Romania’s modern industrial and logistics facilities stock reached 6.3 million square meters at the end of last year, 11% up y/y and the third largest I&L market among 12 of the biggest CEE economies, according to Colliers’ latest regional report.

Developers have another 650,000 square meters of modern I&L under construction, according to the report.

“The limited supply allows the stock to grow sustainably by about 10% per year in the medium term, assuming no major economic corrections, though faster growth spurts are possible and likely in certain years,” according to Victor Coșconel, Head of Leasing / Office & Industrial Agencies at Colliers.

In addition to the undersupply that Romania had relative to the economy’s fast pace of growth, Colliers consultants also attribute the strong growth of the market to the fact that Romania is seen as a regional distribution hub by companies targeting the SouthEastern part of Europe, with a few even setting up a dealership to target larger areas. Re-shoring/friend-shoring are also starting to prop up demand.

The consultancy firm points to the growth potential of the regional cities (compared to Bucharest and several other industrial centres) based on the ratios in peer countries Poland and the Czech Republic, where the shares of the I&L market in the capital cities are close to the capital cities’ shares in the GDP.

In Romania, Bucharest and other industry-intensive regions, such as Transylvania or Prahova and Dolj, account for the bulk of the modern industrial & logistics (I&L) stock.

iulian@romania-insider.com

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