RETAIL AND OFFICE MARKETS SIGNAL A SLIGHT DECREASE IN VACANCY RATES DURING THE SECOND HALF OF 2011 WHILE THE DEMAND STAYS STRONG.
TIRANA, April 12th 2012—Colliers International Albania has recently released its biannual research report: Research and Forecast for the second half of 2011.
According to Colliers research, both office and retail markets experienced a slight decrease in vacancy rates during the second half of 2011 while the demand continued to stay strong.
"The second half of 2011 saw slow activity in the office market with inactive developments in the office projects under construction in Tirana. Contrary to the office market, the retail market has already absorbed the new retail space introduced by Tirana East Gate which brought to the market additional modern retail space. The shopping center has attracted to the market, giant food retailer, Carrefour" said Stela Dhami, Managing Director of Colliers International Albania. This is a definite positive entry in the Albanian retail market increasing customer choices.
To this effect during the second half of 2011, no new supply was added to office market segments in Tirana and this trend is expected to continue until the opening of the first phase of Tirana Business Park and TID.
On the other hand the retail market segment remains a very dynamic and growing sector in Albania. In November 2011, 41,200 m2 were added to the traditional shopping centre stock with the opening of Tirana East Gate, the largest shopping centre in Albania. While the well known DIY German chain, Praktiker, closed its only presence in Albania thereby decreasing the specialized shopping centre stock by 11,000 m2.
Vacancy rates in the office market during the second half of 2011 faced a decrease of 1% reaching the total office market vacancy level of 10% the equivalent of 6,365 m2 compared to 11% or 7,000 m2 in H1 2011. Parallel to offices, the retail market experienced a slight decrease in vacancy rates with 0.01%, in the second half of 2011 compared with the previous period, reaching the level of 10.7%.
Average rental prices in the office market continued to remain stable with minimal fluctuations in selected office buildings during H2 2011. A few high quality office buildings observed even higher rental rates per square meter. Prime headline rents in the city centre vary from 17-24.5 €/m2/month. While within shopping centers, rental prices have experienced a small decrease in H2 2011.
Colliers forecasts a stable first half of 2012 in rental prices and vacancy rates for both office and retail markets.
For more information please read our “Research and Forecast” report or visit our website.