About 50 percent of the TLA concluded in Q3 2017 was represented by new demand, a record high for the local office market, CBRE data reveals. This is also a record for the past years, this because new demand is about 20-25 percent on quarterly analysis.
The total leasing activity in the July-September period amounted to 75,000 sqm, with the consequent total volume of transactions registered from the beginning of 2017 reaching 251,000 sqm. Throughout the first nine months, the highest demand levels were recorded in North and Pipera sub-markets, followed by the Central and West sub-markets.
In addition, the take-up (total leasing activity excluding renewal/ renegotiation) represented 84 percent of TLA in Q3 2017 and 69 percent in the first nine months of the year. In the first nine months, about 28 percent of the transactions were concluded in Pipera area, followed by North, with 25 percent of the transactions, while in CBD was 16 percent of the total TLA.
IT&C sector accounted for 78 percent of the TLA in the office spaces in the third quarter, followed by professional services, with 10 percent.
Over 20 transactions with more than 3,000 sqm in the first 9 months: CBRE, by far the market leader
A number of 23 transactions with more than 3,000 sqm were recorded during the first nine months, 70 percent of this volume being transacted by companies from IT&C sector. CBRE was by far the market leader in the leasing process of office spaces.
By the end of this year, 140,000 sqm office buildings are expected to be finalized, 80 percent of the total stock is already developed. More than 85,000 sqm of the total finalized space is already pre-leased.
In the first nine months, CBRE has represented more than 70,000 sqm, which accounts for 30 percent of the total demand. In total, CBRE has intermediated a number of 30 transactions, more than half being surfaces with more than 1,000 sqm. The average surface leased by CBRE was over 2,500 sqm.
At the end of Q3 2017, Bucharest’s modern office stock reached 2.76 million sqm. During the third quarter of 2017, only one project was completed: The Bridge, developed by Forte Partners. The project is located in the West sub-market and has a total leasable area of 36,000 sqm and is almost leased by BCR and IBM.
The overall vacancy rate in Bucharest stands at 9.9 percent, registering a drop of 1.1 pps q-o-q and 2.4 pps, y-o-y.
Vacancy declined across all sub-markets except the Periphery area, which is without access to public transportation, especially metro. Grade A properties have the lowest average vacancy rate (6.3 percent).
The prime rent remains unchanged and is estimated at €18.5/sqm/month. In the next two years, the level of the prime rent is unlikely to change further due to the limited new supply of prime office projects in the Central Business District (CBD).
