Office leasing in Bucharest reached 97,400 sqm in Q1 2024, up 71% compared to the same period of last year, while take-up transactions that cover relocations and new demand were flat year-on-year at 33,000 sqm, according to a CBRE report.
The biggest office renegociation closed in Q1 was for Genpact in Hermes Business Center for more than 29,000 sqm. This was the biggest transaction of this type closed in the past decade in Bucharest.
More than 66% of the office lease deals were made by tech and services companies, despite their adoption of hybrid work.
"The market for modern office space is dominated at the moment by a lack of new supply, a reality that is contributing to some extent to pressure on rents. However, this pressure is compounded by other components such as the cost of development, dictated by high interest rates and inflation in recent years, reflected in high indexation rates,” said Daniela Gavril, Head of Research at CBRE Romania.
Due to a limited amount of new deliveries, more developers are turning to investing in the upgrade of existing assets. For instance, Hagag Development Europe is renovating various properties in central Bucharest, while One United Properties is converting an office building into a residential project.
