Sofia’s suburban areas to grow into logistics parks

06.03.2008

Current supply of logistic space in Sofia still lags behind demand and rentals, which nowadays come to as much as 5-6 euro a sq m. The price is higher than in most countries from Central and Eastern Europe (CEE) region and rivaling prices in the United States and Western Europe. That said Andriana Petkova, managing partner in ProCon International Property Consultants, at a discussion on trends and new ideas in property investment, held on March 5.
Available infrastructure and piece acquisition prices were the biggest issues that had to be overcome by investors in logistics segment. Such developments usually spread on large areas of at least 200 000 to 300 000 sq m, which means that piece consolidation comes as a crucial item on the agenda.
If the average land price after consolidation surpass 30-40 euro a sq m, the contemplated industrial development is no longer acceptable in terms of simple cost-benefit analysis. This is why a lot of contractor restructure their projects into retail schemes, which generally rent at higher levels and poured resources could pay off in shorter time, Petkova said.

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