2021 is shaping up as a new record year for the industrial market, real estate consultant claims


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In the first quarter of this year, 264,000 sq m of industrial spaces were leased on the Romanian market, according to the report launched by CBRE real estate consultant. The leased volume increased by 43% compared with the same period last year, considering that 2020 was a record year for the industrial market.

“The industrial market has had a promising start this year. We notice a high activity both in terms of leased spaces, companies in the automotive and retail industries generating the highest demand, respectively over 50% of the leased volume, and in the segment of new projects development, especially in regional cities. Therefore, 2021 has all the prerequisites to become a new record year for the industrial market”, stated Răzvan Iorgu, Managing Director, CBRE Romania.

The largest deal concluded in the first three months belongs to the automative producer Dacia, which decided to renew its contract for the space of 68,000 sq m, owned by Globalworth investment fund in Argeș county.

More than half the volume of the industrial space leased was concluded in Bucharest, while the other regions of the country attracted the remaining 48% of the lease transactions. The south-eastern part of Romania was the most dynamic region outside the capital city, with 64% of the total transactions, according to CBRE Research data.

In the first quarter of the year, 61,000 sq m were added to the existing stock of 5.16 million sq m of industrial space, most of it being built in the western and north-western regions of the country. By the end of the year, another 600,000 sq m are expected to be delivered, according to CBRE data. Industrial rents remained stable, at EUR 3.90 sq m/month in the first quarter, similar to the value recorded at the end of last year.

Increasing appetite for retail parks

Romania modern retail stock is approaching the 4 mln sq m milestone, at the end of the first quarter of 2021 summing 3.91 mln sq m, with 17,000 sq m delivered.

“The retail market has diversified, and we notice an increasing interest in retail parks. Over 170,000 sq m are under construction right now and will be delivered by the end of the year, of which 90% are retail parks of different sizes, ranging from 3,000 to 20,000 sq m, given that most large cities benefit from the existence of shopping malls as commercial developments. Compared to other countries in the region, Romania has still a small stock of retail parks, of circa 400,000 sq m, while in Austria and the Czech Republic, such properties account for over 1 mln sq m.”, explained Carmen Ravon, Head of Advisory & Transaction, Retail, within CBRE Romania.

“We are also talking about evolution as far as retail sales are concerned: the mix between brick and mortar and e-commerce, supported by omnichannel services, is the retailers’ priority for 2021 and 2022, at least. In addition to the expansion in the online environment, FMCG and home & deco retailers generated an important demand in the industrial segment, of over 50,000 sq m in the first quarter”, added Carmen Ravon.

Prime retail rents remained constant in the first quarter, at 40 euro/sq m for high street spaces, respectively 70% for shopping centers, according to the CBRE Research report.

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