A slowdown of investments in warehouse spaces was observed in Q1 2023, only 100,000 sq. m of new spaces being completed, below the Q1 average of the last two years, an average of 180,000 sq. m respectively.
The industrial and logistics stock reached 6.66 million sq. m, with vacancy rates of 5.1% in Bucharest and 6.6% at regional level.
Logistics operators accounted for approximately 50% of the Q1 2023 demand in Romania, with a significant activity also coming from manufacturing and FMCG companies.
Net take-up (excluding renewals) amounted to around 200,000 sq. m, with more than 50% of it being related to projects which are due to be delivered in 2024.
The demand was mainly concentrated around the major logistics hubs in the country, namely Bucharest (32% of the total volume) and Timisoara (25%), while tenants also showed interest towards Pitesti or Slatina.
WDP, VGP and Globalworth – Global Vision were the most active developers at the beginning of this year, as they expanded their portfolios with new projects in Bucharest, Brasov, and Targu Mures.
Developers plan to complete new projects with a total leasable area of 400,000 sq. m across the country by the end of 2023, as Bucharest remains the preferred destination, with around 50% of the projects.
The warehouse market in Romania still lags significantly behind the Czech Republic (11 million sq. m), with Poland being the indisputable leader in the region, with a stock of nearly 29 million sq. m.
