“In the short term, we expect an increase in the vacancy rate, given that a series of large occupants have started sub-leasing processes of spare areas. The market continues to grow out of some inertia, given that most projects under construction were started before the pandemic, but in the medium and long term we believe that the bet on the office market will prove to be a winner, with recent studies showing that employees are not willing to give up working from the office and work exclusively from home,” said Madalina Cojocaru, Partner Office Agency at Cushman & Wakefield Echinox.
Demand in the first three quarters amounted to 160,000 square meters, down 43% compared with the same period last year, as trading activity was dominated by lease renewal and renegotiation contracts, which accounted for almost 46% of request.
While the second quarter, under the impact of the restrictions imposed by Covid-19 pandemic, was one of the weakest for the Bucharest office market in the last decade, with a traded volume of only 44,500 sqm, demand showed weak signs of return in the third quarter, when the traded volume amounted to 63,600 sqm.
Despite the difficult context, the office market in Bucharest continued to grow and new spaces totaling 124,000 sqm were delivered in the first three quarters. AT the same time, 388,000 sqm of offices are under various stages of development.
The commercial stock (for leasing) of office buildings in Bucharest reaches about 2.9 million sqm, while other buildings with an area of around 150,000 sqm are occupied by the owners.
The most important office projects under construction are One Cotroceni Park, J8 Office Park, Globalworth Square, U Center, One Tower, Miro Offices, Tiriac Tower, Dacia One, Millo Offices, @Expo or Sema London & Oslo. For some of these projects under construction, developers have already signed pre-lease contracts with various tenants.