With six new office buildings slated for delivery this year, the leasable stock will grow by 135,700 sqm, which is the lowest level since 2017, according to real estate consultancy CBRE.
Going into 2023, office deliveries are set to expand by 247,300 sqm, which would be one of the best results from the past 10 years. Already Bucharest is the biggest office market in Romania with a stock that will exceed 3.3 million sqm by the end of 2022.
Last year, total leasing activity amounted to 280,500 sqm, up 16% compared to 2020. Take-up (total transactions excluding renewal/renegotiation) represented 58% of the total leasing activity and was 15% higher than in 2020.
“Companies in search of new modern spaces or those who will need to renew their lease contracts could find themselves in a very uncomfortable position as Landlords will have a very solid negotiating position. Instead, now we are in an optimal moment to start a decision-making process: increased vacancy, available new supply and an ongoing organizational transformation trend generated by the pandemic disruption.” explains Vlad Damian, Head of A&T Services Office | Investor Leasing at CBRE Romania.
Tech companies have generated 36% of office leases last year and 46% of renewal/renegotiation deals. Moreover, CBRE data shows that 95% of projects under development are in the process of green certification, while only 70% of the modern office stock across the country is currently green certified.
Looking ahead, we might see more consolidated strategies that balance employee’s safety and hybrid work options with office disruption proof planning, according to Tudor Ionescu, Head of A&T Services Office at CBRE Romania.
