All segments on the office space transactions market reported positive results in the first quarter of the year. Thus, compared with the first two quarters of 2012 and 2013, the first quarter of 2014 reported an average increase of approximately 17%, according to Esop Consulting.
“The first quarter results confirm the positive expectations for 2014. The higher volume of trading on the office market was mainly triggered by the important hike in the transactions with new offices (by approximately 43% compared with the first quarter of 2013), given that contract renewals registered a 37% fall,” stated Mirela Raicu, manager of Corporate Office Division with Esop Consulting.
Thus, new rental contracts for spaces in already existing buildings represented the biggest share of the market, with a total 24,784 sqm, down from 32,511 sqm, a drop which was recovered by pre-lease contracts (space rent in a building before it is available for use), which rose from 2,670 sqm to 19,100 sqm. At the same time, space extensions totaled 7,400 sqm, from 600 sqm in the first quarter of 2013. Contract renewals totaled 11,400 sqm compared with 18,111 sqm in 2013.
In 2013, the transactions on the office market totaled 300,000 square meters, with contract relocations, renegotiations and renewals representing over 80%.