DTZ Echinox: The total office supply for 2012 expected to reach 92,000 m²

The total office supply in Bucharest reached approximately 1.93 million m² at the end of Q3 2012. The most important office buildings delivered by October 2012 include Bucharest Tower Center (21,300 m²), UniCredit Tiriac HQ (15,000 m²) and the first phase of AFI Business Park, comprising 13,700 m² of lettable area.

The total annual supply for 2012 is anticipated to reach approximately 92,000 m², a similar level to the one registered at the end of 2011, which was considered as the year with the lowest volume of completions since 2004.

The net take-up volume (comprising new lease transactions, preleases and expansions) registered during the first 9 months of 2012 reached 131,000 m².

In terms of demand by subzone, the western and the central–northern areas gained the largest share of the quarterly net take-up volume.

In 2012, a marginal increase in headline rents was tracked in the city center and the Center–North area. At the end of Q3, headline rents remained stable reaching a level which ranged between €18.5–19.5 per m² per month for the central area. For the semi-central locations the rental level ranges between €13–16 per m&#178 per month, whilst a decreased level of around €9–12 per m&#178 per month was tracked for the decentralised business districts.

"Since the beginning of the crises period, 2012 was the year with the most pre-leasing transactions (announced and signed) for office spaces. For the next two years, new office deliveries amounting to 140,000 m&#178, will be developed in the Center-North and West part of the city, so we anticipate that the number of pre-leasing transactions will increase. Taking this into account, we've recently noticed a trend of multinational companies to consolidate and expand their offfice, that will have as a result leasing spaces in new office buildings located in easy access zones.", stated Madalina Cojocaru, Head of Office Department at DTZ Echinox.

For 2012 year-end we estimate a constant rental value for Bucharest business districts with premium locations remaining stable at €18.5–19.5 per m&#178 per month.

Source: DTZ

Related News