Bucharest metro traffic doubled in March after the pandemic related restrictions were lifted; employees are gradually returning to the office
Bucharest, February 2021: The local logistics and industrial market has accelerated its expansion in 2020 both in terms of demand, which approached the 1 million square meters threshold, and in terms of deliveries of new spaces, which reached a surface of 649,000 square meters, both indicators reaching new records, according to the the real estate consulting company Cushman & Wakefield Echinox.
Unlike other segments of the real estate market, the logistics sector has benefited from the global context through a significant increase in the need for storage warehouses. This demand was mainly generated by the retail, e-commerce and FMCG sectors, with companies looking to maximize the operational efficiency and sales volume by shortening supply chains and delivery time to final consumers.
Profi, Carrefour, Selgros, IKEA, Brico Depot, XXXLutz, Mobexpert, Decathlon, LPP or Bebe Tei are just some of the retailers that signed relevant leasing contracts in 2020, along with other major online players such as Notino, Boutique Mall, epantofi.ro, elefant.ro or mobilier1.ro. Moreover, the retail and e-commerce companies rented spaces with a total area of 454,000 square meters, with a market share of 46% in the traded volume. Other active sectors were logistics operators (14%), automotive (11%) and the pharmaceutical industry (8%).
Bucharest attracted 65% of the transactional volume last year, while Timișoara reconfirmed its position as the most active regional market, with almost 100,000 square meters transacted.
Rodica Târcavu, Partner, Industrial Agency, Cushman & Wakefield Echinox: “In this dynamic, constantly changing and challenging situation, we built an important portfolio of tenants, such as: Mega Image, TNT / Fedex, AD Pharma / Dr Max, Notino, Fildas, Danfoss, Bebe Tei, Nunner Logistics, whom we thank for their trust and excellent collaboration. From the developers’ perspective, we have strengthened our relationships with our partners, prominent names in the market, such as CTP, WDP, VGP, Logicor and Global Vision, who have supported us in the trading process.”
Andrei Brinzea, Partner, Land & Industrial Agency, Cushman & Wakefield Echinox: “2021 promises to be an equally dynamic and consistent year in terms of demand and new logistics projects, given that developers are already building spaces with a total area of approximately 450,000 square meters. Bucharest remains the most active market, around 60% of the new deliveries being concentrated around the Capital. Developments continue in key cities, with established economic and logistical potential, such as Cluj, Timisoara, Braşov, Ploieşti, Craiova or Sibiu.”
Cushman & Wakefield Echinox is a leading real estate consulting company on the local market and the exclusive affiliate of Cushman & Wakefield in Romania, owned and operated independently, offering a full range of services to investors, developers, landlords and tenants. With a traded volume of almost 80,000 square meters, 2020 was one of the best years for the logistics department of Cushman & Wakefield Echinox, which assisted customers in choosing new distribution centers in Bucharest or in the country.
Cushman & Wakefield, one of the global leaders in commercial real estate services, with 53,000 employees in over 60 countries and € 8.8 billion in revenue, provides asset and investment management consulting services, capital markets, leasing, properties administration, tenant representation, design and evaluation services. For more information, visit www.cwechinox.com