Vacancy rate for logistics and industrial spaces in Bucharest is close to zero, with low deliveries of new projects and high demand in the first quarter. According to data from JLL Romania, only 27,000 sqm of industrial spaces were delivered, while net demand was nearly seven times higher, reaching 180,000 sqm.
Existing stock of industrial and logistic spaces in Romania reached 2.5 million sqm at the end of the last year, out of which 1.2 million sqm in Bucharest, resulting in a density of 128 m² per 1,000 inhabitants, lower than in the other countries in the CEE. Approximately 75% of the Bucharest stock is clustered along the A1 highway corridor in the west.
”The vacancy rate at the end of 2016 was estimated at less than five per cent in Bucharest and less than ten per cent in the rest of the country. At this moment, it is very difficult for existing projects to find room for new demand. That is why we see an increase in the amount of spaces delivered speculatively without a secure leasing contract. These spaces are contracted by tenants as soon they are placed on the market", said Costin Banica, head of industrial agency, JLL Romania.
From the demand point of view, JLL representatives see an advance of almost 40 per cent compared to the first quarter of last year, the entire surface being net demand, respectively new contracts and contracts built to suit.
Demand structure shows that 70,000 square meters, or 40 per cent of the total, are leased spaces by logistics companies, while retailers have signed deals for 53,000 square meters, or 30 per cent of the total. More than two-thirds of the first-quarter demand targeted Bucharest, over 97,000 sqm. Timisoara, Ploiesti, Cluj and Roman are other cities that have attracted companies for industrial and logistics.
Another record level of 400,000 sqm has been announced to be delivered until the end of 2017, as developers are encouraged by the low vacancy and record demand to further expand their existing parks or to start new projects.
Headline rents for prime distribution facilities, especially in Bucharest, are estimated at €3.5 to 4.1 m²/month. Rents for prime light industrial facilities are quoted between €3.3 and 4.25 m²/month.
Q1 top leasing agreements:
Proiect Chiriaș Oraș Suprafața (mp)
CTPark Bucharest West NOD Bucuresti 31.000
WDP Roman Profi Roman 27.000
P3 Altex Bucuresti 15.000
Wdp Carrefour Bucuresti 11.500
CTPark Bucharest West KLG Bucuresti 9.775
Ruuki Simplu Bucuresti 8.500
CTPark Bucharest West Tibbett Logistics Bucuresti 7.205
– end –
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. A Fortune 500 company, JLL helps real estate owners, occupiers and investors achieve their business ambitions. In 2016, JLL had revenue of $6.8 billion and fee revenue of $5.8 billion and, on behalf of clients, managed 4.4 billion square feet, or 409 million square meters, and completed sales acquisitions and finance transactions of approximately $136 billion. At year-end 2016, JLL had nearly 300 corporate offices, operations in over 80 countries and a global workforce of more than 77,000. As of December 31, 2016, LaSalle Investment Management has $60.1 billion of real estate under asset management. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit www.jll.com.
For further information, visit www.jll.com
Contact: Cristina Cuncea
Phone: +40 748 03 03 90