RSS
Real estate: Office space in Romania- stock reached 2.58 million sq.m.
The office stock in Romania is estimated at 2.58 million square meters, 14.2% of which (about 370,000 sq.m.) represent unoccupied areas, according to data supplied by CBRE company. Most available office areas are found in Bucharest, but big province towns have a big development potential, CBRE shows.
The capital city continues to be a rental market, considering the unoccupied rate of 15.4%. The relatively low level of areas in construction with delivery time 2014 might contribute to balance the market between landlords and tenants until the end of 2014.
In the country, the most developed towns for demand and offer of office areas are Cluj Napoca and Timisoara, where the cumulated stock is of over 250,000 sq.m. The relatively high level of areas in construction in Cluj Napoca set up the premises for potential transformation of the market into one favorable to tenants, CBRE consultants believe. On the other hand, the limited number of areas in construction in Timisoara, cumulated with constant demand from the tenants may turn this market into one favorable to landlords.
The other large province towns have a low stock of modern offices, especially those of the A class. The towns important for the Business Process Outsourcing and Shared Service Outsourcing segments are Bucharest, Cluj Napoca and Timisoara where important international companies have opened such centers. Moreover, Iasi is becoming more and more attractive with available labour force.
Rents for A class vary between 14-18 euro/sq.m/month in Bucharest and 11-13.5 euro/sq.m./month in Cluj and Timisoara. Anchor type tenants (over 4,000 sq.m.) can get important financial facilities in Bucharest dropping net rent by 15%. In the other big towns in Romania limited availability of this kind of large office areas determines the extension of the process of signing rental contracts.