Property Times Bucharest Office Q1 2014: Strong take-up activity | DTZ


In Q1 2014, two office buildings were delivered adding to the total office stock 23,400 m². At the end of the quarter, Bucharest’s modern office stock reached 2,069,000 m². For the reminder of the year another 102,000 m² are expected to be delivered in office projects like Green Gate, AFI Business Park II & III, City Offices, Green Court or Ethos House.

Total take-up figure this quarter is of 48,500 m², the largest share being represented by pre-lease transactions -51%. This is the strongest take-up figure registered in the last seven quarters. Another 12,000 m² were subject to renewal and renegotiation transactions.

The vacancy rate remained flat q-o-q and is situated around 16.7%. In total there are 345,000 m² of vacant office space class-A and B. Approximately 38% is located in Pipera sub-market. Central Business District and West sub-markets continue to register the lowest vacancy rates on Bucharest market.

There were no changes regarding the rental levels q-o-q. Prime headline rent remained situated around €18 / m²/month and will remain so throughout the first half of 2014. Starting H2 2014 a slight increase might occur considering that the vacancy rate in CBD is situated around 8% and no major projects are expected to be delivered in this particular sub-market.

(This article features excerpts from the full report – please download it here)