Friday, 16 October 2026
Romania’s industrial and logistics property market is experiencing a reduction in leasing activity following an exceptionally strong 2025, although demand remains considerably higher than before the pandemic. New research from Colliers shows that approximately 450,000 sqm of industrial and warehouse accommodation was leased during the first nine months of 2026, around 30% less than in the corresponding period last year. The figures suggest that businesses are becoming more selective about expansion commitments, while improvements to transport infrastructure are creating opportunities in locations beyond the country’s established logistics centres.
The slowdown has been particularly noticeable around Bucharest. The capital and surrounding Ilfov County generated approximately 265,000 sqm of transactions between January and September, compared with 448,000 sqm a year earlier. This represents a reduction of approximately 41%. Elsewhere in Romania, leasing volumes declined by less than 10%, reaching approximately 186,000 sqm. Although Bucharest continues to dominate national activity, the smaller contraction in regional markets indicates that demand is becoming less concentrated in the capital.
The development of new motorway connections is contributing to this geographical change. Industrial locations south and east of Bucharest are attracting greater interest as improvements to the A0 ring road provide more convenient access to major transport routes. Among the largest transactions recorded this year were agreements at VGP Park Bucharest A2 and CTPark Bucharest South. These areas are increasingly competing with the western and northern parts of the capital, where much of the previous decade’s logistics development was concentrated.
Infrastructure investment could also improve the prospects of industrial markets further from Bucharest. Moldova, in northeastern Romania, is identified by Colliers as an area that could benefit from major road construction programmes. Better connections to manufacturing centres, labour markets and national distribution networks may encourage developers and occupiers to consider locations that previously faced disadvantages because of longer transport times and limited motorway access.
Meanwhile, Romania’s supply of modern industrial and logistics accommodation continues to expand. More than 300,000 sqm of new space was completed during the first nine months of 2026, including approximately 80,000 sqm in the third quarter. The country’s total modern stock has consequently exceeded 8.3 million sqm. Recent developments include a 56,000 sqm facility built for retailer LPP in western Bucharest and a warehouse project of approximately 46,000 sqm north of the capital. Additional large facilities are expected to enter the market before the middle of 2027.
Despite weaker leasing volumes, headline rental levels have remained relatively stable. Modern logistics buildings in established locations generally achieve monthly rents of approximately €4.50–€5.00 per sqm, although transactions are increasingly being negotiated towards the lower end of that range. Competition between property owners has intensified as some occupiers seek to sublease warehouse space they no longer require. This additional accommodation is providing tenants with more options, particularly where businesses can accept existing building specifications rather than commissioning new facilities.
Development economics nevertheless remain challenging. Construction costs have increased by more than 10% over the past year, limiting the ability of landlords to reduce rents without affecting project viability. Available space remains relatively restricted in most locations, with vacancy generally below 10%. Companies requiring facilities larger than approximately 10,000 sqm often need developers to construct buildings specifically for their operations, particularly when location and technical requirements are important.
Manufacturing investment is providing some support to the market as consumer-related logistics demand remains subdued. Production companies accounted for approximately 28% of industrial and logistics demand during the first half of 2026, while investment in machinery and equipment increased by more than 18% in volume terms. These developments indicate continued interest in expanding industrial capacity, although uncertainty in European manufacturing, particularly the automotive sector, is affecting the timing of some investment decisions.
Romania’s performance is consistent with a wider adjustment across European logistics markets. Colliers reports that industrial vacancy across the EMEA region stood at 5.8% during the second quarter, while construction activity was lower than a year earlier. Rental growth has also moderated, and most markets are expected to experience relatively limited changes in pricing over the coming year. These conditions suggest that the sector is moving away from the unusually rapid expansion experienced after the pandemic towards a more balanced relationship between occupier demand and available space.
For Romania, the outlook for 2027 will depend on whether improving consumer activity translates into renewed warehouse requirements and whether manufacturers proceed with planned investments. The expansion of motorway infrastructure could become an increasingly important influence on development decisions, particularly outside Bucharest. Although leasing volumes are unlikely to match the exceptional performance of 2025 in the immediate term, the combination of industrial investment, improving connectivity and comparatively limited vacancy continues to provide opportunities for logistics property development.
