Around 38% of industrial rental demand came from Bucharest in 2023, down from 48% the previous year, according to Colliers data.
All in all, industrial leasing totaled 770,000 sqm during 2023, down from a record of 830,000 sqm closed in 2022.
“For example, we have been talking for many years about the fact that the Romanian I&L market is slowly moving away from the capital, as manufacturing and logistics companies seek opportunities in other parts of the country, such as lower labor costs, better availability of labor and improved infrastructure connectivity, as well as to accommodate economic development in these areas. This suggests that Bucharest's share of total leasing activity in 2023 was most likely at an all-time low, while transactions outside the capital were at an all-time high; while we lack comparable data beyond 2015, we can easily reach this conclusion as the bulk of deliveries back then were centred around the Capital,” said Victor Cosconel, Head of Office & Industrial Agencies at Colliers.
Another aspect correlated with this shift towards activities outside Bucharest has much to do with the increase in manufacturing activities.
“About one third of the leased space was signed by tenants targeting manufacturing activities, a significant change as before the pandemic this share was usually below 10-15%, unless a large contract was signed. These are just the first signs of the reshoring wave that we expect to become increasingly visible in the coming years,” he added.
Looking forward, Colliers’ consultants point out that Romania has the potential to reach an industrial stock of 10 million sqm in 2030 compared to 7 million sqm at the end of 2023.
