Romania second in the region for industrial and logistics spaces rented in Q1, the report states

Romania ranked second in the region in terms of industrial and logistics space leased in the first quarter of 2024, after Poland, the undisputed leader in Central and Eastern Europe, according to a recent report by real estate consultancy Cushman & Wakefield Echinox . Local demand surpassed that of the Czech Republic, Slovakia and Hungary.

Companies leased approximately 200,000 sqm of industrial and logistics space in Q1, with demand driven mainly by manufacturing companies, FMCG and logistics operators.

The activity of manufacturing companies on the industrial leasing market in Romania was remarkable at the beginning of the year in terms of the share of contracted spaces in the total transactional volume (17%) while it surpassed logistics operators (10%) and FMCG companies (13%) ). ) for the first time, Cushman & Wakefield Echinox said.

Stefan Surcel, Head of Industrial Agency Cushman & Wakefield Echinox, commented: “Manufacturing companies are becoming more and more relevant on the industrial and logistics leasing market, partly due to the phenomenon of nearshoring, but also through relocations from Western Europe or even from other CEE countries. These companies usually operate in their own premises, but they also require greater flexibility due to constantly changing consumption habits, which flexibility can be obtained by renting other premises. We believe that this trend will intensify in the period ahead, while ongoing infrastructure projects will open up new areas for investment in industrial projects.”

The largest transaction concluded in Q1 2024 was related to the sale and leaseback of 19,000 sqm of Tenneco premises in Ploiesti to WDP, followed by a pre-lease of 11,000 sqm by Maravet within WDP Park Baia Mare and the new lease signed by Drim Daniel Distribution in a 10,000 sqm warehouse space in MLP Bucharest West.

The demand was mainly concentrated in Bucharest (50% of the total volume), Ploiesti (10%) and Timișoara (6%), with companies also showing up in Iași, Craiova, Arad and Oradea.

When it comes to new supply, the first quarter saw a slowdown in investment “as developers took a more cautious approach amid current economic uncertainties and a declining number of speculatively developed projects,” the company said. Thus, only 50,000 sqm of new premises were delivered in Q1 (compared to 100,000 sqm in the same period of 2023).

The stock of industrial and logistics spaces reached 7.07 million sqm, with vacancy rates of 6.1% in Bucharest and 5% at the regional level.

The developers currently have projects under construction with a total area of ​​500,000 sqm in various cities in the country, but Bucharest, Timișoara and Brașov remain the main destinations.

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