JLL said in a statement that the economic crisis triggered constant rent rates and reduced the rent gap between certain areas.
In 2008, before the crisis, rent rates stood at EUR22-25/square meter in Piata Victoriei Square, EUR18/sqm in Floreasca and EUR16/sqm in Grozavesti. In 2012, however, rents fell to EUR16-18/sqm in Piata Victoriei, to EUR14-16/sqm in Floreasca, to EUR14-15/sqm in Grozavesti (central-western area) and to EUR12-14/sqm in Dimitrie Pompeiu.
“This evolution is the result of tenants’ putting pressure on rent rates and the relocation process was not based on employees’ accessibility to office, but pn low rents. In crisis periods, the pressure on costs is so high that the trend is deemed natural. Thus, not only did rents fall in each area but the rent gap between certain areas followed the same trend,” according to JLL consultants.
They also said that 80% of the office space demand in Bucharest comes from three areas: central, western and Floreasca where half of the renting activity is concentrated and new projects are to be developed in the future.
Floreasca has attracted over 50% of the office space demand in 2014 and is followed by Piata Victoriei with 10.53% and Bucharest’s central-western area with 7.63%.