The logistics and industrial market in Romania has become increasingly strong recently, with average stock growth of around 15-20% per year, according to the recent ExCEEding Borders I&L report released by Colliers.
Romania’s modern industrial and logistics facilities stock reached 5.6 million square meters at the end of 2021, which represents the third largest I&L market among 15 of the biggest CEE economies.
Bucharest accounts for roughly half of the Romanian I&L stock, but the rapid rise in regional cities over the past decade has given way to increased opportunities also in other parts of the country.
Underscoring this aspect is the fact that in other markets with a developed regional economy and where geographical distances are higher, the capital’s share is much lower.
For instance, Warsaw accounts for less than a quarter of Poland’s total modern warehousing stock, whereas Prague represents one third of Czechia’s.
Vacancy for prime warehouse spaces remained in single-digits, mostly around 6% on average, which is slightly above the average of CEE-15.
Prime headline rents in Romania were also quite static in recent years on account of robust competition on the supply side, between 3.5 – 3.9 euro per square meter, which is one of the lowest levels in CEE-15.
Overall, the total I&L stock for the CEE-15 region has grown to exceed 50 million square meters, with 20 million square meters situated in and around the 15 capital cities markets.
Poland maintains the largest I&L market and is approaching the 25 million square meters mark.