Victor Rachita (CBRE) joins re:FOCUS on eCommerce, Retail & Logistics 2023 as a speaker

Mihai-Alexandru Cristea 02/02/2023 | 16:31

Victor Rachita, Head of Industrial & Logistics Services, CBRE Romania, will be a speaker at BR’s upcoming re:FOCUS on eCommerce, Retail & Logistics. He will be part of the second panel of the day, dedicated to the Retail, Logistics, and Industrial sectors, during which he will explore the latest developments and new trends in the industrial property segment. Business Review sat down with him to preview the main talking points of the conference.

 

What did 2022 mean for the industrial and logistics space segment and how do you think this segment will evolve in 2023?

Record – a single word can describe the industrial total leasing activity for 2022, the best year ever recorded for logistics players. Summing 1.11 mln. sq m, the industrial transactional activity for the first time overpassed the 1.0 mln. threshold and it is with 31% higher compared with the amount concluded in 2021.

2022 placed Romania in the role of a regional hub for retail and ecommerce with 3 transactions over 50 000 sqm, and companies such as CCC, LPP, PEPCO, H&M renting over logistics space mostly in logistics developments around Bucharest. We have also registered numerous new entries in the manufacturing sector, especially in the central-western part of the country due to the well qualified workforce, geographical location, stable economic and social situation and state aid.

2023 will be an exciting year in which we expect retailers and e-commerce to maintain their momentum. In a year when we estimate that another 550,000 sqm will be added to the stock of modern industrial & logistics space, the market will look to benefit from the strong positioning of Romania both for the non-shoring strategy of many manufacturing companies and for local and regional distribution in CEE. Last but not least, local companies will consolidate their storage areas based on new volumes, lower than in 2020-2022.

 

What will be the main brakes but also the factors favouring the development of the logistics sector in Romania?

The global context, with this series of overlapping crises that influence consumption in a downward direction, may generate a possible decrease in volumes. The delay in joining the Schengen area also complicates matters. But our strategic position and the fact that we have the most competitive prices in the whole EU – occupancy costs – the price of renting logistics space, provides the minimum necessary prerequisites for the growth we all want.

Infrastructure remains an important factor in the development of the industrial/logistic sector and in the development of certain areas in Romania, and from this point of view we can only welcome the efforts made in the last period in this regard.

What comes as an encouraging sign as the 2023 forecast unfolds is that the E / N-E region places the 3rd with 18% from the future deliveries. Once overlooked by investors mostly due to underdeveloped infrastructure in the area, the region managed to attract local investors willing to create the foundation of the industrial modern stock in the area.

 

What is happening in terms of trends in the CEE markets and which of these trends will translate to Romania?

It is interesting to note first of all that we have almost the same vacancy rate for logistics projects.  The major difference derives from the fact that the rest of the CEE countries manage to attract manufacturing companies from the APAC area, and this is a weak point we need to work on as a market segment. The limitations that China has shown in recent years leading to disruptions in global supply chains have created an opportunity to benefit from the urge of companies to stockpile products and bring production capacity closer to the end customer. In order to attract more manufacturing companies from China, South Korea, Japan to Romania, they need to feel as welcome as they do in Slovakia, Serbia, Croatia and Hungary, though.

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Mihai-Alexandru Cristea | 09/03/2023 | 17:26

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