2023 was another strong year for the industrial and logistics market, as the segment registered a consistent activity both in terms of supply and demand. The total annual take-up surpassed 1 million sq. m, in line with the levels reported in the 3 years beforehand, with almost 300,000 sq. m being transacted in Q4. The new demand was the main driver of the overall leasing activity, accounting for 66% (672,000 sq. m) of the 2023 gross take-up. As a consequence, the share of new demand in the total gross take-up decreased in 2023 when compared with 2022 (85%).
The largest transaction closed in Q4 2023 was related to a 20,000 sq. m pre-lease by Continental within VGP Park Timisoara, followed by the new lease agreed by Mediapost Hit Mail for a 19,000 sq. m warehouse space in Chitila Logistics Park in Bucharest and by a 19,000 sq. m renewal of Yusen in CTPark Bucharest. Bucharest attracted 48% of the total take-up in 2023, with Timisoara (121,600 sq. m) being the only other location with a demand exceeding 100,000 sq. m throughout the year. Logistics and distribution operators were the most active players on the market, with 300,000 sq m. of warehouse spaces being leased, followed by automotive (106,000 sq. m), retail, e-commerce and FMCG companies with 93,000 sq. m and pharma (41,000 sq. m).
More than 174,000 sq. m of industrial & logistics spaces were completed in Romania in Q4, with the annual development activity reaching 452,000 sq. m. As a result, the modern stock of such spaces exceeded 7 million sq. m across the country at the end of the year. The development activity slowed down in 2023 compared with 2022, when developers delivered new projects with a cumulative area of 834,000 sq. m.
PRICING: Slight rental upward movements
The prime headline rents in Bucharest and in the main industrial & logistics destinations in Romania slightly increased at levels ranging between €4.30 – €4.70 / sq. m / month in Q4 2023, an upward trend that is expected to continue going forward. Speculative development is due to slow down, partly as a result of the developers’ cautious approach aimed at preventing market oversupply following the new demand deceleration. Challenges such as higher financing costs, increasing yield levels and difficulties in securing capital for development led to less deliveries of new spaces in 2023.
