“Average vacancy rate for Bucharest remained stable in the third quarter of 2012, but differences registered between sub-market rates illustrate that competition between office buildings located in central and semi-central areas will increase in the following period,” reads Colliers’ latest market survey.
While the survey reveals a constant vacancy rate in the last three months, of approximately 17.5%, the actual vacancy rate is 1-2% higher due to the spaces available for sublease.
The survey reveals significant differences between vacancy rates, from 3% in Floreasca to more than 50% in Pipera. While for the semi-center and peripheral areas there were slight increases, the vacancy rate in central Bucharest went down as a direct consequence of the increased number of transactions in this area, 30% of the net take-up being in offices located in the central business district, according to Colliers.
“The available spaces in Victoriei – Charles de Gaulle represent 23% of the entire office stock in the area.”
Of the 190,000 square meters of office space in Pipera, 52% are vacant. In Victoriei-Charles de Gaulle, a quarter of the 227,000 square meters of office space has no tenants.
“In the following period, competition will intensify in Floreasca – Barbu Vacarescu area, as the projects commenced during the summer will start or started the pre-leasing process. Most of these developments are scheduled for delivery in 2013 – 2015, at a time when the contracts of most of companies in the area will come to completion,” said Viorel Opait, corporate services director of Colliers International Romania.
At the end of the third quarter, total Class A office stock in Bucharest reached 1.54 million square meters. New office supply totaled 20,000 square meters.
The entire leasing activity in the third quarter of the year reached 35,000 square meters, of which around 28,000 square meters represent net take-up. Net take-up in the first nine months of the year hit about 93,000 square meters, of which 40% was generated by pre-leasing.