“This evolution, due mainly to developers’ approach to build projects under firm lease agreements, makes the logistics and industrial sector one of the most balanced in Romanian real estate development. Developer calibrated plans according to demand and at the same time lease activity remained at similar levels compared with past years, despite uncertainties regarding consumption, unemployment, economic growth,” said Costin Banica, Head of Industrial Department at JLL Romania.
In January-September 2020, the volume of leased industrial and logistics spaces was 16% higher than in the same period in 2019.
According to JLL data, Bucharest attracted 48% of demand in the country, or 171,000 sqm, followed by Timisoara with 76,000 sqm, Craiova with 57,500 sqm, and Arad with nearly 20,000 sqm.
The biggest volume of demand came from FMCG companies, with nearly 50% of the total (172,000 sqm), manufacturing with 17% (60,000 mp) and companies with activities in distribution and logistics with 15% (54,000 sqm).
JLL estimates deliveries on the logistics and industrial segment will total around 600,000 sqm this year, taking the stock to over 5 million sqm.
In the fourth quarter, developers are expected to deliver 180,000 sqm, nearly 80% of which in Bucharest.
Industrial and logistics stock in Romania stood at 4.87 million sqm at the end of September. Over 53% of the stock is located in Bucharest and the surrounding area.