22.3 C
Bucharest
May 22, 2022
EDITORIAL OP-ED OPINION POINTS OF VIEW Real Estate

Vacancy dropped at 4.0% in Industrial & Logistics market, 2022 to be a year of harsh competition

CBRE mandates Victor Răchită to lead and position the I&L department as market first choice

CBRE, the global leader of real estate consultancy market, makes a strategic move by appointing Victor Rachita to lead the Industrial & Logistics department in Romania, pursuing its consistent efforts to strengthen the industrial & logistics team and extend the local market share.

Victor is one of the top seniors of the Romania real estate market with more than 20 years of experience, half of which within CBRE, in positions of head of office 2012-2015 and business development until 2018. He re-joined CBRE, aiming to strengthen business development efforts. Starting with December 2021, he assumed the position of Head of Industrial & Logistics for CBRE Romania, a role that makes him responsible for coordinating activities and initiatives in the industrial & logistics sector on the Romanian market, with a clear focus on positioning CBRE Romania as a leader also of this market.

We challenged Victor’s competitiveness in a moment when the industrial and logistics market is the hottest real estate sector, having confidence in his capabilities to design and implement a development strategy of the Industrial & Logistics department, with focus on team and turnover growth, that will make CBRE Client’s first choice in their decision to work with market expertssays Razvan Iorgu, Managing Director of CBRE Romania

The competitive spirit is a recognized trademark of Victor, earned during his student years as a professional volleyball player with contracts in Romania, Italy, and Israel, and he continued exercising the competitive spirit into business becoming the consultant who sealed in 2016 the largest office transaction in the entire CEE region: 47,500 sqm for Renault – a record that has not yet been dethroned in Romania. His personal portfolio covers more than 150,000 sqm transacted, and a suite of top clients among which we mention: Renault, Rompetrol, Servier, Novartis, Sanofi, Carrefour, Orange, TetraPak, Medlife, Medicover.

I have this excitement of meeting a great challenge, and I’m using every moment I have to prepare for it. The Industrial & Logistics department of CBRE have already doubled starting with January, and together with my team we’ve created the strategy and premises for a very active 2022. The market overpassed the 5.5 MLN sqm of modern I&L spaces at the end of 2021, we see a generous pipeline of another 500.000 sqm for 2022 and a pool of Clients craving for high quality market knowledge but also trustworthy and bold advisors. Game on, I saystated Victor Rachita, the new Head of Industrial & Logistics, CBRE Romania.

Before plonging in the real estate industry, Victor graduated the National College Sf. Sava and the Academy of Economic Sciences in Bucharest, specializing in Business Administration. He is fluent in Romanian, Italian and English, and during his free time he continues to train his competition spirit in sports.

 

Securing, relocating, expanding – 3 keywords of 2021 that defined this year perspective

 

Industrial leasing activity in 2021 totaled 856,000 sq m with below 10% less compared with the amount transacted in 2020, a record year in terms of transactions and new supply. Nonetheless, if we look further back, the year’s leasing activity is with circa 40% higher compared with the figures recorded for 2017 and with 70% and 80% when compared with the values from 2018 and 2019.

Take – up (total transactions excluding renewal/renegotiation) claimed a share of 72% from the total leased surface, indicating tenants’ eagerness to either secure a new location, to relocate in another one or expanding the occupied surface in the same project. Representing 15% from take-up, pre-lease deals had an average deal size of 6,000 sq m.

 

Heading towards the 6 MLN SQM Milestone of 2022

 

Already under construction at the end of 2021, circa 500,000 sq m are expected to be added to Romania’s industrial stock by the end of 2022, pushing the modern stock over a new threshold, the 6.0 mln. sq m. One third of the future new supply is developed in Bucharest, and another one third will be added to West/North-West region modern stock.

Vacancy rate at the end of the year for the country’s modern industrial stock lowered at 4.0%, the impressive leasing activity started last year reflecting as well on the occupied stock.

 

 

Related posts

How much longer do women have to save to buy a home?  Romania has the smallest saving disparity between men and women

NINE O'CLOCK

PwC Report: Romanian entertainment and media industry expected to increase by 8% in 2021 and exceed the 2019 level

NINE O'CLOCK

Alesonor partners with Holcim Romania Group for Amber Forest’s sustainable construction materials

NINE O'CLOCK