07. Mai 2012     Print Print 

Industrial market in Romania is still characterized by over-supply

Despite the increased year-on-year take-up volume registered at the end of 2011, the industrial market in Romania is still characterized by over-supply, with no significant change registered in terms of vacancy rate as at Q1 2012.

In 2011, approximately 70,000 sq m of industrial & logistics spaces were completed nationally, out of which only 30,000 sq m was developed speculatively – 10,000 sq m in Timisoara by VGP and 20,000 sq m in Ploiesti by Alinso Group. In Bucharest, no new developments or additional phases in the existing logistics parks have been delivered. Developers have been waiting to rent their current vacancy or seek prelease agreements for new buildings.

Consequently, at the end of 2011 the total stock of modern industrial spaces reached approximately 1.4 million sq m across Romania of which 882,500 sq m (accounting for 63% of the total national stock) were located around the capital city.

No completions were tracked in Q1 2012 and we do not expect any major projects to be started in 2012. Since 2009, the industrial market has been characterized by a more cautious developers’ strategy. Considering the weak macroeconomic situation, this prudent approach is still maintained and therefore the start of the construction for a new project is triggered by a build-to-suit contract or by securing a significant pre-lease.

With few projects planned to be delivered in 2012, the build-to-suit schemes will continue to be the main drivers of the construction activity.

In 2011, the take-up reached the highest level tracked since 2008, namely 200,000 sq m, out of which 110,000 sq m has been concluded in Bucharest. According to last year’s take-up, Timisoara, Ploiesti and Pitesti were among the most active industrial hubs in terms of demand.

Take-up per annum around Bucharest has gradually evolved from 70,000 sq m in 2009 to 110,000 sq m transacted in 2011. In the other active industrial poles of Romania such as Ploiesti, Timisoara, Pitesti and Brasov the total absorption has increased from 30,000 sq m in 2009 to over 80,000 sq m transacted in 2011.