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Demand for industrial and logistics property reached 456,000 square meters in the first nine months of 2017
Demand for industrial and logistics property reached 456,000 square meters in the first nine months of 2017, a figure close to the 2016 all-year demand of 463,000 square meters, shows a survey by a real estate consultancy firm .
The new demand accounts for over 70 percent of the traded area, specifically 330,000 sqm (new contracts, pre-lease contracts). The share of new demand of the traded total increased from the same period of 2016, reflecting also in the declining vacancy rates. According to the JLL Romania survey, contract renegotiations and renewals account for a total of 126,000 sqm of industrial and logistics property.
Bucharest attracted 56 percent of the total demand; logistics companies generated more than half of the countrywide demand, with 250,000 square meters of leased space all over the country. Almost one quarter of the leased area went to production companies.
Other cities with significant transactions concluded on the industrial and logistics segment over the surveyed period are Pitesti (50,000 sqm), Timisoara (45,000 sqm), Roman (31,000 sqm) and Cluj-Napoca (25,250 sqm).
"Demand for industrial property remains high and confirms the clients' appetite for expansion, as proves the fact that the three-quarter total volume this year represents 98 percent of the figure recorded throughout 2016," argue the authors of the survey.
As far as the offer is concerned, projects totaling more than 210,000 sqm have been handed over in the first nine months of the year all over the country, so that property stock at the end of September was almost 3 million square meters, of which 1.5 million square meters in Bucharest.