Demand for new offices in Bucharest rose by 13% in 2022 compared to the previous year, with 332,922 sqm of spaces leased in the city during the past year, according to real estate consultancy Fortim Trusted Advisors.
Take-up transactions reached a total area of 214,911 sqm, compared to 187,896 sqm in 2021, while office renegotiation deals totaled 115,361 sqm.
The largest deal saw Booking lease 9,000 sqm in the first phase of U Center, while BAT pre-leased 10,500 sqm in One Cotroceni Park.
The IT&C generated the biggest demand in the office market, with 125,135 sqm being leased through new transactions or renegotiations.
Costin Nistor, Managing Director at Fortim Trusted Advisors, said that large volume of office space had contracts for a period of 4-5 years, which expire in 2023-2024.
“Companies will have a choice between extending contracts for current spaces under new conditions or moving to other office buildings on more advantageous terms. As there are fewer deliveries of new buildings, we expect either an increase in the share of contract renewals or an increase in the number of contracts in office buildings with flexible owners, which will consider the new rental conditions in the market,” said Nistor.
“In 2024-2025, however, we expect pressure on the market due to very low deliveries. In 2025, for example, office buildings that will total only 62,000 sqm will be put into use, if we estimate based on the current building permits, which is very little, at the level of 2012,” he added.
At present, Bucharest’s office stock totals 4 million sqm, with new deliveries reaching 131,006 sqm during 2022.
