City Mall has four floors and covers 19,000 sqm, surface for rent, whereas only three floors are operational. As for the fourth floor, the mall’s representatives are conducting market researches and consider turning the surface into office spaces.
“We have a project for fitting the office spaces, but it depends on the outcomes of the latter researches. We try to combine these two types of investments, because in the end, they go hand in hand: office area generates traffic on food court, which provides other services to those in the office area,” Mihai Agaficioaia stated for Wall-Street.
According to him, fitting office spaces together near to retail area may be a profitable investment, as there are areas in a mall that can not be leased as retail spaces, namely the fourth floor, where the rent is not comparable to that of a retail store.
“If this project will be effective, within one year at the most, will be completed, and the surface of the mall will mount to 3,000-5,000 sqm office spaces,” Agaficioaia added, stressing that the rent will line up to rents of office spaces in general, and not to retail spaces”
All three operational floors of the mall are approximately fully leased, the surfaces ranging between 40 and 1,500 sqm, but the new manager considers changing the actual brands mixture, positioning the mall in middle class segment.
“We will two more brands that are not yet in the Romanian market, and we will upgrade the actual tenants’ mixture. We will be positioned only in middle class segment, and this is why we must clearly understand what people look for in a mall, and what brands they prefer,” Mihai Agaficioaia explained.
In order to bring a new brand in a mall, the required procedures may last up to two-three months, but it depends on the brand’s development policy, as even if the two parts are talking on the deal now, things can take place next year.
“First of all, you must persuade that brand that mall’s location is profitable: higher sales volume, better exposure on the market. You must come up with a customized project for each client, and to sustain it. Later on, you must persuade the client it is good for it to join the brands mixture that already exists in a mall, and also to identify what are its demands: does it need a better exposure, a certain surface or conditions”, City Mall manager stated.
Apart from the brands’ mixture, City Mall will adopt a new image, which will consist in outer cover, but also a change in food court, which will turn into a cosmopolite concept.
“We will create a combination between food and entertainment and areas where bands will perform live. The entire repositioning process will last approximately one year and it must be framed based on accurate market researches, and after we will comprehend the needs of the segment. It will be an investment on food-court and entertainment, however, mid this month we will complete all costs sheets,” Agaficioaia said.
According to him, City Mall’s strategy’s core feature is to set a difference from other malls, but to targeted on middle class segment.
Translated and adapted by Camelia Oancea.
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