May 22 (SeeNews) - E-commerce is expected to continue to drive the industrial real estate market in Bulgaria's capital Sofia, Forton, a strategic partner of Cusman&Wakefield for Bulgaria and N. Macedonia, said.
"Since the coronavirus outbreak, most occupiers have been cautious about their business and real estate operations, which resulted in weaker tenant activity," Forton said in analysis on Bulgaria's real estate market in the first quarter of 2020, published on its website earlier this week. "However, despite sluggish retail sales, e-commerce lockdown and is expected to maintain momentum."
E-commerce had a positive effect on the logistics market, generating increasing number of requests for premises within the Sofia city boundaries. Occupiers are interested in 1,000-2,000 sqm units for last-mile deliveries, it added.
Most speculative logistics property construction projects in Sofia are expected to be let before completion as the supply of modern space is limited, according to Forton.
The Sofia logistics property market registered weak activity at the beginning of the year, driven mostly by renewals and deliveries of owner-occupied space. With few leases and the completion of two mid-size warehouses, total take-up barely exceeded 9,500 sq m, it said.
Sofia's logistics space vacancy rate continues to gravitate around 2% with no expectations for significant change in the short term, Forton also said adding that stable indicators and favourable prospects generate investor interest in the logistics segment.
Yields are likely to slightly decrease in the next quarters, Forton concluded.