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C&W Echinox: Stock of industrial and logistic areas grew ten times in Bucharest in last 13 years
The stock of modern industrial and logistic areas in Bucharest have grown ten times over 204-2017, to a level of 1,2 million square metres, being backed by the positive evolution of consumption and purchase power, according to an analysis made by the real estate consulting company C&W Echinox. The analysis shows that 2017 will exceed 2016, estimating the delivery of new areas with areas of over 250,000 sq.m.
According to it, in 2004 the second commercial centre Plaza Romania opened in Drumul Taberei. Retailers like Carrefour and Billa operated only a few stores each, testing the Romanians’ appetite for modern trade.
C&W Echinox consultants say that in that period the net average salary in Bucharest did not exceed 200 euros/month, compared to 700 euros at present, and Cefin Romania gathered the first lands at the entrance on Bucharest-Pitesti highway, km 13, to develop the first logistic park, the present P3 Bucharest, which became the largest logistic development in Romania, with an area of over 300,000 sq.m.
“In 2005, there were just a few storehouses in Bucharest and in the Western area only 50,000 sq.m had developed. We are talking about the 20,000 sq.m storage of Phoenix Real Estate in the Belt area Carrefour- Militari and the first Cefin storehouse of 15,000sq.m, now occupied by Altex,” said Rodica Tarcavu, senior consultant in the logistic department of C&W Echinox.
She added that the stock grew gradually until 2009, when it reached 900,000 sq.m, “in the last three years, starting with 2014, the development rate reached a construction volume of 200,000 sq.m. 2017 will exceed the 2016 level, estimating the commissioning of new areas with an area of 250,000 sq.m, maybe the largest volume developed until now. Thus the stock will get close to 1.5 million square meters,” Tarcavu said.
According to C&W Echinox consultants, the entrance to Bucharest-Pitesti highway remained the favourite destination of logistic area developers, so that over 70% of the present stock is concentrated at km 13 and 23, two landmarks in the local logistic market.
80% of the stock to be commissioned this year is concentrated in the area of Bucharest-Pitesti highway, despite the fact that certain retailers are looking for storage solutions in the northern area of the city, especially in the area of A3 Bucharest-Ploiesti highway. The stock of industrial logistic areas in Bucharest represent about half of the market at national level; the growth potential reported to the other capitals in the area remains significant.
At the end of the Q1, 2017, Warsaw had a logistic area stock of 3.1 million sq.m, Prague 2.5 million sq.m, while Budapest had close to 2 million sq.m, real estate data show.
The industrial department of Cushman& Wakefield Echinox rented in 2016 industrial and logistic areas of 50,000 sq.m in Bucharest and Cluj Napoca.
According to JLL Romania real estate consulting company, at the end of 2016, developers announced a record level of 400,000 sq.m for new projects, as the low occupation degree and record demand encouraged them to expand existing parks or begin building new ones. If all announced projects are completed, the new offer will exceed this year that of 2016, when 330,000 sq.m were delivered.