Most of the demand came from logistics, transport and distribution companies, which leased a total of 290,000 sqm, or more than 55% of the total. Retailers were also among the most active companies last year, with area contracted of over 110,000 sqm, 22% of the total volume rented in 2017.
Approximately 100,000 sqm have been leased for production activities, but it is worth to mention that these companies usually own their production facilities and thus the share of rentals of such spaces does not reflect the dynamics of this sector.
Almost 80% of the total surface rented in 2017, namely 430,000 sqm, represents net demand – new lease agreements, extensions and pre-lettings, while the rest are contract renewals and relocations.
“2017 showed very well at the level of macroeconomic indicators: foreign direct investment has increased to a record level, GDP has had an unexpected upward trend, driven by consumption (2017 is the second year with an increase of over 10% in consumption). This picture has encouraged market development even more than we anticipated earlier last year,” said Costin Bănică, Associate Director, Head of Industrial Agency at JLL Romania.
The regional structure of demand shows that Bucharest is in the top of the preferences, with 275,000 sqm (53% of the total), followed by Timisoara – 76,200 sqm, Pitești – 50,000 sqm, Roman – 32,000 sqm, Cluj – 25,250 sqm, and Ploiesti 24,700 sqm.
“The market is still captive in several areas of the country – Bucharest, West and Center. With a few exceptions, the demand and the new offer have focused last year on the locations that are already development poles. From this point of view, there is an imbalance in the market, which will be maintained as long as the problems related to the availability of labor and infrastructure,” said Banica.
In 2017, developers delivered projects amounting to almost 360,000 sqm, out of which 242,000 sqm (67% of the total) in Bucharest and Ilfov. About 40,000 sqm were delivered in Cluj, and 34,000 sqm in Timisoara. Roman recorded the first development of modern space after WdP completed Profi warehouse, with an area of 33,500 sqm.