Bucharest metro traffic doubled in March after the pandemic related restrictions were lifted; employees are gradually returning to the office
Bucharest, August 2019: The industrial and logistics market in Romania is currently enjoying its best period in history, both in terms of supply and demand, doubling its total stock during the past five years, according to the data from the Cushman & Wakefield Echinox real estate consultancy company.
The stock of industrial and logistics spaces in Romania reached a level of 3.61 million square meters at the end of H1 2019, with over 85% of these spaces being located in Bucharest, Timișoara, Ploiești, Cluj-Napoca and Pitești, cities which are all very well connected to the national motorway network.
Bucharest currently has a stock of industrial and logistics spaces of around 1.8 million square meters, with a share of 50% in the total national stock, the capital city being followed by Timișoara (500,000 sq m), Ploiești (350,000 sq m), Cluj-Napoca (280,000 sq m) and Pitești (235,000 sq m).
In the first six months of the year, new industrial and logistics spaces with an area of 200,000 square meters were delivered, with Bucharest accounting for 57% of the total (115,000 sq m). With respect to the second part of the year, new projects totaling 300,000 square meters are expected, developers thus maintaining the impressive expansion rate that has been the main characteristic of the industrial and logistics market during the last five years.
Rodica Târcavu, Partner, Industrial Agency, Cushman & Wakefield Echinox: “The first semester of 2019 has been a dynamic one in terms of leasing transactions of industrial and logistics spaces, totaling 235,000 square meters. Bucharest remains the most attractive location, both in terms of total stock and the transactions concluded. We have also noticed that important transactions were closed in Slatina, where Pirelli will expand its production area by 62,000 square meters and in Oradea, a city where the supplier of auto components Sogefi will expand its activity. These transactions highlight both the potential of such cities that were not among the top destinations sought after by major developers and tenants and also of the market in general, this positive trend being expected to continue in the coming years.”
The vacancy rate at national level is of around 6%, the level of prime headline rents being on stable trend, standing between 3.7 and 4.1 euro/ sq m/ month, Romania thus being one of the most competitive markets in Europe in terms of occupancy costs.
Considering the development plans announced by the major players in this market, it is expected that the stock of industrial and logistics spaces in Romania will exceed the threshold of 4 million square meters at the beginning of 2020.
Cushman & Wakefield Echinox is one of the largest real estate consultancy companies in the local market and exclusive affiliate of Cushman & Wakefield in Romania, owned and operated independently. The team of over 60 professionals and collaborators offers a full range of services to investors, developers, owners and tenants in all segments of the real estate market. .
Cushman & Wakefield, one of the global leaders in commercial real estate services, with 51,000 employees in over 70 countries and $ 8.2 billion in revenue, provides asset and investment management consulting services, capital markets, leasing, administration properties, tenant representation, design and evaluation services. For more information, visit www.cwechinox.com