The relocation of production facilities from far-away locations, such as Asia, is generating additional demand for industrial and logistics projects in CEE-based markets, with Romania being among the biggest beneficiaries, according to a Cushman & Wakefield report.
The investment in manufacturing facilities comes after companies had to deal with major supply chain disruption in the past years, mainly due to the pandemic.
Nearshoring, along with other investment decisions, has driven significant growth in occupier demand for floor space, says Andrei Brînzea, Partner Land & Industrial Cushman & Wakefield Echinox.
”In 2022, manufacturing occupiers committed to nearly 10 million sqm of space, up 27% compared with 2017. In Romania, in 2022 the demand from production companies increased by almost 40%. With businesses considering where to locate their production facilities closer to home markets, there is likely to be an increased demand for industrial floorspace in certain locations, for both manufacturing and logistics uses,” added Brînzea.
The report points out that key sectors located in the CEE are textiles & apparel, automotive, machinery, electrical & electronic goods, and some consumer goods.
Potential locations for new investments will be based around key transport corridors along major motorways and at key multimodal points between CEE countries to Western European destinations.
