industrial

Gobant Office Designed By Cos

Cluj: Local office market revival

Cluj: Local office market revival 2560 1709 ROMANIA PROPERTY CLUB
Gobant Office Designed By Cos

Office Design by COS for Globant, Cluj

While the modern Class A office stock remained constant at 340,000 sq m, Cluj registered the most dynamic leasing market outside Bucharest in 2024. Close to 30,000 sq m were let in Cluj, a significant uptick compared to the past two years.

The city dubbed “Silicon Valley” of Romania attracted new employers in the IT&C sector, such as Yopeso and HN Services. Companies with a major presence, such as Betfair and Endava, chose to extend their leases, leading to significant renewals of 8,500, and 4,500 sqm, respectively. New entrants in Romania, such as Copeland, acknowledged Cluj’s leading role in nurturing a qualitative talent pool by opening a multi-disciplinary service center that will be a home for more than 200 professionals. Banca Transilvania, the leading financial institution in Romania, headquartered in Cluj extended its presence by renting nearly 4,000 sq m.

Thus, rents registered a slight uptick, ranging between 14 to 16 EUR/sqm. The vacancy rate is single-digit, lower than in Bucharest and other leading regional cities. The prime yield stands at 8.75%, reflecting the recent year’s volatility and increase in interest rates.

In the medium term, more than 70,000 sqm are expected on the market. In addition to the extension of Liberty Business & Technology Park, one of the most expected new deliveries is Iulius’s Group’s new 15,000 sq m development on the former Carbochim platform. Part of a landmark mixed-use development, the new office building will allow companies to benefit from the premium environment created by integrating an ultra-modern shopping destination, lush green areas, and leisure facilities. Iulius has already put its toll on Cluj, following the same transformative urban regeneration strategy applied in Iasi and Timisoara. The office component, under the United Business Center umbrella, features three separate projects built in 2008, 2014, and 2018, totaling 27,000 sqm. Companies that chose to work in UBC buildings include Endava, Genpact, Office Depot, and Analog Devices.

The Office is one of the emblematic business parks in ultra-central Cluj-Napoca. The 60,000 sqm of office and retail were built by Mulberry Development and NEPI Rockcastle custom to Cluj-Napoca market needs.

As this was an accelerated growth market, the business park was constructed in three phases between 2013 and 2017 with the end goal of delivering a 9,000 sq m united floor plate, that could host up to 1,000 employees on a single level. As the metro project is years in the making, The Office concept features 1,100 car parking spaces and up to 400 bicycle/motorbike racks.

The modern amenities, 200 seats capacity conference center, and visually appealing landscaping serve community building purposes for companies such as Deloitte, Yonder, 3Pillar Global, Bombardier, Betfair, Steelcase, National Instruments and Bosch. In 2019, Paval Holding added the landmark property to their portfolio for c.a. 130 million EUR.

Hexagon Offices is a Class A business complex delivered in mid-2019 by a joint venture between local entrepreneurs who managed to secure top-tier tenants such as Cognizant and Accenture. It exchanged hands for 32 million EUR at the end of 2019, being taken over by a Romanian family business.

Another considerable mixed-use development is Prime Kapital’s 17 ha urban regeneration project on the former Cesarom platform. In addition to a medium-sized shopping center and a much-needed residential component, the project should bring 49,000 sqm of offices to market. The master planning and permitting process is still under development, with a soon-to-be-announced timeline.

Silviu Babtan

SILVIU BĂBȚAN, Office Buildings Manager IULIUS Cluj

“2024 was an exciting year for our office component in Cluj-Napoca, as a consequence of a new stage of expansion for companies. We recorded one of the most significant transactions on the office market in Romania, the largest outside the Capital, to our knowledge, representing a new partnership for 8,500 sqm, with a single company, in the IT field. Also, in 2024 we signed new contracts and extensions for an area of ​​20,000 sqm, out of a total of 27,000 sqm totaling the three office buildings developed, in Cluj-Napoca, by IULIUS under the national United Business Center brand. Thus, approximately 50% of the transactions registered this year, in Cluj-Napoca, were for our office buildings. We are at 100% occupancy, but we are happy with the interest in new partnerships, in the context of the development of 15,000 sqm of premium office spaces, in the RIVUS mixed-use urban reconversion project, for which the IULIUS company announced the approval of the Zonal Urban Plan of to the Cluj-Napoca Local Council.”

Trc Park Cluj

Cluj: Strong activity in the industrial sector

Cluj: Strong activity in the industrial sector 2560 1920 ROMANIA PROPERTY CLUB
Trc Park Cluj

The Cluj modern Class A Industrial & Logistics stock remained stable at 420,000 sq m, registering a slight decrease in the vacancy rate to 4.3%, representing circa 18,000 sq m available.

Rents increased to 4.65 EUR/sq m, close to the prime asking rent in Bucharest – Ilfov, while the pipeline of buildings under construction is 17,000 sq m. The total leasing activity slowed down in the past twelve months.

The 7,800 sq m lease Cargo-partner signed in CTPark Cluj is the most meaningful transaction of 2024.

Transilvania Constructii is an active local player. In Cluj the Romanian developer owns a portfolio of three parks, totaling 161,000 sqm:  TRC Park Cluj, located in Tetarom III, TRC Park Transylvania, located east of the city, with access to E576 and TRC Park Cluj Airport. At the airport facility, the owner plans a refurbishment process, transforming the building’s visual impact while maintaining functional excellence.

There is new, strong active interest in securing production and logistics facilities in Cluj.

Lasselsberger is looking to invest nearly 200 million EUR in a new production facility in Sandulesti, for which it requested state aid in exchange for creating jobs.

German-based Stada recently inaugurated a new production facility in Turda, following a 70 million EUR investment, of which 20 represent state aid. It is the largest greenfield investment on the Romanian pharma market in the last two decades. The factory has a production capacity of 160 million boxes of medicines annually and will have over 300 employees in total. About 20% of the production will remain in Romania, while 80% will be exported to international markets.

Terapia, a SunPharma portfolio company, started construction works to upgrade its landmark facilities in Cluj and add sustainability features.

Knauf is working on a 76 million EUR investment in Huedin: a new factory with an annual capacity of 30 million sqm, which will produce the entire range of plasterboard boards, from standard to special ones for protection against fire, moisture resistance and superior sound insulation performance. The factory in Huedin is designed to meet the most demanding standards regarding energy efficiency and environmental impact, being equipped with the most innovative technology in the field of ovens and dryers.

The market is characterized by a strong presence of local developers and public industrial parks. Local companies recently applied for permits to build up to 100,000 sqm of industrial space in Gilau, while Reggia Capital & Real Estate plans a park displayed on 2.6 ha in Valcele, Feleacu.

Cluj City Hall approved the industrial park status for Parcul Industrial Est, a new project on 14 ha that will host companies in electrical equipment, construction, printing, and tools production. An industrial park status means there will be a tax deduction on land and buildings, in exchange for generating jobs and investments in the local economy. One of the most important industrial parks in Cluj is Tetarom. The city hall approved the Tetarom IV extension and started the bidding process for improving road access to Tetarom III.

Looking forward, the construction of the underground, metropolitan train, motorway, and new connections to the A3 highway (through Tureni, starting in 2025) shall generate new development opportunities in a region with a skilled labor force and tradition in diverse manufacturing.

Vat Vgp Arad – photo 002

VAT Romania breaks ground on the future factory for its operation in VGP Park Arad

VAT Romania breaks ground on the future factory for its operation in VGP Park Arad 1280 854 ROMANIA PROPERTY CLUB
Vat Vgp Arad – photo 002

On September 17, 2024, VAT Romania broke ground for its new factory located in VGP Park Arad, a strategic logistics hub adjacent to the A1 motorway and key European routes. VGP Park Arad stands out with its modern infrastructure and green energy options, providing a significant logistical advantage for efficient manufacturing and distribution operations.

The new location is designed to accommodate the mid-term growth projections and meets the increasing demand and technical complexity of the product portfolio. The manufacturing facilities, offices and an employee canteen will be united under one roof of more than 21,000 sqm. The building will be certified following the BREEAM (Building Research Establishment Environmental Assessment Methodology) sustainability standards for green buildings and will aim for the Excellent level of certification. The new facility will be fully operational by early 2026 with an expected move-in date in the second quarter of 2025 – ensuring a smooth transition and minimal disruption to the ongoing operations.

VAT, the globally leading developer and manufacturer of high-performance vacuum valves, multi-valve units, and vacuum modules, is leasing the hall to support their global strategy, creating also numerous job opportunities in technical fields.

The investment in the growth of VAT Romania will create many job opportunities in areas with highly technical competencies such as mechanical engineering, automation, CNC turning and milling, as well as support functions. The plant will also host engineering, IT and other functions that go beyond the ‘pure’ manufacturing scope, and which support the build-up of further competencies required for a lead factory.