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Romania hits 6.3 ml sqm of modern industrial and logistics space in 2022
Romania's total stock of modern industrial and logistics space has reached almost 6.3 million sqm, representing the third largest specific market in 12 of the largest Central and Eastern European economies, shows a report by real estate consulting company Colliers.
According to the cited document, the developers have another 650,000 sqm of modern space under construction.
The real estate experts attribute the robust evolution of the market in the latest period to the fact that Romania is increasingly seen as a regional distribution center by companies targeting the south-eastern part of Europe or even a larger geographical scope, beyond Romania's still insufficient offer in comparison with the rapid growth of the economy in the last decade.
The survey shows that the largest part of the modern stock of industrial and logistics space is concentrated in Bucharest and other regions with strong industry, such as Transylvanian counties, or Prahova and Dolj counties.
The vacancy rate for premium storage space remained in the single digits, around 6 percent on average, slightly above the CEE-12 average, while rents for Class A storage space increased slightly to somewhere between 4 and 4.5 euros per square meter at the end of last year, but continue to be among the lowest in CEE-12, due to strong competition in the supply area. However, it seems that things are slowly changing, so that in mid-2023, even a rent of 4.5 euros per sqm is considered low in the areas with a low supply of quality industrial space.
"Although the energy price shock has dispelled, the operators in the local I&L market continue to be interested in improving energy efficiency, as they are of the opinion that short-term cost increases will be clearly offset by gains in the long term. It is noteworthy that due to Romania's status as a EU member and to the large number of international tenant companies, the emphasis on ESG themes is more or less comparable to that in certain Western countries. The implementation of sustainable practices in warehouses and in production facilities is key for reducing environmental impacts, achieving cost savings, ensuring compliance with regulatory standards, improving reputation, managing risks and capitalizing on market opportunities. By integrating sustainability into their operations, companies can contribute to a more sustainable future, while obtaining at the same time a competitive edge on the market," explained Oana Stamatin, Colliers Chief ESG Officer for CEE and Romania.
The total I&L stock for the CEE-12 region has grown to over 65 million square meters, with 25 million sqm situated in and around the 12 capital city markets.
Colliers International Group Inc. is a leading real estate professional services and investment management company with operations in 66 countries, annual revenues of $4.5 billion and assets under management of $98 billion.
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