Most of the demand came from logistics, transportation and distribution companies, which leased a total of 290,000 square meters, or over 55% of the total. The retailers were also among the most active companies last year, the surface contracted by them cumulating over 110,000 square meters. Approximately 100,000 square meters have been leased for production activities, but it is worth mentioning that these companies prefer to own the production facilities. For this reason, the share of renting such spaces does not reflect the dynamics of this sector.
Another positive element of the market is the fact that almost 430,000 square meters, or more than 80% of the total leased area in 2017, represent new demand - new lease agreements, extensions and pre-leases, the rest being contract renewals and relocations.
"Although politically turbulent, 2017 appeared very well at the level of macroeconomic indicators: foreign direct investment has risen to a record high, GDP has had an unexpected, consumer driven upward trend (2017 was the second consecutive year with an increase of over 10% in consumption). This picture has encouraged market development even more than we anticipated earlier this year, "said Costin Bănică, Associate Director, Head of Industrial Agency JLL Romania.
The regional structure of demand puts Bucharest at the top of its preferences with 280,000 square meters (53% of the total). On the second position is Timişoara - 76,200 square meters, followed by Piteşti - 50,000 square meters. In Roman the traded area has accumulated 32,000 square meters, in Cluj 25,250 square meters, and in Ploiesti 24,700 square meters.
"The market is still captive in several areas of the country - Bucharest, West and Center. With a few exceptions, the demand and the new offer have also focused this year on the established locations that have already become development poles. From this point of view, there is an imbalance in the market, which will be maintained as long as the problems related to the availability of labor and infrastructure are not solved, "Costin Banica said.
New offer was lower than demand in 2017, developers completed projects totaling nearly 360,000 square meters, out of which 242,000 square meters (67% of the total) were built in Bucharest and Ilfov. About 40,000 square meters were delivered to Cluj, and 34,000 square meters in Timisoara. Roman recorded its first development of modern space by completing the Profi warehouse by WdP, covering an area of 33,500 square meters.
"The Romanian market will remain this year in the attention of the tenants. Investors' sentiment remains positive, which makes us believe that in 2018, the industrial and logistics market will have a remarkable performance, "said Costin Banica, Associate Director, Head of Industrial Agency. (source: adevarul.ro)
