Tenants Flee Commercial Spaces In Arad

Paula Bulzan

Most of the commercial spaces in downtown Arad are becoming vacant as the crisis is taking a heavy toll on the retailers" turnover and the rent is becoming unaffordable. Merchants say they prefer to move uptown, where the rent is cheaper, while realtors claim the market is facing unprecedented fluctuations.

Irina Marcu, a representative of the real estate agency West-Arad told BURSA: "We"ve had commercial spaces that were leased two times in one month to different people. Shop owners are afraid of the current economic turbulence and cannot estimate an average turnover. Consequently, they fear they will not be able to pay the rent."

Owners of commercial and industrial space are willing to negotiate the rent if the prospective tenant is ready to pay three months in advance or collateralize the rent with goods or property in front of a notary. Those currently seeking commercial space in Arad should be ready to pay around 30-40 EUR/ sq.m. per month.

The usual customers for street-front commercial space are banks, casinos, pharmacies, coffee shops, restaurants and luxury apparel shops. Nevertheless, highly attractive downtown spaces, which would have sparked quite a competition a few years ago, are currently vacant, as expensive rent and the owners" inflexibility are discouraging any prospective tenants.

"Based on the offers we have received recently, we have not noticed a visible decrease in the value of the rent. Perhaps some reduction could be negotiated on a case by case basis. However, reductions will probably be offered only for six- or 12-month contracts," Irina Marcu added. Andreea Pasca, the CEO of Lang Imobiliare Arad, told BURSA that owners would not even consider reducing the rent in order to improve their chance to find tenants.

Commercial spaces in uptown Arad are also affected by the crisis. Two commercial centres in the Aurel Vlaicu area have been vacant for two months. The spaces used to be occupied by a furniture store, a lighting store and a Chinese store until the owners could no longer afford to rent.