“In 2011, the industrial market was characterized by stability, with only 10,000 sqm delivered in Bucharest, within a built-to suit facility. Compared to the previous year, demand for industrial and logistic space decreased by 10%, a take-up level that is comparable with the one registered in 2004,” the report notes.
According to data previously put forth by Colliers, developers completed only one logistics project in 2010, with a surface of 12,000 sqm. Thus, after three years, 2006-2008, where industrial and logistics projects delivered cumulated 650,000 sqm, the past three years saw a drastic decrease in deliveries, to just 50,000 sqm between 2009 and 2011.
As such, logistics and industrial space in Bucharest stays at a surface of some 920,000 sqm, and 2011 was the weakest year in terms of new deliveries on this segment.
“As insecurity still looms over the economic circumstances, evolution of the industrial market in 2012 will be similar to the previous year. As most important developers present on the market already have additional land capacity for further developments, transactions with land plots for industrial use will be scarce,” the company said.
In addition, as current rental agreements expire, there will be an increased interest from owners to maintain their current tenants.
Regarding rental activity, realty agents traded over 76,000 sqm in Bucharest in 2011, with one third of deals referring to renewals and renegotiations. Compared to Colliers data from 2010, which mentioned an overall traded surface of 86,000 sqm on this segment, last year there was a decline in the total surface rented.
Bucharest remains Romania’s main logistic hub on all manufacturing segments. Although pressure on rents persists, most tenants keep focusing on the incentives that come with quality space at a fair rent.
“Similar to previous years, the majority of the tenants opted for locations in the Western outskirts of Bucharest. Out of the total demand, half was driven by logistic operators while another significant part came from existing tenants that either relocated or extended their space”, said Viorel Opait, manager of the Industrial Agency of Colliers International Romania.
Colliers brokered the rental of more than 44,000 sqm last year, including renegotiations and renewals. New contracts signed through Colliers last year cover a surface of 35,000 sqm. Thus, the company has achieved a 70% market share in Bucharest.