Companies have leased close to 550,000 sqm of industrial and logistics spaces across Romania in the first half of 2023, with more than one third of the volume represented by pre-lease agreements, according to Cushman & Wakefield Echinox.
In Q2 alone, the gross take-up exceeded 215,000 sqm. The new demand continues to be the main driver of the leasing market, with a share of 90% out of the Q2 2023 gross take-up and 72% overall in H1 2023, demand which is coming from various sectors, among the most active being retail, distribution of general goods, automotive and logistics. Most of the new lease deals were closed in regional cities of the likes of Brașov, Timișoara, Oradea and Arad.
“The leasing activity on the logistics and industrial market has been effervescent throughout H1 and we may once again see a total annual take-up of over 1 million sq. m in 2023. Romania is a dynamic and attractive hub for many companies, both existing ones and those aiming to expand in the region in order to streamline their logistic operations. In this context, we are optimistic about the market's evolution going forward, both in terms of supply and demand,” said Rodica Târcavu, Partner Industrial Agency at Cushman & Wakefield Echinox.
The industrial stock reached 6.77 million sqm at the end of June, with new deliveries totaling 202,000 sqm across the country in H1 2023. However, the volume of delivered projects was down compared to the figure of 300,000 in H1 2022. By year-end, the stock will gain another 250,000 sqm and the single largest new project will be Element Development’s ELI Park Bacău with a leasable area of 37,000 sqm.
The biggest new delivery in H1 2023 was CTPark Oradea, which has a leasable area of 39,400 sqm. In terms of leasing, the biggest transaction saw Intercars pre-lease 47,000 sqm in VGP Park Brașov.
The overall vacancy rate slightly decreased at a level of 4.8%, while a further drop is expected by the end of the year as a result of a more cautious approach adopted by developers.
The prime monthly rents in Bucharest and regional cities hovered between €4.25 - €4.50 per sqm in Q2 2023. Given the limited supply and the sustained ongoing demand, asking rents are expected to maintain this current going into H1 2024, according to Cushman & Wakefield Exchinox’s consultants.
