Logistics operators accounted for approximately 50% of the Q1 2023 demand for industrial spaces in Romania which totaled 330,000 sqm, up 10% year-on-year, according to Cushman & Wakefield Echinox.
Net take-up (excluding renewals) amounted to around 200,000 sqm, with more than 50% of it being related to projects which are due to be delivered in 2024.
The demand was mainly concentrated around the major logistics hubs in the country, namely Bucharest (32% of the total volume) and Timișoara (25%). At the same time, tenants also showed interest towards Pitești or Slatina.
”The demand for industrial and logistics spaces remained relatively strong at the beginning of the year, even in a context characterized by high inflation and interest rates, decelerating consumer demand and overall economic uncertainty. Moreover, Romania continues to be a relevant market in the region, attracting companies which aim to strengthen or expand their presence in the CEE, offering some of the most competitive conditions when it comes to costs (including occupancy costs) and to the quality of the spaces built by developers,” said Andrei Brînzea, Partner Land & Industrial Agency Cushman & Wakefield Echinox
In terms of new deliveries, nearly 100,000 sqm of new spaces were completed in Q1, below the Q1 average of the last two years. The industrial and logistics stock reached 6.66 million sqm, with vacancy rates of 5.1% in Bucharest and 6.6% at regional level.
The warehouse market in Romania still lags significantly behind the Czech Republic (11 million sqm), with Poland being the indisputable leader in the region, with a stock of nearly 29 million sqm.
Developers plan to complete new projects with a total leasable area of 400,000 sqm across the country by the end of 2023. Over half of the new projects will be in Bucharest.
