The Center - West area (Politehnica, Orhideea, Cotroceni) has become the largest office hub in Bucharest, overtaking the Floreasca – Barbu Văcărescu submarket in Q1 2023, according to research by Cushman & Wakefield Echinox. This area is set to maintain its leading position in the medium term, considering the current development pipeline in the city.
The office stock in the city climbed to 3.35 million sqm following the completion of the second building of the One Cotroceni Park mixed – use project spanning 34,500 sqm in the Center-West part of Bucharest and the delivery of The Muse building in the Expoziției area with a leasable area of 7,500 sqm.
The Center - West area, where almost 300,000 sqm of new spaces were delivered during the last 3 years, reached a stock of 614,000 sqm, compared with 589,600 sqm in Floreasca - Barbu Văcărescu, where the new supply amounted to 132,000 sqm since 2019.
Dimitrie Pompeiu (440,700 sqm), Center (412,500 sqm) and CBD (357,300 sqm) are the other top five office submarkets in Bucharest.
“The pipeline remains limited and therefore the short-term demand will increase the absorption of available spaces, especially those located in easily accessible areas, but also those which are developed according to sustainability standards and certifications,” said Mădălina Cojocaru, Head of Office Agency Cushman & Wakefield Echinox.
Across the city, the office vacancy rate decreased to 14.8% in Q1, as a net absorption of almost 40,000 sqm was registered in the first three months.
Further rental growth was recorded in Q1 2023, with the prime headline rent in the CBD area reaching €21.00/sqm/month, a level which reflects an y-o-y increase of 13.5%, while other submarkets should also see such increases especially when it comes to prime assets.
Furthermore, office projects totaling 139,400 sqm are currently under construction in Bucharest, while other projects cumulating an area of around 300,000 sqm are under different planning stages. Among the key office projects slated for delivery by 2024 there are U-Center II, @EXPO II or ARC.
