With close to 200,000 sq. m of class A industrial supply delivered in the first half of 2021, the modern industrial stock in Romania exceeded 5.4 million sq. m.
Bucharest attracted less than half of the deliveries, which is a trend Avison Young’s experts expect to see more of. Industrial developers have plans to deliver another 450,000 sq. m of class A logistic space by the end of 2021.
For example, in 2020, two thirds of the deliveries of new stock occurred in the second half of the year. The developers appear to continue to secure plots of land for development.
The pipeline for the rest of 2021 is still concentrated in the Bucharest area, but Timisoara will also attract an important share. During Q1 2021, there were approximately 350,000 sq. m of modern industrial and logistic space leased, which equates to the first half of 2020.
The demand coming from manufacturing activities registered a surge in the first half of 2021, as well as from retail – from 13% in 2020, to 18% in the first half of 2021. As expected, the demand from eCommerce is increasing exponentially – from about 3% in 2020 to 9% in H1 2021, the Avison Young report shows.
Bucharest attracted 66% of the demand in H1 2021, a decrease from the 72% in 2020. Deva, Timișoara and Pitești also attracted significant demand. Overall vacancy in Romania is at 6.0%, while vacancy in Bucharest has reached 7.1%, the Avison Young report shows.