Cushman & Wakefield Echinox: Modern stock of industrial and logistics spaces estimated at 7.6 million sqm., 27 percent more over 2024

Bucharest recorded the largest share of the built area in 2024 – 152,500 square meters (27% of the total), followed by Ploiești with 127,200 square meters (22% of the total) and Brașov with 76,600 square meters (13% of the total deliveries in 2024).

Currently, at a national level, about 230,000 square meters are under construction, but we estimate that this year’s deliveries will exceed this level, given that developers have significantly reduced their speculative projects, and are only starting construction after securing pre-lease contracts.

Bucharest – Ilfov has the largest area of ​​space under construction (98,000 square meters), while Arad has 22,000 square meters under construction, and Baia Mare will have about 20,000 square meters of new space completed during the year. In terms of demand, the last quarter of last year saw a significant increase in trading activity – 64% above the level of the third quarter. However, for the whole of 2024, companies leased 842,800 square meters of industrial and logistics space, representing a decrease of 16.8% compared to 2023. New demand accounted for 62% of the volume traded in 2024, the rest being renegotiations of existing contracts. FMCG and retail companies were the most active tenants on the rental market, followed by manufacturing and automotive companies, and logistics and distribution operators. Given the evolution of demand and trading activity, the vacancy rate registered a slight increase to 4.9%, nationally, with a reduction expected in 2025 due to the limited number of speculatively developed projects.

“The logistics and industrial space market in Romania is going through a period of stabilization, with increasing deliveries and solid demand from retail, FMCG and manufacturing companies. Despite a slight increase in the vacancy rate, the outlook for 2025 remains optimistic, as the positive economic evolution, with a growing GDP and decreasing inflation, creates a favorable context for continued developments in this sector,” said Ștefan Surcel, Head of Industrial Agency Cushman & Wakefield Echinox.

Benchmark rents in Bucharest and the country’s main industrial and logistics destinations remained broadly constant, between €4.20 – €4.70 /sq m/month in Q4 2024, with projects with higher vacancy rates being marketed at lower levels. No significant rent fluctuations are expected for the period ahead, but new projects could be available at higher rents, mainly due to rising construction costs and land acquisition prices.

The current under construction pipeline is of around 228,000 sqm, but the agency estimates that the 2025 completions might exceed this level.

Leasing activity also remained strong in 2024, reaching 842,800 sqm. Retail, FMCG, and manufacturing companies were among the most active players in the market.

The prime headline monthly rents in Bucharest and in regional cities have generally remained flat, ranging between €4.20 – 4.70 per sqm in Q4 2024. Moreover, rents are expected to remain relatively unchanged going forward.

Ștefan Surcel, Head of Industrial Agency at Cushman & Wakefield Echinox, said: “Despite a slight rise in vacancy, the outlook for 2025 remains optimistic, as the positive economic evolution, with GDP growth and declining inflation, creates a favorable environment for continued development in this sector.”

Looking ahead, VGP, MLP and ELI Parks are some of developers that are working on new warehouses with a combined leasable area close to 90,000 sqm in Bucharest and Arad.