Approximately 20,000 sqm of logistics is expected to come on-line east of Sofia at the end of 2016, according to a report published by Forton Bulgaria. Most of this space has already been pre-leased with preliminary agreements signed in the third quarter. The strong performance of the speculative market has kept vacancy low, with rates around 2.2 percent for the Sofia area, according to the report.
The shortage of prime logistics space and stable demand has encouraged some developers to expand their projects. Construction of 10,000 sqm of GLA broke ground speculatively at the Sofia East industrial park. Glorient Investment BG, meanwhile, is planning the third phase of its East Ring logistics park in Novi Han. The project, offering 12,800 sqm of GLA, will get underway at the beginning of 2017. The operational buildings at the logistics park are already fully leased.
