Report: Demand for logistics and industrial spaces shows 20% decline YoY in Romania
The demand for logistics and industrial spaces reached 575,000 sqm during the first 9 months of this year, a decrease of 20% compared with the same period of 2023, according to a report by real estate consulting company Cushman & Wakefield Echinox.
The figures for Q3 2024 reveal that 164,000 square meters were contracted, a level comparable to the volume recorded in the same period last year. However, the transactional volume is on a slightly decreasing trend compared with the second quarter when 213,000 square meters were contracted, but also with the first three months of the year when the total volume reached 196,900 square meters.
Renewals accounted for 42% of the transacted volume, highlighting the tendency of tenants to carefully evaluate existing options and maximize cost efficiency of a possible relocation.
Bucharest remains the preferred destination for companies in search of industrial and logistics spaces, having a share of almost 50% of the Q1-Q3 transacted volume, while Timisoara, Ploiesti, and Cluj have been the most active regional markets.
Developers continued to deliver new projects to meet market demand, with over 170,000 square meters of new space finalized in Q3 alone.
New deliveries for this year are projected to total approximately 500,000 square meters, maintaining a similar pace to that of 2023.
“With a very high occupancy rate of over 95% and a cautious approach to new projects development, Romania’s logistics sector continues to be a vital and healthy driver of economic growth and a barometer of industrial activity. The outlook is optimistic, as Romania holds strong medium and long-term development potential in both distribution and production sectors, the latter having shown an upward trend over the past three years,” said Rodica Tarcavu, Partner Industrial Agency Cushman & Wakefield Echinox.
Notable transactions in the third quarter included a 6,000 sqm lease by distribution company Alliance Healthcare at WDP Park Dragomiresti, and a 9,000 sqm lease at CTPark Pitesti by an American company specializing in safety and lighting systems manufacturing.
(Photo source: Pavel Losevsky | Dreamstime.com)
