The demand for office development or refurbishment projects remains high as more companies are looking for quality workspaces, according to CBRE data.
Companies are looking for qualitative upgrades of office projects, despite the slowing down of deliveries, also impacted by the evolution of hybrid working. While in Europe 60% of companies have downsized their offices, in the CEE region, including Romania, the volume was at 42%, according to CBRE’s 2023 European Occupier Survey.
“As the importance of sustainability credentials for occupiers and landlords grows, this will lead to a larger split in rents and values across different categories of office stock. Hybrid work and office utilization will remain in focus. Companies will work to find an optimal balance between office operations and the space they need for each employee,” stated Tudor Ionescu, Head of A&T Services | Office at CBRE Romania.
Market data shows that the registered vacancy value in Bucharest is 15,1%, which is 1 percentage point higher compared with the vacancy from the end of Q4 2022, and also the highest since 2013. At the same time, take-up of office space is expected to be lower in 2023 than it was in 2022.
In Bucharest, the vacancy rate is expected to remain relatively stable also because of the delays caused in office projects by increased construction costs, labor shortages, supply chain issues and the slow permitting process.
One of the findings of CBRE’s research in CEE shows that almost half of the companies surveyed are relocating into better quality space for at least some of their functions, and a further 23% are exploring the possibilities for doing so.
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