JLL Romania analysis: Rental areas taken under lease by companies advance 54pct in H1 2017

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The rental area taken under lease by companies in Romania exceeded 350,000 square meters in the first half of 2017, up 54 percent from the same period of 2016, according to a JLL Romania analysis released on Monday.

According to the analysis, total demand for industrial space in the second quarter of 2017 (April – June) reached 180,000 square metres compared with the first three months of this year.

“Demand on the industrial and logistics market exceeded our estimates, as rentals in the first half of the year went above our projected level for the entire 2017. So, if the growth rate so far is maintained, we may be witnessing a new demand record, given that last year the companies took under lease about 460,000 square metres, representing a historic high,” says Costin Banica, Associate Director, Head of Industrial Agency JLL Romania.

Total demand for industrial and logistics space continued to advance in the second quarter, so that by mid-year the rented area of the companies exceeded 350,000 square metres, up 54 percent from the same period last year.

New demand increased in the first six months by 51 percent, to 229,800 square metres, accounting for almost 65 percent of the total area traded during this period.

As far as new offerings go, three projects have been delivered in Romania since the beginning of the year totalling 72,000 square metres, and another 312,000 square metres are to be completed by the end of the year.

Retail trade and logistics remain the engines of the market (65 percent of the leased area), while production is gaining ground, at an increase rate of 22 percent.

In addition, about 70 percent of the rented logistics space in the first half of 2017 is embedded in projects conducted in Bucharest City, and 10 percent in West and Northwest (Cluj, Oradea, Timisoara). Contracts have also been signed for projects in Pitesti, Ploiesti, Ramnicu Valcea and Roman, according to the JLL Romania analysis.