Diversified Offer To Lower Prices For Logistics Spaces

According to DTZ Echinox specialists, the year 2007 will bring new projects to the logistics market in Bucharest and throughout the country. They estimate that over 150.000 square meters of class A storage spaces will be delivered this year, the vacancy rate remaining under 5%.

The diversified offer, in compliance with European standards, will cause a slight decrease in rent prices for storage spaces. According to a DTZ report, logistics parks will be developed in major cities of the country.

As a consequence of Romania"s accession to the EU, some well-known international companies will be present on the Romanian market. Also, the increase in EU imports and in exports to member states will accelerate the industrial development of the country. The offer of storage spaces will increase in cities like Bucharest, Brasov, Cluj Napoca, Sibiu, Oradea and Constanta. The new stock of modern spaces will be influenced by the completion dates for the new logistics parks.

The year 2007 will mark a transition from class B to class A spaces. In the past two years, there has been an increase tendency in the number of such logistics projects in Bucharest. Rent prices are stronly influenced by two opposed factors: the tennants" plead for lower rents and the ascending trend of land acquisition and construction costs. This year, there will be a slight decrease in rent prices compared to 2006, according to DTZ specialists, who estimate an average of 4 EUR/sqm/mth.

Rentals will account for approximately 70-80% of transactions, the yield for industrial spaces being estimated at 7-8% for 2007. The main clients of the industrial market are logistics companies, distribution companies and retailers. According to DTZ specialists, the industrial market will develop faster than other segments, as such investors have significant experience on the Central and Eastern Europe markets.