Romania's logistics real estate market lags behind in terms of small-size formats

Besides the traditional larger formats, small business units (SBU) and last-mile logistics (LML) are becoming more attractive, explained Victor Coșconel, Head of Leasing, Office & Industrial Agencies at Colliers, commenting on a report compiled by the real estate consultancy firm.

Figures show, however, that Romania - the fifth logistic and industrial market overall in the region - lags behind in terms of such small-size formats.

Typically, rents and service charges are significantly higher than in standard buildings, as their locations and ability to adapt to needs result in higher construction costs.

Romania's truly modern stock is limited and only in recent years has it shown signs of more robust growth, says Victor Coșconel. "If we are looking strictly at SBUs, there are only a few modern storage schemes that we can consider, and these will serve as a testing ground to see if there is potential."

The total stock of SBU/LML space in the CEE-15 countries accounts for more than 3 million sqm, with the greatest amount, approximately 2 million sqm, located in Poland, according to Colliers' report "ExCEEding Borders Small Business Units & Last Mile Logistics Sector in CEE-15."

SBU/LML market across the CEE-15 countries is at different stages of development, with Bulgaria having the biggest share in these spaces of its I&L stock, with 59% of its total supply.

The largest amount of space is located in Poland, with 2 million sqm, while there are no typical SBU/LML schemes in Albania and Bosnia and Herzegovina.

(Photo source: Colliers)