Slight Decrease in Rental Rates for Warehouses

01.02.2010

Logistika Magazine Issue 1 / February 2010

Colliers International Bulgaria presented its reports for the first half of 2010. The analysis of the consultants on the second half of 2009 shows that the industrial real estate market was influenced considerably by the reduced exports and the overall economic crisis. In a situation of reduced economic activity and consumption, the main factor that influenced the dynamics of the market was the market entry of discount chains.

The completion of several speculative projects and weaker demand in Sofia led to an upward trend in vacancy rates. Vacant speculative warehouses reached 55,000 sq.m in early 2010, which is the highest level for the past few years.

The completion of several major projects is expected in the first half of 2010, including the logistics centers of DB Schenker, Billa, Lidl, and Univeg. Because of limited demand, prime rates in the coming six months are set to decrease slightly.
In the short term, higher demand is expected on behalf of retail operators. An increase in demand is also expected for facilities with temperature control, on behalf of foods retailers and pharmaceutical companies.