RSS
Real estate : Colliers: over 750,000 square metres of office spaces could become vacant, in the Capital between 2012 -2014
The next three years will bring significant opportunities on the office market in Bucharest, as almost 754,000 square metres of office spaces will be under renewal and renegotiation according to a study of Colliers International Romania. The request will be determined by the rent contracts which will reach maturity between 2012 and 2014.
The Colliers study shows that over 90,000 square metres of this surface represent rent contracts which expire in 2012. In 2013 and 2014, the total surface of office space which could be vacant increases considerably, as a consequence of the expiration of contracts which were signed during the real estate boom, between 2006-2008. Thus, it is likely that a large part of the clients whose contracts end in 2012, 2013 or 2014 try to put to value the opportunities on the market to obtain better renting conditions.
The impact of the financial crisis modified the mechanisms of the office market, the majority of decisions being taken as there is a need for improving prices. At the same time, as the traffic conditions in the city worsen, accessibility became one of the most important characteristics for an office building, the presence of a subway station being essential. According to Colliers International Romania, the companies gave up the Central Business District, considered traditionally as the ideal area for headquarters, in favour of the more advantageous rents in the semi-central areas. The companies whose offices are placed in non-accessible areas will look, most likely, to move to buildings which are close to the subway, in spite of a higher rent.
Another possible scenario has in mind the tendency of the tenants to opt for the renewal of the contract in the existing space, as there are no better alternatives, which could cover the budget for the renewal the changing of location might mean. Over the last period, the developers chose to offer fit-out budgets as a stimulus in the process of drawing new clients.
Together with the office spaces which will become vacant over the expiration of renting contracts, over the next three years there will be new projects in Bucharest, especially in the semi-central areas, where there are already over 170,000 square metres of new offices.
‘In 2011, the new developers and the existing ones regained their optimism as regards the evolution of the office market in Bucharest and reconsidered the opportunities to build new office spaces. As it was demonstrated by the projects delivered or announced over the last 18 months, the new office buildings will try to address the needs which are more and more complex of their clients, through design and technical advanced specifications’ Maria Florea, associate direct in the department for offices of Colliers.
Colliers International is one of the global leaders in the domain of real estate consultancy, with more than 12,500 specialists who work in 500 offices in 61 countries.