The office leasing activity in Bucharest was up 12% in the first half of 2023 compared to the same period of 2022, with volumes reaching 169,000 sqm, according to a Crosspoint Real Estate report.
With a relatively equal proportion between renewals, renegotiations, subleases and new lettings (48% versus 52%), demand for office space in the first semester was concentrated in the northern part of the city. The average office lease deal stood at 1,400 sqm.
"Although the market appears to have adjusted to the slower pace of demand growth in recent years, with limited deliveries for the next 18 months, the vacancy rate remains high, at over 12%. If we also consider the spaces available for subletting or the spaces that will become vacant after the downsizing of some major tenants, if the pace of demand remains steady in the coming period, the vacancy rate may return to pre-pandemic levels only after the second half of next year. However, this context creates opportunities for smaller tenants, who can access ready-to-let space of superior standards in modern buildings located in established office hubs," says Daniel Mitu, Senior Account Manager Office Agency at Crosspoint Real Estate.
The main demand drivers were the IT&C companies with a share of 37% of the closed deals. Energy and industrial companies had a quarter of the total rental volume.
Prime rents for offices were flat at €19.5-20 per sqm, while new deliveries totaled 102,450 sqm. At the end of H1 2023, Bucharest’s office stock reached 3.85 million sqm.
