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Industrial Market
Fourth Quarter | 2018


Market Outlook During 2018, the industrial & logistics stock in Romania
Prime Rents: No change is expected in the following period. continued to increase, reaching a total volume of 3.48 million
sq. m. In Q4 2018, new supply amounted to approximately
Prime Yields: Given the limited availability of prime assets, slide 185,000 sq. m. With a total stock of more than 1.65 million sq.
yield compression is expected in the following
months. m, Bucharest remains the main logistics hub in the country.
Supply: The level of new supply is shown in developers’
confidence in the market.
Occupier focus
Demand: Demand remains on a positive trend, with both retail
and industrial companies having expansion plans
The last quarter of 2018 was the best performing one in terms
of demand, with 286,000 sq. m transacted, recording a 75%
Prime Industrial Rents – December 2018 increase compared with the previous quarter. Net take-up
represents a share of approximately 80% from the total take-up.
Bucharest 4.25 51.0 5.40 0.0 1.2 In Q4 2018, Bucharest was the most sought-after destination by
Brasov 3.75 45.0 4.77 0.0 3.2 tenants looking to expand their operations, given that more than
Timisoara 3.75 45.0 4.77 0.0 3.2 half of the total demand was recorded in the capital city.
Constanta 3.75 45.0 4.77 0.0 3.2 Bucharest was followed by Deva, with a share of 15%,
Prime Industrial Yields – December 2018 Timisoara – 14% and Ploiesti – 11%.
(FIGURES ARE GROSS, %) Q Q Y HIGH LOW In the last quarter, the most active tenants were key retail and
Bucharest 8.75 8.75 8.75 12.00 8.75 FMCG companies, such as Auchan, Carrefour, Procter &
Brasov 8.75 8.75 9.50 10.50 8.75 Gamble or Pepsi, who have decided to consolidate their storage
Timisoara 8.75 8.75 9.50 10.50 8.75 areas.
Constanta 9.00 9.00 9.50 10.50 9.00
With respect to the yield data provided, in light of the changing nature of the market and the costs implicit in
any transaction, such as financing, these are very much a guide only to indicate the approximate trend and Investment focus
direction of prime initial yield levels and should not be used as a comparable for any particular property or
transaction without regard to the specifics of the property. WDP acquired a 23,000 sq. m warehouse in Brazi (near
Ploiesti) from Carrefour in a sale and lease-back (for another
Recent performance
ten years) transaction. Prime industrial yields remained stable,
Yield - Country Average Yield - Prime
at 8.75%, but we expect a slight compression in the following
Rental Growth - Prime Rental Growth - Country Average
13.00% 15.0%
Rental growth (y/y)

11.00% 10.0%

9.00% 5.0%
With more than half a million sq. m planned for delivery in 2019,
7.00% 0.0%
the industrial & logistics market will continue to develop at the
5.00% -5.0%
same rapid pace. Taking into account the increasing demand
3.00% -10.0%
recorded last year, developers are mainly focused on building
Dec-08 Dec-10 Dec-12 Dec-14 Dec-16 Dec-18
on a speculative basis. In terms of occupancy costs for industrial
& logistics spaces in Romania, prime headline rents will remain
relatively stable.

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