*The highest rate of deliveries in the post-crisis period
The logistics and industrial spaces stock will increase by approximately 500,000 square meters this year, continuing the upward trend in 2016. About 80% of the new deliveries are expected in the Bucharest area, but the interest is also growing for the secondary cities in the country, according to Colliers International .
The increased demand from the FMCG companies (fast moving consumer goods) and of the online commerce sector will continue throughout 2017, the international players being attracted by Romania’s potential in terms of the industrial sector.
“Considering the high volume of applications in the past three years, we estimate that the current stock of 3 million sqm of logistics space will increase by 500,000 sqm in 2017 (about 17%), marking the highest rate of post-crisis deliveries. About 40% of the new deliveries will come from the FMCG companies, 20% from the online commerce sector and 10% from the IT and electronic storage spaces. The market will also continue its growth with numerous speculative deliveries, which will be absorbed quickly due to the increased consumer spending”, says Laurentiu Duica (photo), Associate Director – Industrial Division within Colliers International.
If in 2016, the processing factories were analyzing the Balkan area for a possible market entry, the structural changes in the Romanian economy could make these efforts possible later this year. Targeted is not only the Capital, but also the secondary and tertiary cities in which there have been developed numerous commercial projects and which benefit from the improved infrastructure.
“In 2017, the deliveries in the Bucharest area could rise by up to 80% compared to 60% in 2016. However, due to the Transilvania highway project that would establish a rapid transit route, we expect the major cities in the region to draw the attention of the important processing factories who want to alleviate some shortcomings of labor force “, Laurentiu Duica added.
The online trade, the main source of demand for industrial spaces in the next 5 years
“We will continue to see entries of new players from the online trade segment, especially that the given existing storage facilities do not meet the current demand. We expect that in the next five years the online shopping to be the main source of demand in the industrial sector which will result in doubling the stock of the logistics spaces”, Laurentiu Duica maintains.
2016 has represented a point of growing for the industrial sector, the rate of occupancy in Bucharest falling from 5% in 2015 to 2% in late 2016 and remaining at 5% in the rest of the country, while the total delivered spaces reached 350,000 sqm.
As for the rents, according to Colliers International, they have not fluctuated in 2016, remaining between 3.8 and 4.25 euros / sqm, but it is more likely to record growth in 2017, because of the construction market that will try to adapt to the deliveries planned this year.