C&W Echinox: Demand for industrial and logistics spaces increased by 50 percent in the first quarter

The leasing of industrial and logistics spaces increased by 50 percent in the first quarter of 2022 compared with the same period of last year, exceeding the 300,000 square meter threshold, thus creating the premises for a new record year in terms of demand for this type of spaces, according to the Cushman & Wakefield Echinox real estate consultancy company.

This demand in the first quarter maintains the positive evolution of the industrial and logistics segment from the last two years, as more than 85 percent of the transactional volume between January and March 2022 pertained to new spaces and only 15 percent represented renewal of existing contracts.

Retail and e-commerce companies have been the most active, with 35 percent of the total leased space, followed by logistics and distribution and automotive with shares of 15 percent and 10 percent respectively of the total contracted area.

In terms of new supply, the first quarter was marked by a significant increase, supported both by the positive evolution of demand, and on also by the higher temperatures during the winter. Therefore, almost 180,000 square meters of new spaces were delivered in Q1, a significant increase compared with Q1 2021 when only 30,000 square meters were completed.

CTP, WDP and Globalworth-Global Vision delivered the most important projects in the analyzed interval, in Bucharest, Călan (Hunedoara county) and Constanța. The vacancy rate was of 4.7 percent in Bucharest and of 3.8 percent at national level.

“The industrial and logistics market is going through its best period in history despite the complicated economic, social and geopolitical context. Transformations in retail, the development of e-commerce, the concern for the expansion and diversification of locations, but also the risk reduction related to the disruption of distribution chains are the main drivers of demand in Romania, but also in the Central and Eastern Europe. The high demand for such spaces is also proved by the fact that more than 50 percent of the projects under construction are already pre-leased,” said Andrei Brînzea, Partner Land & Industrial Agency Cushman & Wakefield Echinox.

Projects totaling more than 500,000 square meters are currently under construction in various cities across the country. Bucharest remains the preferred destination for developers, with 50 percent of the projects to be delivered being located around the capital city, while Timișoara, Brașov, Arad and Sibiu will also benefit from new spaces.