Saturday, 15 March 2025
Romania’s industrial and logistics real estate market continued to expand in 2024, with new deliveries totaling approximately 400,000 square meters, bringing the country’s total stock to 7.4 million square meters, according to Colliers’ annual report. Increased interest from international and local investors, alongside major transactions such as the expansion of retailers LPP and Deichmann, reinforces Romania’s status as a strategic distribution hub for Southeastern Europe. While the long-term outlook remains strong due to a competitive labor force and ongoing infrastructure modernization, short-term economic and political uncertainties could slow the pace of expansion.
Lease agreements covered around 620,000 square meters in 2024, marking a 20% decline from the near-record levels of the previous year. However, according to Victor Coșconel, Partner, Head of Leasing, Office & Industrial Agencies at Colliers noted that this figure does not fully capture the market’s dynamics, as a substantial portion of leasing activity—including contract renewals and direct deals—remains unreported. Despite this decrease, the leasing volume still surpasses pre-pandemic levels when annual activity remained below 500,000 square meters. CTP and WDP continue to dominate the market, controlling two-thirds of the total stock, but other developers have become increasingly active. The entry of renowned German and American developers, such as Garbe and Hillwood, as well as growing investments from local players, signal a positive long-term market trajectory.
The share of leased spaces allocated to production increased significantly, representing one-third of all transactions for the second consecutive year. This marks a shift from the 10-15% recorded in previous years. However, many manufacturing companies still prefer to own their operational spaces rather than lease them, shaping the long-term structure of the market.
While Bucharest and its surrounding areas accounted for more than half of all industrial and logistics space leases in 2024, this share is lower than the decade-long average. Regional centers are becoming increasingly attractive for industrial and logistics operations, and in the long run, Bucharest’s dominance is expected to decline as other cities in Romania capture more investor interest.
Despite a national vacancy rate of around 5%, which limits tenants’ negotiating power, rents have stabilized. A built-to-suit (BTS) warehouse in a prime location now leases for €4.5–5 per square meter, up from under €4 per square meter before 2021, reflecting a significant market shift.
The largest transaction of the year was the expansion of fashion retailer LPP, which leased 42,000 square meters of warehouse space in northern Bucharest, bringing its total footprint to over 130,000 square meters and making it one of the largest tenants in Romania. Additionally, footwear retailer Deichmann pre-leased a 20,000-square-meter warehouse in Bucharest, which will be transformed into a regional distribution center. Auto parts manufacturer Federal Mogul signed a sale and leaseback agreement with WDP for its 19,000-square-meter factory in Ploiești, while an important FMCG distributor inaugurated its first temporary warehouse covering 10,000 square meters in MLP Bucharest West. Meanwhile, GXO completed the first phase of its project at the end of the year for retailer Trendyol, aiming at 50,000 square meters. Both transactions were facilitated by Colliers.
These transactions reflect the ongoing evolution of the Romanian logistics market and reinforce its role as a regional distribution hub for Southeastern Europe and, in some cases, for the entire Central and Eastern European region. The rapid improvement of infrastructure and full accession to the Schengen Area in 2025 further enhances Romania’s attractiveness for logistics investments. The country continues to benefit from its competitive labor costs, which remain the lowest in the EU relative to productivity in sectors such as transport and warehousing. Even after wage increases over the past decade, Romania remains competitive on both a European and global scale, drawing an increasing number of companies looking to expand their regional footprint.
Infrastructure modernization remains a key driver of economic growth and industrial development. Following a record-breaking 2024, which saw 1,200 kilometers of express roads completed, Romania aims to reach 2,000 kilometers by 2030. Over 600 kilometers of highways and express roads are currently under construction, with another 700 kilometers in the planning phase. The completion of major projects such as the Sibiu-Pitești and Iași-Târgu Mureș highways will significantly enhance connectivity and attract new investments.
Romania’s long-term potential remains strong due to its competitive workforce, strategic location, and ongoing infrastructure investments. However, its current stock of industrial and logistics spaces, expected to reach 8 million square meters by the end of 2025, still lags behind countries like Poland, which has four times the volume. Expanding to 11-12 million square meters by the end of the decade is a realistic target. In the short term, economic and political uncertainties could slow the pace of expansion, but large-scale transactions and strategic investments could drive positive market surprises, ensuring continued momentum for Romania’s logistics and industrial real estate sector.
Source: Colliers Romania
Photo: WDP Bucharest and Victor Coșconel, Partner, Head of Leasing, Office & Industrial Agencies at Colliers
