Industrial and logistics projects accounting for more than half a million sq. m are currently under construction and due to be delivered by the end of 2024, 60% of which being already pre-leased. The limited pipeline of speculative projects could put pressure on rental levels in the coming period due to the fact that, even though Romania recorded one of the most spectacular increases of demand for industrial and logistics spaces in the Central and Eastern Europe after the pandemic, rents remained the lowest in the region, according to data from the Cushman & Wakefield Echinox real estate consultancy company.
Therefore, around 555,000 sq. m of industrial and logistics parks are currently under construction and are planned to be completed in the Q4 2023 - Q4 2024 period, with 315,000 sq. m being already pre-leased. Bucharest (154,000 sq. m), Brasov (108,000 sq. m), Bacau (50,000 sq. m), Slatina (50,000 sq. m) and Timisoara (34,000 sq. m) are the main locations where developers will expand their footprints in the next 15 months.
Andrei Brinzea, Partner Industrial Agency Cushman & Wakefield Echinox: “In a context where the economic uncertainty continues to impact the tenants’ expansion plans, developers may adopt more cautious approaches when it comes to commencing new investments in industrial & logistics facilities, on the short term at least. This caution can also be noticed in other markets in the region, a region where the new supply has seen an y-o-y decrease by 16% in the first 9 months of 2023. However, we estimate that the developers’ appetite for new investments will bounce back on the medium term, given that we are already witnessing a downward inflationary trend and a stabilization of the financing costs, elements which could stimulate the tenants’ needs for new industrial premises.”
The YTD new supply was of 252,000 sq. m across the country. The total yearly development activity in 2023 will be lower compared with 2022 (821,000 sq. m), as the Q4 pipeline is estimated at around 183,000 sq. m.
In terms of demand, a gross take-up totaling 716,000 sq. m was recorded in the first 9 months of the year, reflecting a 22% y-o-y drop. The new demand continues to be the main driver of the leasing market, with a share of over 70% out of the gross take-up registered in Q3 2023 and also during the first 9 months of 2023.
Moreover, the local market has recorded the highest demand growth between 2020 and 2023 compared with the pre-pandemic levels among the CEE countries (Poland, Czech Republic, Romania, Hungary, Slovakia, Bulgaria). Thus, the average quarterly demand for industrial and logistics spaces at national level has increased by 254% since 2020 (to 267,000 sq. m vs. 75,400 sq. m in the 2010-2019 period).
The information provided by KomuniK
Romanians living abroad are the first to cast their ballots in the second round of the 2025 presidential election, with voting officially starting on Thursday, May 15, at 22:00 Romanian time, when the polling station in Auckland, New Zealand, opens its doors, the electoral authority
The Fortified Church of Apold, in central Romania’s Mureş county, will open on May 17 for a performative evening that is meant to transform the historical site into a lively space, CasApold Association, the organizers of the event, announced. The program of the evening includes community interventions, live music, candlelight tours, art installations and the […]
The weekend of the presidential elections run-off brings film and design festivals, the crowd-pleaser Night of Museums, and a Festival of Pirates in the Danube Delta.
Loud screens and noise stress young children and affect their development Sound pollution in Romanian homes affects children's learning, play, and sleep, who are more vulnerable to noise than adults Studies show that children exposed to TV for 2 hours daily are 6 times more likely to experience language development delays Renowned doctor: Experiences actually […]
Estonian cinema will take center stage at the 24th edition of the Transilvania International Film Festival (TIFF) in the Focus Estonia program, presenting a curated selection featuring both recent releases and rediscovered classics, screened in restored versions. Among the films to be screened is Moonika Siimets' The Black Hole (2024), a dark sci-fi comedy inspired […]
The ITH Group, which includes the portals Vola.ro, Fru.pl, and GoVola.com and operates in Romania, Poland, and Bulgaria, announced the direct integration of LOT Polish Airlines flights into its own platforms. The collaboration strengthens the group’s position as a regional leader in flight ticket distribution, according to its press release. This will be achieved through […]
