Over 60% of the volume was brokered by JLL Romania, which also made the largest transactions this year, respectively those through which Profi rented two warehouses in Craiova and Timisoara, of 57,000 sqm and 58,500 sqm.
In fact, the largest volume of demand came from FMCG companies, which rented half of the total volume recorded in the first half of the year (126,000 sqm), production (24% and 60,000 sqm, respectively) and with activities in the field distribution and logistics (18%, 45,200 sqm)
Bucharest attracted most of the demand for industrial and logistics spaces in the country, respectively 32% (approximately 81,000 square meters), followed by Timisoara (68,400 square meters), Craiova (57,500 square meters) and Arad, with almost 20,000 traded square meters.
Given the developments in the first half of the year, JLL's expectations for demand in 2019 are optimistic, so we expect a volume of transactions comparable to that recorded in the last 3 years, around 450,000-500,000 square meters / year.
"The industrial market managed to maintain its momentum this year as well, even if, as expected, the companies' plans were overturned by the COVID-19 crisis. We are optimistic about the evolution of demand considering the fact that retail sales increased in May by 18.5% compared to April, after the sharp decline in April. At the same time, it is gratifying to approach the developers who continued the investments even in the difficult conditions that manifested themselves at the level of the national economy and not only ", said Viorel Opaiț, Business Development Director of JLL Romania, the one who made the biggest market transactions this year.
JLL data, based on information provided by developers, shows that this year will be completed projects totaling about 600,000 square meters, which will increase the stock to over 5 million square meters.
As we saw in the first half, although Bucharest is a leader in terms of demand and new supply on the market (half of the modern stock of industrial spaces are built near Bucharest), we see an increase in interest in both demand and and developers, for the diversification of target areas.
"In our opinion, based on the demands we have on the table, the market will balance in the conditions in which companies, especially retail, FMCG, distribution and logistics, which wanted to rent spaces especially near Bucharest, which accumulates over 30% of consumption nationwide, now it is looking to other areas of the country to streamline its distribution chain ", said Viorel Opaiț, Business Developer Director of JLL Romania.
Although the volumes of leased space in the first half of 2020 have remained high, in line with previous years, we will note that most production space projects have been postponed until a time when there will be clearer prospects on the impact that the current situation has on the world economy and on consumer habits.
Rents have remained stable for the time being, but we are closely following the impact that a potential decrease in the volumes of traded space will have in the context of maintaining the accelerated pace of development by large investors in modern industrial spaces. (source: JLL)
