Romania strengthens its position as a regional logistics hub, driven by major investments and rapidly developing infrastructure

Romania’s industrial and logistics real estate market continued to grow in 2024, with deliveries totaling approximately 400,000 square meters, bringing the total stock to 7.4 million square meters, according to the annual report published by Colliers. Interest from both international and local investors has increased, and major transactions, such as the expansion of retailers LPP and Deichmann, confirm Romania’s position as a strategic distribution hub for Southeastern Europe. In the long term, the market remains attractive due to a competitive labor force and ongoing infrastructure modernization. However, in the short term, economic and political uncertainties could slow the pace of expansion.

The year 2024 ended with lease agreements covering approximately 620,000 square meters, a decrease of around 20% compared to the near-record level reached in 2023, according to preliminary estimates. However, this result does not fully reflect the dynamics of the local market, Colliers consultants emphasize, as it includes only publicly reported transactions- either disclosed by local research offices or announced publicly by companies or in investor reports of listed firms. In reality, a significant portion of leasing activity, particularly contract renewals and other unreported direct transactions, could account for at least 20-30% of the total volume.

“If before the pandemic the annual leasing volume was below 500,000 square meters, the 2024 result confirms a growing market. Although CTP and WDP remain the leaders, controlling two-thirds of the total stock, we are seeing increased activity from other developers as well. The entry of renowned German developers such as Garbe (Germany) and Hillwood (US) into the market, along with increasing investments from local players, indicates a positive dynamic and solid growth prospect. Additionally, for the second consecutive year, a third of the leased spaces were allocated to production, compared to just 10-15% in previous years, reflecting major investments in the industrial sector. However, many manufacturing companies prefer to own the spaces in which they operate, a trend that is shaping the long-term structure of the market”, explains  Victor Coșconel, Partner | Head of Leasing | Office & Industrial Agencies at Colliers.

More than half of the industrial and logistics space leases were completed in Bucharest and its surrounding areas, but this percentage is significantly lower than the decade-long average, highlighting the rapid development of regional centers that are becoming increasingly attractive for industrial and logistics operations. Although Bucharest remains the primary destination for this sector, Colliers consultants estimate that, in the long term, its share will decline as other cities in the country attract more investors and logistics operators.

The vacancy rate remains low, at around 5% nationally, limiting tenants’ negotiating power, especially given the limited number of speculative developments. Rents have stabilized, and a built-to-suit (BTS) warehouse in a prime location is leased for 4.5–5 euros per square meter in Bucharest and major cities. By comparison, before 2021, rents were below 4 euros per square meter, reflecting a significant market correction.

The largest transaction of the year was the expansion of fashion retailer LPP, which leased 42,000 square meters of warehouse space in northern Bucharest, increasing its total footprint to over 130,000 square meters, making it one of the largest tenants in Romania. Additionally, footwear retailer Deichmann pre-leased a 20,000-square-meter warehouse in Bucharest, which will be transformed into a regional distribution center. At the same time, auto parts manufacturer Federal Mogul signed a sale & leaseback agreement with WDP for its 19,000-square-meter factory in Ploiești. Meanwhile, an important FMCG distribution network in the Romanian market has inaugurated its first temporary warehouse, covering c. 10,000 square meters in MLP Bucharest West. Furthermore, GXO completed the first phase of its project at the end of the year for retailer Trendyol, aiming at 50,000 square meters. Both transactions were facilitated by the Colliers team.

“These transactions highlight the dynamics of the local market and current trends, reinforcing Romania’s role as a regional distribution hub for Southeastern Europe and, in some cases, for the entire Central and Eastern European region. With the rapid improvement of infrastructure and full accession to the Schengen Area in 2025, Romania is becoming increasingly attractive for logistics investments. One of its key advantages is the low labor cost relative to productivity, the best in the European Union in sectors such as transport and warehousing. Even after the wage increases of the last decade, Romania remains competitive at both the European and global levels, attracting more and more companies looking to expand their presence in the region”, states Victor Coșconel.

The modernization of infrastructure is another key advantage in driving economic growth and the development of the industrial and logistics sector. After a record year in 2024, with 1,200 kilometers of express roads delivered, Romania could reach 2,000 kilometers by the end of the decade. Currently, over 600 kilometers of highways and express roads are under construction, with another 700 kilometers in the planning phase. The completion of essential segments, such as Sibiu-Pitești and Iași-Târgu Mureș, will enhance connectivity and attract new investments.

“Romania has significant long-term potential due to its competitive workforce, strategic location, and infrastructure investments. However, the current stock of industrial and logistics spaces, estimated to reach 8 million square meters by the end of 2025, remains modest compared to countries like Poland, which has a volume four times larger. Expanding to 11-12 million square meters by the end of the decade is a realistic goal. In the short term, however, economic and political uncertainties may impact the pace of expansion, but large-scale transactions could bring positive surprises and support market activity”, concludes Victor Coșconel, Partner | Head of Leasing | Office & Industrial Agencies at Colliers.