The growth was fueled by consumption, given that 40% of the demand came from retail and e-commerce companies.
Bucharest accounted for 65% of the total industrial and logistic spaces leased last year, with over 300,000 sqm, followed by Timisoara – 74,200 sqm, and Cluj – 30,000 sqm.
In 2016, retailers leased logistic spaces totaling approximately 186,000 sqm, on the backdrop of the continuous growth of their stores network.
Logistic and production companies leased approximately 140,000 sqm, namely one third of the total demand, while producers in the automotive industry closed contracts totaling 72,000 sqm.
“Foreign direct investments will most likely exceed EUR4 billion in 2016 given that FDI already reached EUR3.9 billion at the end of November, a record level in the last eight years. Consumption also grew 10% last year, fueled by the VAT rate cut and the salary hikes. All these elements contributed to the all-time high registered by the industrial and logistic space demand,” says Cristina Pop, Associate Director, Head of Industrial Agency JLL Romania.
New contracts accounted for over 70% (over 340,000 sqm) of the total space leased in 2016, while the rest were contract relocation or renewals.
According to JLL, Romania will continue to remain attractive for companies in 2017 as well, due to the economic trend and especially consumption, which will result in significant demand from retailers, e-commerce and logistic companies.