There is a total stock of 606,500 m² of Class A and B office space in the Bulgarian capital Sofia, according to new Colliers International Bulgaria research. That is an increase of 10% in the first six months of the year.
Most of this office space in Sofia, say Colliers in their new Bulgaria Office Market Overview for the second half of 2007, is located in the city's suburbs. And more than 330,000 m² of Class A and B office space is currently being constructed in the suburbs.
The overall vacancy rate remained unchanged at 5.1% with increases in suburban areas and decreases in the Central Business District (CBD) and broad center.
Colliers International also reports that asking rental rates have continued their upward trend in the first half of 2007. Class A properties command asking rents ranging between €1226/m²/month across all sub-segments.
Atanas Garov, Managing Director of Colliers Bulgaria, said, "Our research shows that the office sector in Sofia is still growing steadily. But demand for office space is being driven mostly by expansion and relocations, with few new international market entrants."
Ivan Velkov, General Manager of Colliers Bulgaria, added, "Office rents in the broad center are nearly matching those of the Central Business District, although the figures in the CBD have been brought down by a few large transactions."
Philip Bay, Regional Director, Colliers International Southeast Europe, concluded, "I am proud of the high quality market research we produce. It is a valuable tool for clients, media and other real estate professionals, and just another reason why Colliers International Southeast is the leading property consultants in the region."
In 2007 Colliers International Southeast Europe was named Property Consultant of the Year for the region for the second straight year.
Click here to read the full report.