Industrial spaces demand up by 50 per cent in H1 2017, says JLL

The total demand for industrial and logistics space continued to grow in the second quarter, so that by mid-year the leased area exceeded 350,000 square meters, 54 per cent more than the similar period of the last year.

2017-07-24 11:07:57

According to data centralized by JLL Romania, in the second quarter the total demand for industrial spaces reached 180,000 sqm, a level comparable to that recorded in the first three months of this year.

"Demand in the industrial and logistics market has exceeded our estimates, leasing volumes in the first half of the year being above our projected level for the whole of 2017," said Costin Banica, Associate Director, Head of Industrial Agency JLL Romania. "So, if we keep up the growth rate, we might be witnessing a new record of the demand, given that last year the companies leased about 460,000 square meters, representing a historic maximum."

The new demand for industrial spaces has exceeded more than three times the new offer on the market, so that the vacancy rate remains extremely low, as everything that is delivered new is already occupied by the tenants. The modern stock of industrial and logistics space is 2.7 million sqm.

Nearly 70 per cent of the area of logistics and industrial spaces leased in the first six months is in projects in Bucharest, and ten per cent in West and Northwest (Cluj, Oradea, Timisoara). Contracts have also been signed for projects in Pitesti, Ploiesti, Ramnicu Valcea and Roman.