Content provider for

The Star of the Show: Logistics & Industrial | Expert Opinion Article

08 July 2021

 

by Emilian Podaru, MRICS, Head of Industrial & Logistics, Crosspoint Real Estate

 

Several drivers are pushing the industrial and logistics market to develop at a very fast pace. E-commerce is the most visible one, as the segment saw a 30% increase in 2020. Likewise, the larger logistics segment (i.e. 3PL’s, retailers and distributors), is experiencing significant increase in volumes due to consumption growth. 

Most spaces are developed on demand, so the availability remains limited. Additionally, this sector is still in an early development stage especially if we look at similar markets, such as Poland or the Czech Republic. Apart from the already established logistics hubs (that will continue to grow), there are large areas across the country without significant modern parks. 

Most of the logistic stock in Romania was built in the last 5-7 years and includes modern concepts and amenities. This means that they will maintain their functionality and value for many years to come. An important point that deserves to be underlined is that most developers in this space are focusing on sustainable projects that benefit from green financing, and the segment leads the charts in terms of green certifications among all real estate market players.

 

 

Furthermore, large industrial players are changing their approach as far as supply is concerned, which is giving way to new opportunities. Up until 2020, just-in-time was the main approach of their supply chains, but over the course of the past twelve months, shortages and delays forced companies to consider nearshoring and just-in-case approaches. For Romania, this translates into a direct demand rise for industrial facilities in the near future. From an investment perspective the market is not very dynamic -  there are little to no modern properties on the market as most developers prefer to maintain their investments on the long term. Some opportunities might appear in the form of sale-leasebacks of production facilities but few properties will qualify for this type of investment. 



This article was originally published in Real Estate in Romania & Poland 2021 report, available in full here.

 

  • Share on: