Industrial supply in Sofia catching up with demand
Industrial developers have added, 72,500 sqm of stock in and around Sofia over the past three months, according to a new report by Cushman & Wakefield Forton. It writes that as of the end of June, there were 202,000 sqm of new industrial space under construction, of which 40 percent is available for rent. There was 45,300 sqm of take-up in the first half of the year. The most important completions in the second quarter were the expansion of the Behr-Hella Thermocontrol production base, the Speedy courier center in Bozhurishte, the new Equinix data center to Sofia Airport and the DSK Bank Document and Archives storage center in Industrial Park Sofia - East. Cushman & Wakefield Forton reports that stable rent levels (€3.60 to €4.50) and low vacancy have intensified investor interest in Sofia.
"The industrial real estate market is gradually overcoming the shortage of modern space," says Joro Angelov, manager of Industrial Property and Land Development. "The volume of newly completed projects is relatively higher than in the same period last year, which is indicative of the redevelopment in this segment. We expect the share of vacant rental space to remain close to current levels, as the projects completed during the period are mainly for custom use and construction."