The vacancy rate in Bucharest’s office market remained flat at 16.5% in the first quarter of 2022, similar to last year, although there is a growing gap between Class A projects and older buildings in areas with lower demand, according to real estate consultancy Colliers.
The agency’s consultants suggest that the offering for spaces in good buildings is starting to get smaller and we are already starting to see the first material upside pressures on prime headline rents in many years.
“Looking at demand-side figures, we see that IT&C continues to be the major focus of companies leasing office spaces, accounting for over 40% of total demand, though the share in new demand is bigger – more than half. Various professional service companies and those in consumer-led sectors were also present in the leasing picture, rounding out a diversified quarter in terms of activity,” said Victor Cosconel, Head of Leasing | Office & Industrial Agencies at Colliers.
Around 130,000 sqm of new modern offices could be delivered this year, with a total of roughly 360,000 sqm for the 2022-2024 period, according to the agency. The office market expanded by around 70,000 sqm in Q1, with the total stock coming close to 3.3 million sqm.
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