Manufacturing companies led the industrial and logistics leasing market in Q1 2024 – The Diplomat Bucharest

Companies leased around 200,000 sq m of industrial and logistics space in Q1, with demand driven primarily by manufacturing companies, FMCG and logistics operators, according to data from real estate consultancy Cushman & Wakefield Echinox. Romania ranked second regionally in terms of T1 demand, after Poland, the undisputed leader in Central and Eastern Europe, at the same time surpassing the Czech Republic, Slovakia and Hungary.

160,000 sqm were transacted in the Czech Republic, while 109,000 and 107,000 sqm of industrial and logistics space were leased in Hungary and Slovakia, respectively.

The activity of manufacturing companies on the industrial leasing market in Romania was remarkable at the beginning of the year in terms of the share of contracted premises in the total transactional volume (17 percent), while it surpassed logistics operators (10 percent) and FMCG companies (13). percent) for the first time.

The largest transaction concluded in Q1 2024 was related to a sale & leaseback of 19,000 sqm of Tenneco premises in Ploiesti to WDP, followed by a pre-lease of 11,000 sqm by Maravet within WDP Park Baia Mare, transaction brokered by Cushman & Wakefield Echinox, and through the new lease signed by Drim Daniel Distributie in a 10,000 sqm storage space in MLP Bucharest West.

“Manufacturing companies are becoming more and more relevant in the industrial and logistics leasing market, partly due to the phenomenon of nearshoring, but also through relocations from Western Europe or even from other CEE countries. These companies usually operate in their own premises, but they also require greater flexibility due to constantly changing consumption habits, which flexibility can be obtained by renting other premises. We believe that this trend will intensify in the coming period, while ongoing infrastructure projects will open new areas for investment in industrial projects”, explained Stefan Surcel, head of Cushman & Wakefield Echinox Industrial Agency.

Demand was mainly concentrated in Romania’s large logistics hubs, namely around Bucharest (50 percent of the total volume), Ploiesti (10 percent) and Timișoara (6 percent), with companies also showing interest in Iași , Craiova, Arad and Oradea.

In terms of new supply, the first quarter saw a slowdown in investment as developers took a more cautious approach amid current economic uncertainties and a declining number of speculatively developed projects. Therefore, only 50,000 sq m of new premises were delivered in Q1 (compared to 100,000 sq m in the same period in 2023). The stock of industrial and logistics spaces reached 7.07 million sqm, with vacancy rates of 6.1 percent in Bucharest and 5.0 percent at the regional level.

Developers they currently have projects under construction with a total area of ​​500,000 square meters in various cities in the country. Bucharest, Timișoara and Brașov are the main destinations for developers, with approximately 50 percent of future projects located in these logistics hubs, while Slatina, Arad and Sibiu will also benefit in the short term from significant new premises.

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