While 116,000 sqm of office spaces were leased in Bucharest during Q4 2023, the overall transactional volume climbed to 463,000 sqm during the whole year, marking an all time take-up record, according to a Cushman & Wakefield Echinox report.
The volume soared 43% year-on-year and it was 19% percent higher compared to the previous record set in 2019.
"While analyzing the office leasing market in the past 3 years, we noticed that more than 1 million sqm of such spaces were transacted in Bucharest, representing approximately 33% of the total stock. This volume was practically recorded in a period characterized by new market fundamentals, where companies configured their strategies concerning their office space needs. This led to a downsizing of occupied areas for some tenants, but also to keeping or even expanding the leased spaces in the case of most occupants. We have also seen that close attention is being paid to the overall quality of office spaces, making the buildings located centrally and ultra-centrally, with access to public transportation and those that meet the ESG standards, more attractive to tenants and having the highest asking rents on the market," said Mădălina Cojocaru, Partner Office Agency Cushman & Wakefield Echinox.
The report further shows the net take-up, excluding renegotiations and renewals of existing contracts, had a share of only 46% in the total leased volume in Q4 and 44% across 2023. As a result, companies leased new offices for at least 20,000 extra employees, primarily working in the IT&C, manufacturing, financial, retail and medical sectors.
Bucharest’s total office stock hovers around 3.4 million sqm, while the development pipeline amounts to 42,500 sqm.
