Total demand for office space in Bucharest stagnated compared to the previous year, reaching 286,100 square meters, a level comparable to 2021. At the same time, net demand increased only slightly, by 3%, to 140,500 sqm, according to JLL data.
In the last quarter of 2022, total demand for office space amounted to almost 85,000 sqm, similar to the fourth quarter of 2021. Net demand amounted to 34,800 sqm, also very close to the fourth quarter of 2021.
Just over 25% of the total demand for office space in Bucharest in 2022 came from the IT sector, followed by the professional services sector (12%) and the financial-banking sector (almost 9%).
In 2022, office buildings totalling a leasable area of 124,500 sqm were delivered in Bucharest, representing only half of the previous year’s deliveries (245,800 sqm).
Only one office building, Equilibrium 2, with a leasable area of about 19,500 sqm, was delivered in the fourth quarter.
“Occupiers face an increasingly need to transform as well as a difficult balance of cost pressures. Workplace diversity, ESG Targets/ green footprint and the need for higher quality space will support rise in office space refurbishments, a trend that is enhanced by both supply constraints on new development and dwindling demand for older space. This will result in a slowdown in expansionary demand, heightened sublease activity and a focus on renewals. At the same time, refurbished office space will be required if the market is to meet demand for Net Zero Carbon buildings”, said Madalina Iconaru, Consultant Office Agency at JLL Romania.
Deliveries of office buildings will remain low in 2023, at around 104,000 sqm, according to JLL specialists. The most important projects expected are Phase 2 of the One Cotroceni Park (34,500 sqm), Phase 2 of the U-Center (33,200 sqm) and the A1 building of the @Expo compound.