Modern industrial stock in Romania to reach 5.5 million sqm this year

The modern stock of industrial spaces in Romania has exceeded the threshold of 5 million sqm in 2020 and will reach about 5.5 million sqm this year, with over 60 percent of the area under construction being already pre-leased, according to the Romania Industrial Destinations research report, launched by CBRE, the leader of the real estate consultancy market.

“2021 has all the prerequisites to be an excellent year for the industrial property market in Romania, as 2020 proved to be a record year with over 930,000 sqm traded. Developers are investing in different areas of the country: from the well-known area of Timiș to Brașov and Bacău, which are beginning to attract growing interest, benefiting from land with potential for development and available labour,” said Răzvan Iorgu, Managing Director, CBRE România.

Source: CBRE Research

CBRE has recently advised the largest renewal in the last years, specifically the renewal of the 85,000 sqm contract by the retailer Carrefour within the industrial park P3 Bucharest Park. Among the largest transactions concluded in 2020 are Ikea (70,000 sqm in  CTPark Bucharest West) and Profi (58,500, respectively 57,000 sqm in WDP Timișoara and WDP Craiova).

Nationally, there is approximately 400,000 sqm of industrial spaces currently under construction, over 60 percent of the area being already pre-leased, according to CBRE Research data. Therefore, after the stock of industrial spaces in Romania increased by over 570,000 sqm in 2020, the development activity continues to be intense this year as well, driven by the degree of vacancy of only 8 percent nationally.

With an existing stock of 2.3 million sqm Bucharest and its proximities, respectively Ilfov, continue to attract the largest volume of new developments, over 140,000 sqm being currently under construction. Next, with a stock of 1.2 million sqm, comes the northern and northwestern region of the country, which includes Timisoara, Arad and Cluj-Napoca. In this region, the developers have approximately 130,000 sq m under construction, of which over 100,000 sqm are in Timiș county, according to the Romania Industrial Destinations report.

“Timișoara and Arad continue to attract the attention of companies who need logistics spaces, enjoying developed infrastructure and easy access to Bucharest and to the northern and northwestern borders of the country. We are discussing with many companies, including from the retail industry and related fields, who are interested in expanding or moving their storage facilities in this area”, explained Daniela Gavril, Head of Research, CBRE România.

Another dynamic area in terms of new projects in the central region of Romania, which includes cities such as Deva, Sibiu, Târgu-Mureș and Brașov, where there is a stock of circa 670,000 sqm that will increase by 10% this year alone, of which around 15,000 sqm are under construction in Brașov.

Eastern and northeastern regions of Romania, with destinations such as Bacau and Iasi, have recently appeared on the radar of investors in the industrial sector, with benefits such as low labour costs, limited competition and a steady supply of land available for development, as specified by the Romania Industrial Destinations report.

Romania has seen a fast-paced development of the industrial market in the last five years, the stock doubling its volume during this period. However, with only 260 sqm of industrial space per thousand inhabitants, our country is below the regional average. In contrast, Poland has an average of 510 sqm per thousand inhabitants and the Czech Republic, 840 sqm per thousand inhabitants. In the next 5 years, CBRE data indicate an increase in the stock of industrial spaces by over 50 percent, up to 8 million sqm, currently, the developers having almost 400,000 sqm of industrial spaces under construction.