50 8.25 8.00 8.00 we occupy to the ones we lease and sell on behalf of our clients or the ones we fit-out industrial real estate for our corporates. To this end, we are active in areas such as renewable energy, Retail Market Romania (shopping centers & retail parks over 5,000 m²) retrofitting buildings for low carbon emissions, supporting green financing etc. Year 2016 2017 2018 2019 2020 We hope you will enjoy the read and please contact any of us for details. As always, we Hot topics are happy to receive your feedback and comments. Stock m² 3,250,300 3,380,300 3,410,300 3,582,500 3,724,700 The rise of the Romanian 11 Annual deliveries m² 235,000 130,000 30,000 172,200 142,200 real estate investor Prime rent €/m²/mth 75 75 75 75 73,5 Shopping centers Silviana 14 The Romanian capital market Prime rent €/m²/mth 8.5 9.5 9.5 8.5 8.5 becomes Emerging Market Retail parks CONTACTS Prime yield % 7.25 7.25 7.00 7.00 7.25 Shopping centers Managing Director PR & Marketing Research 18 Healthier/sustainable Prime yield % Silviana Petre Badea Cristina Lupașcu Alexandru David 8.25 8.00 7.75 7.75 7.75 buildings Retail parks [email protected] [email protected] [email protected] Sources: JLL Research Romania R. E. Shaped | 2021 4. What are JLL approach further resources as required. and concerns regarding sustainability? By driving all our sustainability and corporate responsibility activities Our purpose, We shape the future through Building a Better Tomorrow, of real estate for a better world, has we aim to deliver consistency, best strong and deep roots in our identity practice and direction globally across and history. During 2019 we set JLL’s the four Pillars of the program, as well organizational purpose into a short as the underpinning Foundations. In and memorable phrase, endorsed by so doing, we will come closer to our our Global Executive Board and Board ambition of embedding sustainability of Directors. We shape the future of real throughout our organization. estate for a better world by partnering with our stakeholders to drive To demonstrate our commitment to disruptive, impactful and sustainable a sustainable future, we have set a change. We do this by embedding science-based target, an ambitious sustainability into everything we do emissions reduction goal that is in through the four Pillars of Building line with climate science and the aims a Better Tomorrow: Clients, People, of the Paris Agreement. We have also Workplaces and Communities. signed up globally to the World Green Building Council’s Net Zero Carbon The four Pillars of Building a Better Buildings Commitment. Tomorrow are underpinned by three Real estate accounts for Foundations: our commitment to Details on JLL’s sustainability the highest standards of corporate targets can be found in our Global governance, our efforts to develop Sustainability Report. and drive thought leadership in nearly 40% of total carbon this area and our commitment 5. How can JLL help clients to deploying innovative, forward to meet their sustainability thinking solutions for ourselves and ambitions? the building sector has the greatest our clients. We believe these are the emission, so what are we opportunity to reduce greenhouse gas fundamental elements to the success emissions compared to other sectors, of Building a Better Tomorrow Through industry-leading strategies, with potential savings estimated to be as and the achievement of the UN tools and technologies, we help our much as eighty-five Gt of CO2 and energy Sustainable Development Goals. clients achieve their sustainability goals. doing about it? savings of 50% or more by 2050. All this Implementation of Building a Better Increasingly, they require innovative and puts JLL in a strong position to create a Tomorrow across JLL is supported consistent solutions across all regions. significant impact through the work we by a global governance structure for In response to this demand and to do with our clients and people as well as sustainability that is reflective of all further drive the development of value- in our workplaces and communities. parts of the business. based services and products, in 2019 we expanded our focus on energy and 3. Why are investors turning Throughout 2019, implementation sustainability capabilities with the intent We have asked Denise Michela 1. Why sustainability is changes for our business, our people, our towards sustainability? was focused on JLL’s operation and of providing a broader complement Sofia, EMEA Sustainability now very important? How clients, our communities and our planet. services in eight key JLL markets: of globally scalable, consistent and Officer JLL how the sustainability sustainability can improve Interest and engagement in the U.S., the U.K., Australia, France, profitable services. The initial scope of strategy is positively impacts not our lives and, ultimately, 2. How sustainability is environmental, social and corporate Germany, Greater China, India and these offerings will be directed to our only JLL and our clients, but also our businesses? impacting the real estate governance (ESG) within the investor Japan.