RTR decided to extend its lease for the space in the North Gate building developed by Creativ Investment Grup of businessman Marius Ivan until 2018. The company uses 20,000 square meters there, which makes it one of the biggest office space tenants in Bucharest.
“The decision of Renault to renew the lease is a big vote of confidence for Pipera (north of the city i.e.) and the future developments in the area,” said Marius Ivan, chairman of Creativ Invest Grup.
The contract can be estimated at about EUR2 million a year, considering a reasonable EUR8/square meter/month rent for such space in the Pipera-Tunari area. A recent survey by consultant JLL Romania showed that asking rents in Pipera-Nord, where North Gate is, range from EUR10 to EUR12/square meter/month, and a tenant can negotiate rent down towards EUR6 per month for more than 10,000 square meters.
The parties involved did not comment on the value of the deal, also assisted by Compas Real Estate.
Pipera-Tunari rents are the lowest in Bucharest and can only compare to those in the south of the city, due to the area being rather difficult to reach, which caused a rise in the vacancy rate.
Renault said this summer it was considering moving the 2,000 employees of Renault Technologie Roumanie and Renault Commercial Roumanie into a single office complex. Renault Commercial Roumanie is currently renting space in West Gate Militari, in the west of the city.
(English version by Loredana Fratila-Cristescu)