The office subleasing market in Bucharest is gaining ground as the development pipeline of new projects is falling, while tenant companies are looking for better locations to reduce commute times for employees, concluded speakers of the hybrid work panel of SEE Property Forum 2023, held in Bucharest.
Bogdan-Adrian Nicoară, CEO & Co-Founder, Bright Spaces, who chaired the panel mentioned ESG, hybrid work and office layout changes as some of the trends recorded in the market at present.
Through relocations, tenants right now see how they can improve the lives of their employees by lowering transit times, said Andrei Boca, Senior Leasing Manager, Globalworth. He added that the headcount of companies increased during the pandemic and right now, when more people are coming to the office, they need space.
Andreea Ciobanu, Chief Marketing Officer, Hagag Development Europe, said the developer has brought back to life decades-old buildings. “We have attracted a unique mix of tenants for these office buildings.” She added the office is transforming into a luxury hotel as we are talking the hospitality segment into the office market.
In the lightning business, renovation is the new topic, said Peter Duine, Global Segment Manager - Office Market at Signify: The EU accepts the fact that in 2050, 85% of the buildings already exist today and investments are needed so they will not be stranded assets.
Maria Jianu, Commercial Real Estate Manager, Genesis Property, explained that right now there is a huge opportunity for tenants to future-proof their business. She added that in YUNITY Park, the developer has a new approach for the office. People can come to connect, develop their network and socialise, which enhances the quality of their lives.
Emma Toma, Head of Office Leasing Division, AFI Europe Romania, explained that there is no question about the transition to hybrid working. The IT sector had a clear trend for working from home, with most of the employees not coming back to the office. In this case, there are space reductions of 20 to 50%. For other types of companies, they didn’t reduce the space but expanded. Toma said she started to feel the effect of bringing into the market fully finished and furnished spaces offered in sublease at lower rents. “This is happening in parallel with the lack of new spaces.”
