Five logistics centers are bring built near Sofia

Despite the crisis 5 logistic projects are in process of construction in the surroundings of Sofia, says Forton International in its analyzes. Despite the negatives for the business trends, the levels of capital return in the sector of the industrial properties remain stable - around 13%. The reason is the less supply of projects in this sector.

With the biggest area is the project for building of Industrial Park near Sofia - Iztok. Its area will be around 118 000 square meters. The park is located in the region of Novi Han.

The least industrial areas - just 9000 square meters are projected in the Sofia Airport center which is considered the most ambitious logistics project in Sofia. It is located around the capital Airport and is close to the center of the city.

The realization of the logistics park near Bozhurishte has not started yet, which is going to be with area of 420 000 square meters.

The logistic areas remain the only sector in which there is neither oversupply nor unreasonable expectations. There is still space for development in this sector of the right product on the right place.

The most preferred by the tenants remain the zones with good transport infrastructure in the outskirts of Sofia. That is the reason most of the projects to be very close to the Trakia highway, the road to Belgrade, the railways near Sofia and close to the airport. In that way the manufacturing companies save time and money for transporting their production and supply of goods and materials.

The decrease in the renting prices did not pass this sector as well, there was a vacuum between the asked and the offered prices.

Under the pressure of the crisis, despite the real lack of a quality spaces, the tenants are not willing to pat the rents from the end of 2008, which were on levels of 30 - 40 euro per square meter. The investors from their side know that the competition is limited and the supply is not big and are trying to keep the offering levels high. The real deals are concluded at levels - 15 - 20% lower than the demanded.

According to experts the free industrial areas at the moment can find a tenant easier, than a buyer. This is a problem on the Bulgarian real estate market at the moment as 80% of the storage areas are owned by the manufacturers. In case they have to shrink their activity, as now in the time of crisis, they will have to look for tenants for their free spaces.

The property with tenant with a long term contract could be sold easier. The foreign companies which open factories in Bulgaria prefer to rent the places and in that way they are more flexible and can more effectively manage their money.

In buying or building industrial spaces invest mainly companies with specific production, which can not use any type of industrial spaces, such companies are the pharmaceutical companies and those of heavy industry.

Just 20% of the properties in the sector are being used for manufacturing. In Sofia the contemporary areas are about 1.5 million square meters.