Business Forum • 1 August, 2024 at 10:13 AM
The leasing volume of industrial and logistics spaces in Romania amounted to 410,500 sqm during H1 2024, down by 25% versus the same period of last year, with close to half of the total take-up recorded in Bucharest region, according to a Cushman & Wakefield Echinox report.
The report further shows that the new demand had a share of 52% in the overall leasing volume, which is more than double compared to the new supply.
Production and manufacturing companies generated the most demand for industrial spaces, with almost 100,000 sqm leased. Next came logistics and distribution operators (63,000 sqm), retail, e-commerce and FMCG companies with 48,000 sqm, automotive sector (24,000 sqm) and pharma (17,800 sqm).
Rodica Târcavu, Partner Industrial Agency at Cushman & Wakefield Echinox, says that the shriking inflation and falling interest rates, coupled with the GDP growth outlook will translate into a “solid year” for the market, both in terms of supply and demand
The total modern stock of industrial & logistics spaces reached almost 7.13 million sqm at the end of Q2, as developers completed new projects with a total leasable area of around 104,000 sqm across the country in H1 2024.
The total development activity in H1 2024 slowed down when compared with H1 2023, when it accounted for 202,000 sqm, while the estimated new supply for the next 18 months is at around 571,000 sqm. Thus, Romania's industrial stock could exceed 7.5 million sqm by the end of this year.
The report further shows that the vacancy rate at national level has slightly decreased to 4.8%, while a further drop is expected by the end of 2024.
The monthly rents are expected to remain in the €4.30 - €4.70 per sqm band going forward.