Colliers: 2024 is shaping up to be another strong year for the industrial and logistics market

The first three quarters of 2024 saw positive developments in Romania’s industrial and logistics real estate sector. Total rental demand reached 520,000 square meters from January to September, marking an 8% decrease from the same period last year, according to Colliers data. This data includes only public rental transactions reported in the local real estate forum or publicly disclosed by companies through financial reports and press releases. Colliers consultants note that this trend aligns with recent patterns, showing strong transactional activity for out-of-town rental spaces, while demand for dedicated manufacturing spaces is capturing an increasing share of the total.

“There is a significant volume of direct transactions, primarily renegotiations but not exclusively, that are not publicly reported. As a result, the total leasing volume is likely much higher, contributing at least an estimated 30% to the overall transacted volume. After the first three quarters, we can confidently say that 2024 is shaping up to be a strong year. Over half a million square meters of industrial space have already been leased in Romania, and several large deals expected in the final months could bring the total for the year to a solid result of at least 700,000 – 800,000 square meters”, says Victor Coșconel, Partner | Head of Leasing | Office & Industrial Agencies at Colliers.

More than 42% of the space leased between January and September 2024 was in warehousing areas around Bucharest. However, this percentage has decreased significantly from 2018-2020 levels, when 60% to 70% of leasing activity was concentrated near the capital. Colliers experts note that this shift is a natural trend, driven by a variety of factors supporting this evolution.

“The development of infrastructure in regions of the country that previously faced challenges has increased developer interest in these areas. Additionally, factors such as labor availability, competitive costs, and the nationwide expansion of retailers are driving rental demand beyond Bucharest. This doesn’t mean interest in the capital will vanish; rather, it will likely decrease, following trends similar to those observed in Poland”, explains Victor Coșconel.

According to Colliers data, the stock of industrial space in Poland’s capital has grown 2.8 times since 2010, reaching nearly 6.6 million square meters by mid-2024. However, Warsaw’s share of the national industrial space has decreased over this period, dropping from over 40% to below 20%. Currently, Bucharest accounts for just under half of Romania’s total industrial space stock, which stands at 7.5 million square meters.

By sector, data from the first nine months of the year indicate that the consumer sector continues to drive the largest share of leasing activity, either directly or indirectly, through 3PL logistics companies working with retailers. Colliers consultants note, however, a significant increase in manufacturing activity, which accounted for about 33% of total leased space from January to September 2024—well above the pre-pandemic level of 10-15%. This trend is also supported by increased investment in the Romanian economy. According to data from the National Institute of Statistics and Eurostat, gross fixed capital formation is near all-time highs in real terms, Colliers experts underline.

“In 2018-2019, our reports estimated that the stock of industrial space could reach 7-8 million square meters by 2030. At that time, the stock was below 4 million square meters, and the market was growing at a relatively slow pace. Since then, we have already reached that threshold, and the target of 10 million square meters by the end of the decade is looking increasingly realistic. If we manage to avoid a challenging global economic scenario or a major escalation in geopolitical tensions, the completion of highways currently under construction could further accelerate this growth, following the Polish model. Poland has expanded its industrial space stock more than fivefold since 2010, surpassing 33 million square meters this year”, concludes Victor Coșconel, Partner | Head of Leasing | Office & Industrial Agencies at Colliers.

Bog’Art Building Management names Tudor Marchiș as CEO

The appointment of Tudor Marchiș as the head of Bog’Art Building Management marks a milestone for the company and the local facility management market. Under his leadership, Bog’Art Building Management aims to elevate industry standards by leveraging the expertise and strengths of the Bog’Art Group in construction. The focus will be on delivering high-quality services and integrating sustainability principles, thus contributing to the development of a more responsible and efficient market.

Tudor Marchiș brings over 15 years of international experience, during which he managed more than 7,000,000 square meters and led teams of over 10,000 employees within the largest construction and facility management group in India. With an innovative vision, he aims to transform building management in Romania, emphasizing efficiency, technology, and sustainability.

“Building maintenance is not just about extending the lifespan of equipment; it plays a crucial role in reducing the carbon footprint. Technology and digitalization are key tools we use to quantify, optimize, and monitor the facility management services we provide to our clients,” stated Tudor Marchiș.

Specifically, Bog’Art Building Management contributes to reducing the carbon footprint through customized solutions derived from data collected in energy efficiency audits. This enables building owners not only to save costs but also to actively contribute to environmental protection. Bog’Art Building Management will continue to implement advanced technological solutions that allow real-time monitoring and control, providing clients with direct access to data on equipment performance and services rendered. This not only aids in better planning and reduces operational costs but also ensures continuous oversight, fostering transparency and quick responses for any necessary interventions.

Taco Bell expands in Romania

Sphera Franchise Group, the largest operator in the foodservice industry in Romania, which manages the Taco Bell brand in a franchise system, has expanded its network by inaugurating its fifth unit in Bucharest, in Plaza Romania. The chain of restaurants with Mexican-inspired products thus continues its expansion strategy on the domestic market, reaching a portfolio of 16 units nationwide.

The value of the investment in the new restaurant was approximately EUR 500,000.

“Taco Bell recorded a H1 with a net profit of over RON 0.5 million this year for the first time. Although we are already present in 10 major cities, we still see significant development potential in the Bucharest market and other urban areas in Romania, where interest in Mexican-inspired cuisine is growing,” said Costică Mișacă, General Manager, Taco Bell Romania.

Taco Bell entered the local market in 2017, being the third brand in the Sphera Franchise Group portfolio, alongside KFC and Pizza Hut.

Start Priority Real Estate Group expands into Bucharest hotel market

The real estate group Start Priority, owned by the Ioana Carmen and Cornel Petruț Ion families, is preparing the construction of a large-scale event hall and an adjoining hotel right next to a future hospital in Sector 6 in Bucharest and close to its and the Niculae family’s project, Exigent Plaza.
The Ion family bought a 14,800 square meter plot of land on Timișoara Boulevard, no. 103B, last year, on which it has already started working on authorizing a 2,900 square meter event hall and a 30-room hotel.

“We noticed a lack of large-capacity event halls on the Bucharest market and after purchasing this land, we decided to enter this niche. The construction will include 4 distinct halls that can be connected and form a hall with a total capacity of 600 people. We will also set up 30 hotel rooms here, which will complement the events area,” said Cornel Ion.

Source: Profit.ro

Ştefan Mandachi Invests EUR 5 Million in Premium Housing Complex in Miroslava

Entrepreneur Ştefan Mandachi, who founded and later sold the Spartan restaurant chain, is investing EUR 5 million in a complex of 12 premium villas in the richest commune in Romania, Miroslava, located 8 km from the city of Iaşi.

“We have designed a concept of premium housing, with an approach oriented towards quality and exclusivity, originality and comfort, which meets the wishes of those who want a spacious, modern property, close to nature, but also to the city. The houses will be personalized and adapted to the style of the owners,” said Ştefan Mandachi.

Prices start at EUR 375,000 (excluding VAT), and the first villa, a showroom, will be ready early next year. The houses in the Miradis complex are not sold at the project stage, but already built.

Impact sold 73 apartments in October for EUR 8 million

Impact Developer & Contractor, real estate developer of the Greenfield and Luxuria Residence neighborhoods in Bucharest, had sales of EUR 8 million in October, a monthly maximum in the last five years.

The company sold 73 apartments, half of which were 2-room apartments, followed by studios (30%) and 3-room apartments (17%). These were transacted in Greenfield Băneasa.

“By the end of October, GREENFIELD Băneasa already had 231 pre-sold units, which ensures the premises for a sustained pace of sales, estimated to continue in the same trend until the end of the year and the beginning of next year, in the absence of legislative changes regarding the increase in the VAT rate in 2025,” the company reported

Orange invested over EUR 7 mln in the renovation and modernization of the Telephone Palace

Orange Romania reopens the Telephone Palace, a historical monument of Bucharest, located on Calea Victoriei, after investing over EUR 7 million in works aimed at consolidating and modernizing the building.

The company has set out to reunite its teams in Bucharest in two adjacent projects: Tandem, the headquarters, located on Matei Millo Street no. 5, and the Telephone Palace.

“This year, we achieved two important objectives – the merger between Orange and Orange Romania Communications and the reunion of our teams in Bucharest. We are proud to have brought the Telephone Palace back to life and, at the same time, aware of the responsibility we have to preserve this emblematic building. Being a historical monument, the reopening of the Telephone Palace involved a considerable effort, as well as significant investments,” says Julien Ducarroz, CEO of Orange Romania.

Lion’s Head Partners with CIJ Awards Romania 2024

CIJ EUROPE is proud to announce that Lion’s Head will be a partner of the prestigious CIJ Awards Romania 2024, set to take place on December 4th at the Radisson Blu in Bucharest.

Lion’s Head is the owner and manager of quality and sustainable income producing commercial properties in Central and Eastern Europe, current portfolio including real estate actives in Bulgaria and Romania. The company focuses on prime offices with international blue-chip tenants, backed by AG Capital and Old Mutual Property. In Romania, Lion’s Head is the owner and manager of Oregon Park, a class A office complex, composed of three 7-storey buildings, offering over 70,000 sqm of office space. By committing to sustainability and excellence, Oregon Park managed to attract multiple high-profile tenants, including Fortune 500 companies and won the prestigious SEE Real Estate award “Best Office Project 2019”. For more information, visit http://www.oregon-park.ro.

The Lion’s Head-owned development has made a genuine commitment to sustainability through the use of Zero Carbon technologies, energy efficient building systems and recyclable materials. Lion’s Head project Oregon Park is also certified BREEAM Excellent and has achieved at the end of 2023 and renewed since, the Well Health & Safety certification, a standard offered by The International WELL Building Institute (IWBI) that recognizes compliance with a set of quality standards to ensure a working environment with a beneficial impact on the health and well-being of employees.

The CIJ Awards Romania 2024 will recognize outstanding achievements across various categories, including residential, commercial, and mixed-use developments. This high-profile event will bring together leading professionals and highlight the latest trends and successes in the Romanian real estate market. For more details about the event, please check out our website: https://awards.cijeurope.com/cij-awards-romania/#about

THETA Furniture & More Partners with CIJ Awards Romania 2024

CIJ EUROPE is proud to announce that THETA Furniture & More will be a partner of the prestigious CIJ Awards Romania 2024, set to take place on December 4th at the Radisson Blu in Bucharest.

THETA Furniture & More is one of the most relevant local integrators of interior design & fit-out solutions, with a history of 15 years in the industry. The company, founded in 2008, specialized in complete design and has delivered over 400,000 sq m of interior space refurbishment for over 1,800 customers, local and international companies, located in iconic buildings such as AFI ( Park, Loft, Cotroceni -TrickShot restaurant, DAAR jewelry shops) , Globalworth Tower, Ana Tower Building, Vastint, One Cotroceni, The Mark Building, BBP – Miorita , Oregon Park, U-Center ( Glovo offices), Iride Park ( Provita Nord Hospital ), Enayati Medical City, Hotel International Sinaia (Restaurant area) , Otopeni Airport ( Restaurants: Maison Pradier-Dnata, City Grill : Buongiorno & Gloria Jeans – Custom made furniture), Iasi Airport ( standard furniture Kush&Co.).

The safety and well-being of people is the engine of any of their projects, whether we are talking about Office, Commercial, Healthcare, Hospitality, Horeca, Industria& Logistic, Theta Furniture & More is one of the biggest Romanian fit-out providers having it’s own 5000 sqm custom-made furniture production factory in Ploiesti; employing over 100 people. THETA Furniture & More professional team has significant experience in managing complex projects starting from the designing and planning phase and to implementation and delivery: interior design, architecture, and MEP work, custom & standard furniture consultancy and production.

Supernova opens retail park in Croatia’s Jastrebarsko

Austrian privately-owned real estate company Supernova has opened a retail park in Croatia’s Jastrebarsko.
Supernova Jastrebarsko is located in the centre of the town and includes a range of stores and restaurants.

The retail park covers an area of 4,673 square meters.
Supernova currently operates 14 shopping malls and retail parks and four solar power plants in Croatia, according to data on its website.

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