In the first quarter of 2024, Romania's industrial and logistics market experienced a notable increase in lease agreements, amounting to approximately 200,000 square meters. This demand was primarily fueled by manufacturers, FMCG companies, and logistics operators, according to a report by Cushman & Wakefield Echinox.
Regional Market Rankings and Sector Contributions
Romania emerged as the second-highest in the region for industrial market demand, following Poland and surpassing Czechia, Slovakia, and Hungary. Manufacturing firms led the leasing activity with a 17% market share, overtaking logistics and FMCG sectors, which accounted for 10% and 13% respectively.
Significant Transactions and Market Dynamics
The largest transaction of the quarter was the 19,000 square meter sale and leaseback of Tenneco's facilities in Ploiești to WDP. Stefan Surcel, Head of Industrial Agency at Cushman & Wakefield Echinox, stated, "We anticipate this trend will grow stronger in the near future, as ongoing infrastructure projects will create new opportunities for industrial investments."
Concentration of Demand in Key Logistics Hubs
The bulk of the demand was concentrated in Romania's major logistics hubs. Bucharest led with 50% of the total volume, followed by Ploiești (10%) and Timișoara (6%). There was also rising interest in other cities such as Iași, Craiova, Arad, and Oradea.
Supply and Development Trends
Only 50,000 square meters of new industrial and logistics space were delivered in Q1, a significant drop from the 100,000 square meters delivered in the same period in 2023. The total stock of industrial and logistics space in Romania has reached 7.07 million square meters, with vacancy rates standing at 6.1% in Bucharest and 5.0% across other regions.
Currently, developers have 500,000 square meters of industrial projects under construction in various locations across the country, indicating ongoing growth and robust investment in Romania's industrial and logistics markets.
Conclusion
Romania's industrial and logistics sector is witnessing substantial growth, driven mainly by the manufacturing industry. With significant lease transactions and continuous infrastructure development, the market is set for further expansion, presenting new investment and development opportunities.
