Companies in Bucharest that operate in modern office buildings have monthly occupancy costs ranging between €175 and €500 per employee, according to an analysis by Cushman & Wakefield Echinox.
The analysis takes into account rental costs, service charges, operational costs (water, electricity, internet, consumables, cleaning, reception), as well as fit-out and furnishing costs, amortized over a five year period - the average duration of a rental contract in the Bucharest office market.
The result is also influenced by the density of office space, with most companies allocating between 8 and 12 square meters per employee, including the share of commonly rented offices, such as conference rooms, kitchens or reception areas.
The most significant costs are those with the net effective rent, which may vary between €8 - €17.5 / sqm / month, followed by the fit-out and furnishing costs, which also vary between €300 and €750 / sqm, corresponding to a monthly amortization cost between €5 and €12.5 / sqm.
Taking these parameters into account, the occupancy costs per employee range from €175-180 / month in areas such as South, East or Pipera North and may even exceed the threshold of €500 / month for employees working in the CBD (Victory Square - Aviatorilor - Charles de Gaulle Square). The highest rental levels in Bucharest can be found in the CBD area where companies undertake major investments for the comfort of their employees, allocating substantial budgets for landscaping and generous spaces for each workstation.
Mădălina Cojocaru, Partner, Office Agency, Cushman & Wakefield Echinox: "The way of occupying office spaces are currently transforming in the Western markets where co-working spaces are in full swing. Given that co-working operators are becoming more and more active in Bucharest, we believe that a number of local companies will analyze the option of diversifying their real estate portfolio by relocating some departments that need flexibility and access to an extended networking platform in these alternative locations. Their main advantages are linked by the flexibility of contracts and the inclusion of all services into a single charge, thus facilitating the communication and the exchange of experience between employees from diverse and interconnected areas. This stage is part of a constantly maturing and diversifying market, which will adapt to the demands and values of the new generations of employees."