CBRE: 2021 is shaping up as a new record year for the industrial market

In the first quarter of this year, 264,000 sqm of industrial spaces were leased on the Romanian market, according to the report launched by CBRE. The leased volume increased by 43 percent compared with the same period last year.

"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 sqm, owned by Globalworth investment fund in Argeș county.

In the first quarter of the year, 61,000 sqm were added to the existing stock of 5.16 million sqm 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 sqm are expected to be delivered, according to CBRE data. Industrial rents remained stable, at EUR 3.90 sqm/month in the first quarter, similar to the value recorded at the end of last year.

Romania modern retail stock is approaching the 4 mln sqm milestone, at the end of the first quarter of 2021 summing 3.91 mln sqm, with 17,000 sqm delivered, according to CBRE Research data.

"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 sqm in the first quarter,” - added Carmen Ravon.

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