The building will be the first at ProLogis planned distribution park west of the city along the country's primary transit corridor, the A1 Motorway. Onofrei says ProLogis is developing the park because the supply of modern distribution space in Bucharest is already constrained--vacancy is between 2% and 5%m he says--and demand is expected to increase due to strong GDP growth, increased levels of domestic consumption and the country's recent entry into the European Union. The facility is scheduled for completion in the first half of 2007.
Kuehne + Nagel is one of ProLogis' largest global customers. ProLogis did not reveal the negotiated terms of the deal. The average lease rate for modern distribution space in the region ranges from euro $4.20 to euro $4.80 per square meter.
ProLogis Park Bucharest is located 14 miles from downtown Bucharest. Keune + Nagel's building is one of two similarly-sized buildings currently under construction. The park is designed to accommodate 3.4 million sf in 12 buildings.
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