Demand for industrial space in Romania set a new record last year

Demand for industrial space in 2022 came mainly from retail, logistics, distribution of consumer goods, and e-commerce

In 2022, total demand for industrial space in Romania exceeded the record set the previous year by 15.6%, reaching almost 1.17 million sqm leased. In the same period, net demand increased by 28.7% to almost 935,500 sqm.

In the last quarter of 2022, total demand for industrial space amounted to 370,000 sqm, down by 23.5% compared to Q4 2021. Net demand amounted to 310,000 sqm, also down by 7.3% compared to Q4 2021.

Demand for industrial space in 2022 came mainly from retail (21.5% of the total), logistics (13.4%), distribution of consumer goods (7.2%) and e-commerce (6.2%).

Deliveries of industrial space also reached a record level in 2022, rising to almost 875,000 sqm, 58% more than in 2021. Almost 270,000 sqm were completed in Q4 alone.

Deliveries of industrial space will remain at a fairly high level in 2023, with developers planning at least 510,000 sqm.

Against the backdrop of the record delivery volume, the vacancy rate increased at the country level from 3.6% in Q3 to 4.4% in Q4, and in the Bucharest region from 4.2% in Q3 to 5.3% in Q4.

Rents in Q4 remained at the same level as in the previous quarter, with the prime rent (for the best spaces in the market) remaining at 4.25 euro per sqm per month. Rent increases are possible in 2023 amid high inflation.

SEE ALSO: Mega Company gets EUR 20.6 million financing from Alpha Bank Romania

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