Retailers, logistics and delivery companies leased over 300,000 square meters of industrial space in the third quarter, accounting for 50% of the total and double compared with 2015.
A significant trend in the first three quarters of the year was the evolution of retail towards omnichannel services. Retailers focus on brick and mortar stores but also invest new resources to increase online sales and expand their logistical capacity.
“The evolution of retail towards omnichannel services generates increased demand for logistical space. The fourth quarter, with Black Friday sales and winter holidays, generate over 30% of online retail sales and expanding logistical capacities influence the buying experience and retail sales,” said Carmen Ravon, Head of Retail and Land, Omnichannel Real Estate Solutions, CBRE Romania.
In the first nine months of 2020, industrial space traded in Romania totaled 612,000 sqm, up 70% compared with the period average in the past three years, CBRE research showed
“Nearly half of transactions with industrial spaces in the first nine months was generated by retail companies. Although we see more transactions from the non-food sector, we still expect large transactions from companies in FMCG in various regions of the country,” said Andrei Jerca, Head of Industrial Services, CBRE Romania.
The average traded industrial area grew to over 8,000 sqm in 2020, confirming tenant interest for large warehouses and outlining the next step towards securing timely and efficient merchandise deliveries: last mile logistics and in-city logistics.
Industrial stock in Romania reached 4.84 million sqm at the end of September, with 389,000 sqm delivered in the first nine months of 2020. Around 260,000 sqm of industrial stock is expected to be delivered in the fourth quarter and the total stock is seen topping 5 million sqm.
“nearly half the existing industrial stock is concentrated in Bucharest but, looking at projects under construction, there is increased interest for the west and northern regions. Over 70% of new projects are in these areas from developers CTP, WDP, Element Development and Global Vision. The central region is also becoming attractive and we see new developments from VGP,” said Jerca.