“The 2012 supply pipeline has been downsized to 100,000-120,000 square meters (37% is pre-let or owner occupied). In addition, 27% of the pipeline has uncertain delivery dates due to pending legal issues or lack of leasing activity. Therefore, we expect to witness a lower level of new office supply in 2012 compared with that of 2011,” reads the report.
According to Jones Lang LaSalle, larger real estate projects have been announced for 2013- 2014, but with the exception of Sky Tower, developed by Raiffeisen Evolution, none of them have a firm delivery date.
“In the next couple of years, annual take-up will remain in the range of 200,000-220,000 sqm. Vacancy will start to decrease unless we see further surplus office space returned to the landlords,” shows the report.
The overall vacancy rate (for Class A & B) increased tepidly to 15.6% in the first quarter, mainly due to the availability of larger spaces in buildings previously reported as being fully occupied.
“In some cases, parts of the previously leased areas were returned to the landlords, instead of being sub-let by the occupier,” reads the report.
Rents are quoted between EUR19 -19.5/sqm per month, with no significant changes.
LaSalle expects a marginal increase of rents, although not before the second half of the year, due to a shortage of modern supply in Bucharest’s central business district.
Bucharest’s class A & B office space stock stands at about 1.9 million square meters.