"The decline in leasing follows a record year in 2025 and points to a temporary cooling rather than a structural market shift," said Victor Coșconel, Partner and Head of Leasing at Colliers. "The market faces short-term pressures from domestic uncertainties like political tensions and weakening consumption, plus external conflicts complicating development plans."

Despite the downturn, nearly three-quarters of Q1 contracts represented new demand with positive occupancy impact, suggesting underlying market resilience. Manufacturing space accounted for over half of all deals, significantly above Romania's historical 20% average in peak years.

The current stock of industrial and logistics space exceeds 8 million sqm and could reach 9 million by end-2027 if developer interest meets stronger tenant demand. Romania still has a significant space deficit compared to other CEE markets relative to population and economic size.

"We don't believe one weaker quarter defines the market, especially with solid long-term fundamentals," Coșconel added. "Nearly 900 kilometres of motorways under construction could significantly accelerate sector development if internal factors are better managed."