The Romanian commercial real estate market presented a diverse landscape in Q3, with the industrial stock continuing its expansion while the Bucharest office sector registered no new deliveries for the first time on record, according to a report by iO Partners.
Investment activity remained subdued, with international capital accounting for the majority of the year's total volume.
The office market's total stock remained essentially flat at 3.38 million sqm, showing a marginal decrease of -0.13% year-on-year. A notable development in Q3 2025 was the zero sqm recorded for completions, a historic first for the local market. This absence of new supply, however, contributed to a continued downward trend in the vacancy rate, which fell to 11.2%.
Despite the delivery lull, the under construction pipeline saw a significant surge, reaching 184,000 sqm, an increase of 173% year-on-year. This upcoming stock suggests a strong rebound in future supply.
"The vacancy rate in Bucharest continued its downward trend in Q3, amid the absence of any new office deliveries expected for 2025, a first for the local market. The third quarter marked a notable increase in relocation activity, reflecting a flight to quality, as most transactions targeted higher-grade buildings," said Oliver Derksen, Head of Office Advisory, iO Partners Romania.
Romania’s industrial stock officially surpassed 8 million sqm in Q3 2025, reaching 8.03 million sqm, an increase of 2% year-on-year. This growth came despite a sharp decline in new completions.
Only 50,100 sqm of new industrial space was completed in Q3 2025, a decrease of 76% year-on-year.
Contrastingly, the volume of space under construction expanded significantly to 441,000
sqm, a 47% increase year-on-year, signalling strong future supply growth. The vacancy rate in this sector sits at 4.7%.
"Romania's industrial market showed strong performance in the first nine months, driven by steady demand, particularly from retailers and logistics operators. However, new deliveries remained limited, contributing to a further decline in vacancy during Q3," said Andrei Benţea, Head of Industrial Agency, iO Partners Romania.
For the year to date, the office sector has claimed the largest share of the average investment deal size, accounting for 46%, closely followed by retail at 40%. The total investment volume year-to-date (YTD) stands at €404 million.
"Although investment activity remained subdued during the first three quarters, we've observed a broader mix of investors entering the market, along with a diversification in their focus, spanning from offices, retail, hotels, to industrial assets," said Andrei Văcaru, Head of Capital Markets CEE, iO Partners.
