DTZ data says rents increased by 3% in the first quarter to a level ranging between EUR13-16 per sq m per month in semi-central locations, and EUR10-12 per sq m per month for the business districts on the edge of the city.
“For 2012 year-end we estimate a constant rental value for Bucharest business districts including the premium locations which will remain stable at EUR18.5–19.5 per sq m per month,” says a DTZ press release.
Bucharest’s total office supply slightly surpassed 1.84 million sq m at the end of 2011, with only 2500 sq m of new supply in the first quarter, thanks to the completion of the Barbu Vacarescu project developed by Expert RoInvest Development.
“The planned supply for 2012 is anticipated to reach approximately 100,000 sq m, representing an increase of 12% compared to 2011. For 2013 an additional supply of around 130,000 sq m is expected to be completed, thus bringing the office stock from Bucharest to a level above 2 million sq m,” the press release says.
The net take-up volume at the end of 2011 reached 225,000 sq m with the second quarter at the forefront of the occupational activity, amounting to around 40% of the annual total.
“The last three months of 2011 registered the lowest activity in the last two years with circa 20,000 sq m tracked as net take-up.
On a quarter-on-quarter comparison basis, a significant increase in the take-up volume was reached in Q1 2012. Thus, the net take-up volume (comprising new lease transactions, pre-leases and expansion deals) reached 46,000 sq m including the largest transaction tracked in Q1 – Raiffeisen Bank’s lease of 22,946 sq m in Sky Tower. It should be noted that this transaction involved a tenant and a landlord within the same group.”
In terms of demand by subzone, the central–northern area (Barbu Vacarescu – Floreasca – Charles de Gaulle Square – “Presei Libere” Square) had the largest share out of the quarterly net take-up volume, reaching 65%, according to DTZ data.
Financial service companies dominated the rental market, formally. Leaving out the intragroup Raiffeisen – Sky Tower transaction, the take-up volume was 21,700 sq m, with the industrial/ manufacturing- trading and business/ professional services each making up 23%.
“By the end of 2012 we estimate a level of transactions similar to the volume registered in 2011, with the pre-lease activity increasing its share in the total take-up volume. In Q1 2012 the vacancy rate decreased from 13.9% registered in Q4 2011 to 13.4%. The vacancy rate recorded a significant decrease in the last 12 months meaning 250 basis points,” DTZ analysts estimate.
The lowest vacancy of office space is still in the central and western parts of the city, while the highest vacancy rates remain in the north.