Industrial sector to exceed four million sqm of A-class warehousing space, new developments to rise in Craiova, Constanta, Iasi

The Industrial sector could reach out up to 750,000 sqm of logistic projects by the end of this year, leading Romania to the surpass of its four million sqm milestone, according to the latest forecast by Dunwell, the real estate agency specialized in Industrial brokerage. Dunwell also states that about 300,000 sqm of industrial projects are under construction now, one-third of the built area being set in the Capital Bucharest or nearby, a press release shows.

“Many important projects, started in 2018, will get finalized this year and the developers have started to look up for new future land developments in the regional cities like Craiova, Constanta or Iasi in order to extend their presence across the country. An increase in the demand for smaller size industrial space is being recorded and we expect  the Eastern side of the Capital Bucharest to become a new hot spot for this type of projects, based on a few key factors such as: the lack of developer and logistics competition in the area, great public transport connection with the city and A2 highway and the workforce availability nearby. Therewith, the North-Eastern side of Bucharest, that connects the city with A3 Bucharest – Ploiesti highway, is also targeted by investors for future industrial projects”, said Daniel Cautiș, managing partner Dunwell.

By the end of 2018, the A class warehousing stock was about 3.5 mln. sqm. Therefore, based on the forecast of projects to be completed by developers this year, Romania could surpass the 4 mln. sqm stock, a performance which reflects the increasing interest of investors in our country.

Demand for industrial spaces is high, retail and FMCG companies leading in volumes and take-up.

From a total high of 700,000 sqm of warehousing space contracted in 2018, Retail was  the star of the industry, with 42 percent of the total market. Companies like Metro Cash & Carry, Auchan or Carrefour were involved in the biggest transactions, accounting for approximately 40 percent of the total take-up. The FMCG sector also accounted for about 20 percent of total transactions since last year, both Retail and FMCG surpassing the 60 percent of the market.

As expected, about 60 percent of the total transactions in Romania were industrial spaces developed in Bucharest or nearby.

“The high demand coming from Retail and FMCG clients will continue this year, as well, both being related to the consumption rate level in Romania, which plays a key role and a positive influence on the development of new industrial space”, Daniel Cautiș, managing partner at Dunwell concluded.

The demand volume from logistics companies, even after losing the lead position in 2018, it remained quite significant, determining  25 percent of the total number of transactions concluded last year.