As the pandemic-related restrictions have been lifted, large occupiers have returned to the office, most of them in a hybrid setup, while the office lease periods have fallen from 5 to 3 years, according to an analysis of real estate consultancy Crosspoint Real Estate.
In the first quarter, total leasing volumes have amounted to nearly 65,000 sqm, similar to the same period of 2021.
“As we all expected, the office market will have a different course from now on, and the most important changescompared to the pre-pandemic period are hybrid work and the adaptation of multinational companies to this new reality by reducing the office spaces they have occupied before, together with a shortening of the lease terms, but also the fact that the variation between demand for office space and transactions has increased by 30%. As for the building owners, they will conclude their previously established plans, by focusing on their existing projects and ongoing developments”, says Simona Urse, Associate Director, Office Agency of Crosspoint Real Estate.
The agency’s consultants add that some companies are now willing to give up their currently occupied office space, even if it's under a running lease contract, in order to find a more suitable space for their employees. Moreover, rents for offices have a growth outlook of around 5% due to the sharp increase of the inflation.
"Profile studies show that about 45% of employees have already returned to the office, and the percentage increases from month to month, but we are certainly talking about a gradual return. It is true that about 60% of employees prefer the hybrid way of working, and the reasons are easy to understand: independence, flexibility of the work schedule, reducing the time spent in traffic. But, on the other hand, the need for a sense of belonging to a team, socialization and teamwork is very high, all of which are considerably impaired in the absence of physical contact with teammates", added Florina Grosu, Associate, Office Agency at Crosspoint Real Estate.
