Romania ranked second in the region in terms of industrial & logistics spaces leased in the first quarter of 2024, after Poland, the uncontested leader in Central and Eastern Europe, according to a recent report by real estate consultancy company Cushman & Wakefield Echinox. The local demand surpassed that in Czechia, Slovakia, and Hungary.

Companies leased approximately 200,000 sqm of industrial and logistics spaces in Q1, with demand primarily generated by manufacturing companies, FMCG, and logistics operators.

The activity of manufacturing companies on the Romanian industrial leasing market was noteworthy at the beginning of the year in terms of the share of spaces contracted in the total transactional volume (17%) while overtaking logistics operators (10%) and FMCG companies (13%) for the first time, Cushman & Wakefield Echinox said.

Stefan Surcel, Head of Industrial Agency Cushman & Wakefield Echinox, commented: “Manufacturing companies are becoming increasingly relevant in the industrial and logistics leasing market, partly due to the nearshoring phenomenon, but also through relocations from Western Europe or even from other countries in the CEE. These companies usually operate in their own spaces, but they also require greater flexibility due to the ever-changing consumer habits, a flexibility that can be achieved by renting other premises. We believe this trend will intensify in the coming period while the ongoing infrastructure projects will open up new areas for investments in industrial projects.”

The largest transaction closed in Q1 2024 was related to a 19,000 sqm sale & leaseback of Tenneco’s spaces in Ploiesti to WDP, followed by an 11,000 sqm pre-lease by Maravet within WDP Park Baia Mare and the new lease signed by Drim Daniel Distributie in a 10,000 sqm warehouse space in MLP Bucharest West. 

Demand was mainly concentrated around Bucharest (50% of the total volume), Ploiesti (10%), and Timisoara (6%), with companies also showing interest in Iasi, Craiova, Arad, and Oradea.

When it comes to new supply, the first quarter recorded a slowdown of investments “as developers adopted a more cautious approach amid the present economic uncertainties and the decreasing number of speculatively developed projects,” the company said. Thus, only 50,000 sqm of new spaces were delivered in Q1 (compared with 100,000 sqm in the same period of 2023). 

The stock of industrial and logistics spaces reached 7.07 million sqm, with vacancy rates of 6.1% in Bucharest and 5% at the regional level.

Developers currently have under construction projects with a total area of 500,000 sqm in various cities across the country, but Bucharest, Timisoara, and Brasov remain the main destinations.

irina.marica@romania-insider.com

(Photo source: Pavel Losevsky/Dreamstime.com)