Increased supply of industrial & logistics spaces in 2024, as the stock reached almost 7.6 million sq. m

Bucharest had the highest share of the newly completed projects in 2024 – 152,500 sq. m (27% of the national new supply), followed by Ploiesti with 127,200 sq. m (22%) and Brasov with 76,600 sq. m (13%).

The current under construction pipeline is of around 228,000 sq. m, but we estimate that the 2025 completions will exceed this level, given that developers have significantly reduced the number of speculative projects, while generally starting construction after having secured a series pre-lease agreements.

The Bucharest – Ilfov region has the largest share of spaces under construction (98,000 sq. m), with pipelines of 22,000 and 20,000 sq. m being recorded in Arad and Baia Mare respectively.

In terms of demand, the Q4 leasing volume was of 268,300 sq. m, 64% higher than in Q3, when only 164,000 sq. m were transacted. Overall, the 2024 activity reached 842,800 sq. m, corresponding to a 16.8% drop vs. 2023, while the net take-up had a share of 62% in the overall leasing volume throughout the year.

Retail and FMCG companies were the most active players on the market, followed by production, automotive and logistics & distribution operators.

The overall vacancy rate slightly increased to a level of 4.9%, but a downward movement is expected in 2025 due to the limited number of speculative projects under construction.

Ștefan Surcel, Head of Industrial Agency Cushman & Wakefield Echinox: “The Romanian industrial & logistics market is going through a period of stabilization, with an increasing number of deliveries and with solid demand from retail, FMCG and manufacturing companies. Despite a slight rise in vacancy, the outlook for 2025 remains optimistic, as the positive economic evolution, with GDP growth and declining inflation, creates a favorable environment for continued development in this sector.”

The prime headline rents in Bucharest and in the main industrial & logistics destinations in Romania have generally remained flat, ranging between €4.20 – 4.70/ sq. m/ month in Q4 2024, with lower asking rents in locations with higher vacancy rates. Rents are expected to remain relatively unchanged going forward, with increases only being predicted for new developments, mainly as a result of the rising construction costs and land acquisition prices.