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Rel Estate: Over 50% of all industrial and logistics spaces in Romania are in Bucharest-Ilfov
At the end of last year the stock of industrial and logistics spaces in Romania reached 6.45 million sqm, more than 90% of these spaces being located in Bucharest and in the West, South-Muntenia, North-West and Center regions, reveals the "Romania Industrial & Logistics Market" report published on Tuesday.
Data centralized by Cushman & Wakefield Echinox show that the Bucharest-Ilfov region currently has a stock of over 3.24 million square meters of storage space, with over 50% in the total stock. The West region (963,200 sqm), South-Muntenia (640,400 sqm), North-West (597,300 sqm) and Center (566,000 sqm) are ranked in the following places.
According to the quoted source, the least developed regions in terms of built industrial and logistic spaces are the North-East and South-East (approximately 119,000 sqm, each) and South-West Oltenia (200,800 sqm).
"The potential of these areas is high, considering that the spaces in the developed projects have been almost fully absorbed, so that the occupancy rates are over 95%. Moreover, at the level of the entire country, the stock is occupied in a proportion of approximately 95%, which shows, on the one hand, the sustained demand, which in the last 3 years amounted to more than 3 million sqm, and on the other hand, it reflects the developers' approach to build less speculatively, and more on the basis of pre-lease contracts," note the creators of the specialized report.
In 2022, new spaces with an area of 834,000 sqm were delivered, while for 2023 the developers announced new projects with a total leasable area of over 450,000 sqm, throughout Romania.
"Under these circumstances, taking into account the pace of developments in recent years and the positive evolution of demand, it is to be expected that the stock of logistics and industrial spaces in Romania will exceed the threshold of 7 million sqm by the end of this year. Even if the increase in costs of development and the increase in energy and land prices continued to put pressure on the rents requested by the new projects, the reference level was maintained at 4.25 - 4.50 EUR/sqm/month, the price being set according to various criteria such as the time occupancy, square footage or technical specifications. In the coming months, we expect to see marginal rent increases due to conservative approaches by developers building less speculative projects and also due to consistent demand for new space," real estate consultants say.
Cushman & Wakefield is one of the global leaders in the field of commercial real estate services, with 50,000 employees in over 60 countries and revenues of 9.4 billion USD.