In the first nine months of 2020, the volume transacted increased to 581,000 sqm, higher by 94% than in the same period in 2019.
Capital Bucharest attracted 65% of the demand and the western city of Timisoara attracted nearly 13%, with the two markets being the biggest and most active industrials and logistics hubs in Romania.
“We noticed a fluidity and a highly dynamic activity of the logistics segment, in the context in which the existence of stocks as close as possible to outlets and the fast deliveries to end consumers are essential in maximizing sales. The expansion strategy of retailers or online operators and the consolidation of companies in the sectors of FMCG, logistics and courier services were correlated with the growing demand and are meant to prevent potential deadlocks in distribution channels against the backdrop of restrictions over the past eight months”, said Rodica Tarcavu, Partner Industrial Agency, Cushman & Wakefield Echinox.
Given the growing demand, real estate developers remained highly active and delivered warehouses with a total surface area of 356,000 sqm between January and September 2020, up 27% on the year.
Approximately 75% of the new spaces were put into use around Bucharest.
Thus, while IKEA, through logistics operators Maersk and IB Cargo, chose to develop a regional distribution center of 75,000 sqm, within the CTPark Bucharest West park located at km 23 on A1 highway, Polish fashion retailer LPP is doubling the area of the distribution center within WDP Park Stefanesti, in northern Bucharest, where it leased an additional space of 22,000 sqm.
Romania’s logistics and industrial space stock amounts to some 4.3 million sqm, half of which is located around Bucharest. Reference rents remained stable in 2020, ranging between EUR3.75 to EUR4/sqm/month. Dutch-based CTP and Belgium’s WDP are the biggest players, with a combined market share of approximately 50%.