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Insights | PROPERTY TIMES ROMANIA H1 2014 INDUSTRIAL MARKET
PROPERTY TIMES ROMANIA H1 2014 INDUSTRIAL MARKET
- Romania’s total stock of modern industrial and logistics spaces at the end of H1 2014 is of 1.8 million sq. m. Bucharest accounts for 53%, with 950,000 sq. m. Outside Bucharest the largest cities in terms of modern warehouses are Ploiesti, Timisoara, Brasov, Pitesti, Arad and Cluj Napoca.
- Total leasing activity in the first six months of 2014 was of 89,000 sq. m. Take-up amounted to 61,000 sq. m, 46% being registered in Bucharest (34,000 sq. m transacted). The average deal size was of 3,500 sq. m and the most active companies were from manufacturing/industrial sector, followed by logistics, automotive and retail.
- The average vacancy rate for logistics and industrial spaces in Romania is of 8%. Bucharest continues to register a vacancy rate above country’s average, situated around 10%. The average vacancy rate outside Bucharest at the end of H1 2014 was of 6%. Cities such as Cluj, Brasov, Pitesti and Oradea have a vacancy rate close to 0%.
- There were no major changes regarding the rental level during the first six months of 2014. Prime headline rents for modern logistics warehouses are situated between € 3.6 – 3.9 /sq. m/ month. The net effective rental level is lower by 10 – 20%.
