RSS
Bucharest's modern office space stock at 3.3 ml sqm in Q2
Bucharest's modern office space stock reached 3.3 million sqm in Q2 2022, reveals a survey by real estate consulting company Cushman & Wakefield Echinox.
The handover of the second, 25,000 sqm phase of the AFI Tech Park project located in the Center-West area has propelled Bucharest's Center-West to the top position among the Capital City's office hubs, with a stock of 579,600 sqm; the Floreasca - Barbu Vacarescu area, which totals 569,700 sqm of office space, dropped to the second position, the cited survey notes.
The Dimitrie-Pompeiu area is third, with 440,700 sqm of offices, followed by the Capital's Center area, with 405,500 sqm. The Bucharest eastern and southern area are still trailing behind, with just 51,100 sqm and 41,800 sqm of office space, respectively.
In the reporting period, the companies traded 75,800 sqm of space, so that the total area leased in the first half of the year increased by 32 percent from the same period last year, to 156,600 sqm.
"New requests (excluding renewals/renegotiations of existing contracts) accounted for a substantial 66 percent of the total traded area, compared to 59 percent in H1 2021, with a positive effect on the vacancy rate, which dropped to 14.9 percent; the vacancy rate for class A buildings is 12.6 percent, and that for class B buildings is 22.7 percent," the survey states.
Bucharest reference rents increased slightly in the second quarter to 19 euros/sqm/month in the Central Business District, the first such increase after a period of six quarters of stagnation at 18.5 euro/sqm/month.
Projects totaling 134,000 sqm are currently under construction in Bucharest, being due for completion in 2022 and 2023, a level far below the average handovers in recent years; this is mainly the result of the blocking of the Zone Urban Plan, as very few projects received the construction permit in the last 12 months, the survey notes.
The independently owned and operated Cushman & Wakefield Echinox, Cushman & Wakefield's exclusive affiliate in Romania, comprises a team of over 80 professionals and contributors offering a full range of real estate consulting services to investors, developers, landlords and tenants.