The main locations where developers will expand their presence in the next 15 months are Bucharest (154,000 sqm), Brașov (108,000 sqm), Bacău (50,000 sqm), Slatina (50,000 sqm) and Timișoara (34,000 sqm).

“In a context where the economic uncertainty continues to impact the tenants’ expansion plans, developers may adopt more cautious approaches when it comes to commencing new investments in industrial & logistics facilities, in the short term at least. This caution can also be noticed in other markets in the region, a region where the new supply has seen an y-o-y decrease by 16% in the first 9 months of 2023. However, we estimate that the developers’ appetite for new investments will bounce back on the medium term, given that we are already witnessing a downward inflationary trend and a stabilisation of the financing costs, elements which could stimulate the tenants’ needs for new industrial premises,” said Andrei Brînzea, Partner Industrial Agency at Cushman & Wakefield Echinox.

In terms of demand, a gross take-up totaling 716,000 sqm was recorded in the first 9 months of the year, reflecting a 22% y-o-y drop. The new demand continues to be the main driver of the leasing market, with a share of over 70% out of the gross take-up registered in Q3 2023 and also during the first 9 months of 2023.

At the same time, the prime monthly headline rents in Bucharest and in the main industrial & logistics destinations in Romania slightly increased, ranging between €4.25 - €4.65 per sqm in Q3 2023, an upward trend which is expected to continue going forward albeit at a slower pace, given the limited pipeline of speculative projects.

The rental costs in Romania are the lowest in the region, even though rents have generally gone upwards since 2020.