Although less impacted by the effects of the Covid-19 epidemics than other real estate sectors, the industrial and logistics market is also adjusting to the new business context. Companies are restructuring projects and processes (46%) or are putting some projects on hold (33%) and are searching for alternative suppliers (19%) to minimize impact of the epidemiological crisis on their business, according to a study conducted by Colliers International among 76 industrial & logistics companies in the Romanian market. 59% expect rents to decrease in the next 12 months and industrial & logistics companies in the retail segment count on online sales and on diversification of sales channels to recover.
85% of industrial & logistics companies see their business impacted in the actual context, but 54% consider the effects are minor compared to other market. 29% say the business is affected by the employees’ absence, 28% by restrictions in delivery, 16% by supply bottlenecks and 13% by a halted production, according to Colliers International’s study conducted among companies operating in logistics/transport, developers, companies in retail and eCommerce, production and manufacturing and investors in the industrial and logistics market. The study is part of a broader analysis of the overall real estate market outlook, based on relevant insights from all market segments, aimed to bring some clarity about the industry.
The relationship with China, affected
43% of the respondents see a change in thinking in the industrial sector about relations with China regarding imports and warehousing in the EU. 45% think there will be only a short term change and 13% see no change. It is still too early to judge the impact of the post-pandemic impact on trade relations, but the specialists underscore that a large part of market participants would expect a re-balancing of sorts with regards to China.
For Romania, this could mean the re-shoring of new production facilities for European markets. Similar surveys undertaken by Colliers in neighboring countries yielded similar results, with the majority of Polish I&L players expecting either short-term or long-term opportunities at the expense of China.