DTZ Echinox: Industrial and logistics spaces from regional cities overpassed Bucharest's stock

The modern stock of industrial spaces and logistics from outside Bucharest reached 1.3 million sqm at the end of the first semester of 2016, overpassing Bucharest with almost 30 percent. Western Romania has the greatest stock outside Bucharest (33 percent), followed by the Southern zone (31 percent) and the Northern- Western region (18 percent).

During the period 2014-2016, the demand for spaces outside the Bucharest was 35 percent higher than in Bucharest.

The biggest developments of industrial and logistics spaces are in Timisoara (300,000 sqm) and Ploiesti (over 250,000 sqm), both amounting to over 50 percent out of the national stock (without Bucharest). In the last two years and a half, the volume of transactioned spaces outside Bucharest was approximately 400,000 sqm. The Western region, although has the smallest number of inhabitants, attracted 45 percent from demand, with a total of 175,000 sqm.

The auto parts industry is leader on the production market, having 60 percent of the total private investments.

In Bucharest, the demand overpassed 250,000 sqm in the same period, coming from logistics segment, retail and online commerce. In the first half of this year, over 80,000 sqm were rented for the projects developed by the big players- P3, CTP and Immofinanz (Logicor).

The most attractive cities for new entrants companies or for those that are expanding the production or storage units are: Cluj, Sibiu, Brasov, Timisoara and Ploiesti.

“There’s an effervescence of the industrial sector, from the producers’ retailers’ and logisticians’ perspective demand, in active search for spaces. This optimism for the Romanian market comes as a response to the positive economic environment, available and qualified workforce, as well as to the future development of the country, In parallel, the developers had an increasing interest in the areas of Bucharest and other cities, to meet these dynamic demands, having an open attitude even towards speculative projects, “ says Rodica Tarcavu, senior broker industrial Agency DTZ Echinox.

„Until the end of 2017 private investments in Center and South-Western zones are expected, the auto sector still being leader,” says Mihaela Galatanu, head of research DTZ Echinox.

Georgiana Bendre