Romania’s industrial and logistics real estate market continued to grow in 2024, with deliveries totaling approximately 400,000 sqm, bringing the total stock to 7.4 million sqm, according to the annual report published by Colliers. Interest from both international and local investors has increased, and major transactions, such as the expansion of retailers LPP and Deichmann, confirm the country’s position as a strategic distribution hub for Southeastern Europe. 

Colliers says the market remains attractive in the long term due to a competitive labor force and ongoing infrastructure modernization. However, in the short term, economic and political uncertainties could slow the pace of expansion.

According to preliminary estimates, 2024 ended with lease agreements covering approximately 620,000 sqm, a decrease of around 20% compared to the near-record level reached in 2023. 

However, this result does not fully reflect the dynamics of the local market, Colliers consultants emphasize, as it includes only publicly reported transactions - either disclosed by local research offices or announced publicly by companies or in investor reports of listed firms. In reality, a significant portion of leasing activity, particularly contract renewals and other unreported direct transactions, could account for at least 20-30% of the total volume.

“If before the pandemic the annual leasing volume was below 500,000 square meters, the 2024 result confirms a growing market. Although CTP and WDP remain the leaders, controlling two-thirds of the total stock, we are also seeing increased activity from other developers. The entry of renowned German developers such as Garbe (Germany) and Hillwood (US) into the market, along with increasing investments from local players, indicates a positive dynamic and solid growth prospects,” said Victor Coșconel, Partner | Head of Leasing | Office & Industrial Agencies at Colliers.

“Additionally, for the second consecutive year, a third of the leased spaces were allocated to production, compared to just 10-15% in previous years, reflecting major investments in the industrial sector. However, many manufacturing companies prefer to own the spaces in which they operate, a trend that is shaping the long-term structure of the market,” he added.

Over half of the industrial and logistics space leases were completed in Bucharest and its surrounding areas. Still, the share is significantly lower than the decade-long average, highlighting the rapid development of regional centers that are becoming increasingly attractive for industrial and logistics operations. 

Although Bucharest remains the primary destination for this sector, Colliers consultants estimate that its share will decline in the long term as other cities attract more investors and logistics operators.

The vacancy rate remains low, at around 5% nationally, limiting tenants’ negotiating power, especially given the limited number of speculative developments, Colliers also said. Rents have stabilized, and a built-to-suit (BTS) warehouse in a prime location is leased for EUR 4.5–5 per sqm in Bucharest and major cities. By comparison, before 2021, rents were below EUR 4 per sqm, reflecting a significant market correction.

The largest transaction of the year was the expansion of fashion retailer LPP, which leased 42,000 sqm of warehouse space in northern Bucharest, increasing its total footprint to over 130,000 sqm, making it one of the largest tenants in Romania.

Also, footwear retailer Deichmann pre-leased a 20,000 sqm warehouse in Bucharest, which will be transformed into a regional distribution center. Plus, auto parts manufacturer Federal Mogul signed a sale & leaseback agreement with WDP for its 19,000 sqm factory in Ploiești.

Infrastructure modernization is another key advantage in driving economic growth and the development of the industrial and logistics sector, Colliers noted. After a record year in 2024, with 1,200 kilometers of express roads delivered, Romania could reach 2,000 km by the end of the decade. 

Currently, over 600 km of highways and express roads are under construction, with another 700 km in the planning phase. The completion of essential segments, such as Sibiu-Pitești and Iași-Târgu Mureș, will enhance connectivity and attract new investments.

irina.marica@romania-insider.com

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