Total demand for office leasing in Bucharest dropped by 25% to 236,000 sqm in Q3 compared to the same period of 2023, while new demand fell 11% to 82,000 sqm in the same interval due to the slowdown of the IT&C sector, according to a Colliers report.
At the same time, this year there are three consecutive quarters without any new office delivery, which is a first since 2005.
Colliers consultants also note that the market continues to be dominated by tenants occupying spaces between 1,000 and 2,000 sqm. Although there have been a few larger deals this year – including one of the most significant in the market's history, the Genpact renegotiation at Hermes Business Campus – the average size of a recorded transaction is under 1,400 sqm, below the 10-year average of nearly 1,500 sqm per year.
“There is clearly a slowdown in the IT&C sector, which is the main reason the market is going through a weaker period. So far this year, IT&C tenant transactions have totalled almost 70,000 square meters, making the quarterly average in 2024 nearly 24% lower than the quarterly average between 2015 and 2023. In contrast, non-IT&C lettings have totalled 166,000 square meters, or an average of 55,000 square meters per quarter in 2024, which is 14% higher than the quarterly average for the 2015-2023 period,” says Victor Coșconel, Partner | Head of Leasing | Office, Industrial & Logistics at Colliers.
Meansome firms continue to downsize their office space, even though the number of employees is similar to five years ago. In addition, companies remain cautious given the economic uncertainties and the fact that a stable working model has not yet been established.
