People of Cushman & Wakefield Echinox
Bucharest, November 2024: The demand for logistics and industrial spaces reached 575,000 sq. m during the first 9 months of this year, a decrease of 20% compared with the same period of 2023, according to the Cushman & Wakefield Echinox real estate consulting company. The new demand accounted for 86% of the transacted volume.
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.
Notable transactions in the third quarter included a 6,000 square meter lease by distribution company Alliance Healthcare at WDP Park Dragomiresti, and a 9,000 square meter lease at CTPark Pitesti by an American company specializing in safety and lighting systems manufacturing.
Developers continued to deliver new projects to meet market demand, with over 170,000 square meters of new space finalized in Q3 alone. Among these, a significant expansion of 53,500 square meters at VGP Brasov stands out, set to become the primary distribution center for Inter Cars, a major automotive parts supplier.
In total, the first nine months of 2024 saw the delivery of 275,000 square meters of new logistics and industrial projects, with an additional 430,000 square meters currently under development. New deliveries for this year are projected to total approximately 500,000 square meters, maintaining a similar pace to that of 2023.
Rodica Tarcavu, Partner Industrial Agency Cushman & Wakefield Echinox: “Even in a context of decreased demand compared to the previous year, Romania’s logistics and industrial space market remains resilient, supported by a substantial volume of new leases and expansion projects. 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.”
