Sofia Logistics Market Vacancy Rate Up to 10% Q3

German supermarket chain Lidl opened recently its logistics centre with TBA of 36,000 sq.m. in the village of Ravno Pole. The project also has office and retail area amounting to 6,000 sq.m. and 4,000 sq.m. respectively. Photo by www.wavesystems-bg.com

The logistics market in Sofia region registered new stock increase of 12,684 sq.m., while the vacancy rate went up to 9.24% in the third quarter of 2010, shows a research by Forton, a property advisory company.

Thus, at present modern logistics space supply amounts to 527,434 sq.m., which represents mere 2.46% increase as compared to the second quarter of this year.

Development schemes delivered to the market include industrial projects of T-Logistics Center and BodyCar, an importer of paints for cars.

T-logistics Center delivered to the market prime warehouse space totaling 5,184 sq.m. The speculative development is located in Trebich, Sofia.

BodyCar completed its three-storey industrial and office building situated at Rezbarska Str. in Sofia with total built-up area of 7,500 sq.m. The building has underground parking area for approximately 20 automobiles.

At present there are industrial/logistics projects totaling 73,730 sq.m. under construction in Sofia region. Among the largest schemes are projects of Simid Sofia, Maria Kom and Elit Imoti.

Rent level for prime logistics space remained unchanged since Q2 2010 at 4 euro/sq.m. (service charge not included). The rates are about 30% down in comparison with the levels in 2006-2007, when they stood at 6 euro/sq.m.

Service charge (operational costs) is within the range of 0,5-1,0 euro/sq.m. Typical lease agreements are concluded for a period of 3 to 5 years with up to 3 months rent free.

There are two distinctive trends at present on the industrial market - relocation and rent renegotiation, the analysis shows.

FMCG, pharmaceutical companies, international brands operators as well as companies from the processing industry and technology sector remain among the key segment drivers.

According to Forton's research toward the end of 2010 and the beginning of the next year these companies will seek quality industrial space for rent. Thus, industrial parks currently at design phase may come into existence.

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