Bucharest, February 20th, 2012 – Total market activity mediated by real estate agents in 2011 reached more than 76,000 m2 in Bucharest, out of which a third represented renewals and renegotiations, according to a recent study of Colliers International.
With nearly 35,000 m2 of leases mediated throughout the past year, the Industrial Office Agency of Colliers International Romania reached a market share of more than 70% in Bucharest, consolidating its position as leader of the class A industrial market. In 2011, the industrial market was characterized by stability, with only 10,000 m2 delivered in Bucharest, within a built-to suit facility. Compared to the previous year, demand for industrial and logistic space decreased by 10%, a take-up level that is comparable with the one registered in 2004.
Bucharest remains the most important logistic hub in Romania, in terms of production and manufacturing. Although the pressure on rents continued to exist, most tenants concentrated their attention towards locations that offer both a qualitative space and a correct rent level.
“Similar to previous years, the majority of the tenants opted for locations in the Western outskirts of Bucharest. Out of the total demand, half was driven by logistic operators while another significant part came from existing tenants that either relocated or extended their space”, said Viorel Opaiţ, manager of the Industrial Agency of Colliers International Romania.
Colliers succeeded in mediating more than 44,000 m2 of class A leases in 2011. This volume includes the 10,000 m2 renewal agreement between IKEA and Bucharest West, which ranked as the biggest industrial transaction that took place in Bucharest during 2011. The major new leases that Colliers mediated in Bucharest involved Europolis Logistic Park, where eMag chose to lease a surface of almost 14,000 m2, while Gebrüder Weiss signed for more than 11,000 m2. Other deals were also signed for Mega Distribution Park, which companies such as Genesys, 3M and Extrans opted for. An important transaction was signed in the last quarter of 2011 as well, involving the 4,000 m2 leased by Havi Logistics in Chitila Logistics Park.
As insecurity still looms over the economic circumstances, evolution of the industrial market in 2012 will be similar to the previous year. As most important developers present on the market already have additional land capacity for further developments, transactions with land plots for industrial use will be scarce.
2011 was the first year when important companies relocated outside Romania and the spaces that were made available will soon be occupied.
In 2012, logistic operators will continue to be the most active players in terms of demand. Also, some of the outsourcing agreements will expire and thererefore, some companies might opt for changing their logistic operator. Moreover, as lease agreements will approach expiration date, landlords will be interested to maintain their current tenants.