“Given deliveries of nearly 7,000 square meters in the third quarter, the modern stock of office buildings in Bucharest reached 2.219 million square meters. Another 71,000 sqm are likely to be delivered by yearend, as well as another 95,000 sqm in 2015 only in the northern and western zones. Developers continue to focus on class A projects, with special technical specifications,” CBRE report reads.
On the other hand, the demand for modern office spaces continued to grow in June- September 2014, exceeding 70,000 sqm, out of which the net demand (pre-leases, space expansions and new contracts e.n.) accounts for 80%.
According to the report, the most important aspect for the strengthening of the office space market in Bucharest is the stability of pre-lease contracts.
CBRE estimates total deliveries of nearly 150,000 sqm in 2015, and a vacancy rate of 13.5% by yearend and 12% by the end of 2015.
For this year, CBRE representatives say that the investment yield rate was cut by 25 percentage points in the third quarter, to 7.75%, on the backdrop of the stabilization of the main performance indicators (a lower vacancy rate, the increase of the demand and of the pre-lease transactions).