Ten new office space projects totaling more than 254,000 square meters were completed in the first nine months, real estate consultant CBRE data show.
The new deliveries took the vacancy rate in Bucharest from 8.7% in the second quarter to 9.3% in the third. On the other hand, the class A and B office space, with access to subway or public transportation, continues to see low vacancy rates, of less than 10%; if considering class A office space alone, the vacancy rate is 5.5%.
The total leasing activity increased by 15% in the third quarter compared with the same time last year to 84,300 square meters, 82% of which class A office space. Rentals accounted for 79% of demand, not considering renegotiations or renewals.
More than half of the space delivered in the first three quarters of 2019 is in western Bucharest, between Grozavesti and Politehnica subway stations. About 20% of the space delivered is in the north of Bucharest, while the city center, the central business district and Pipera got 10% each.
“Highest demand for office space rental in the first nine months of the 2019 came from the companies in the Computers & Hi-Tech and financial sectors, 47% and 16% of the demand, which got space for 13,500 and 4,700 employees. The most dynamic areas were the west of Bucharest, 31% of the volume of transactions, followed by center, 21%, and north and Pipera, 19% each,” said Tudor Ionescu, Head of Advisory & Transaction Services, Office, CBRE Romania.
The modern office space stock should reach 3.24 million square meters by yearend, according to the estimates of the real estate consultant, following the delivery of six projects with a total area of 81,600 square meters. Out of the amount of space expected to be delivered by yearend, 40% is pre-let, CBRE Research data show.
(English version by Loredana Fratila-Cristescu)