The Best Semester for the Bucharest Office Market

H1 2014 was the best semester for the Bucharest Office Market in the past six years. In the first six months of this year have been leased 108,000 square meters of office spaces in Bucharest – the largest volume of rentals in one semester since 2008, according to a report from the real estate consultancy company DTZ Echinox. The demand for office spaces has increased gradually in the first part of this year, and this trend will continue in the following quarters, declared Madalina Cojocaru, head of office department of DTZ.

“The tenants continue to prefer to relocate into existing buildings or in buildings that will be delivered within 6 to 12 months. This behavior is encouraged by the occupancy costs and by the quality of the new office spaces delivered. We identify in the market big companies looking for solutions to consolidate their operations, but also companies interested in opening new divisions in our country, which brings an interesting perspective over the new real estate developments”, she declared.

In Bucharest, the office spaces stock reached at over 2 million square meters, and in the first half of the year have been delivered five new buildings, with an overall GLA of 68,500 square meters – Hermes Business Campus, Metropolis Bravo, AFI Business Park II, Green Gate and Floreasca Cube. The representatives of DTZ declared that the Center-North area of Bucharest remains the most attractive for office tenants, with a weight of 55% of the surface leased in H1 2014, followed by the West side with 15% and Pipera area with 13%.

The largest part of the demand (over 52%) came from technology companies and from mobile phone companies, followed by production companies and industrial companies (15%). The new demand – expansions and companies newly arrived in Romania – is 40% larger than the value registered in the same period of last year and it represents 28% of the overall volume of office leases. According to the DTZ report, the vacancy rate reached at 15.7% at the end of the first half of this year, and at this moment, there are 330,000 square meters of office spaces available for rent in Bucharest. The prime rents in H1 remained stable at 18 euro/ square meter/ month.

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