The scarcity of high-quality commercial spaces in Bucharest has put a traditional commerce area back into the spotlight. And since prices are two or even three times smaller than on the Capital's main avenues (Magheru Blvd. and Calea Victoriei), Calea Mosilor (Mosilor Avenue) is back in fashion.
"Calea Mosilor may become an interesting commercial location again. There are many clients willing to buy spaces in this area," says Monica Barbu, an analyst with realtor Colliers International. Among the companies interested to open stores on Calea Mosilor are the big commercial space managers, such as Trination, United Capital and Generalcom, but also small investors.
Consequently, the price of spaces has reached 1,600 dollars/square metre in certain cases, up 20% since last year, Barbu says. "The spaces located at crossroads are the most expensive, especially in the area spanning from Mihai Eminescu St. to Obor," Monica Barbu states.
"About 90% of the interested investors are buying these spaces in order to rent them later and very few companies buy them for their own use," Barbu adds. At the same time, many investors are looking to rent stores on Calea Mosilor. "There is high traffic in this area, the avenue is very close to downtown and many people are crossing this area every day," the Colliers analyst also says.
"United Capital is not managing any spaces in the Calea Mosilor area, but we are interested in buying some," says Luminita Sårbu, the company's marketing manager. United Capital administrates several commercial spaces held by companies controlled by New Century Holdings.
Costin Stingu, head of the retail department at realtor Eurisko, deems the interest in Calea Mosilor as "seasonal" - there are years when demand soars, followed by many years when spaces are left vacant. "There is a certain cycle in this area, but, at any rate, investors are looking to buy as many spaces as possible. On Calea Mosilor, these spaces are being sold for 1,500 USD/sq. metre, as compared to 2,500-3,000 USD/sq. metre on Magheru Boulevard for instance," he says.
According to Stingu, the price gap is justified, as Calea Mosilor will never be as circulated as Magheru Blvd. "Any big company strives for visibility, location in a high-traffic area even if not all passers by will actually enter the store," he feels. Clothes stores are doing great on Calea Mosilor, unlike luxury stores, Stingu states.
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