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BRIGHT OUTLOOK FOR BUCHAREST’S OFFICE MARKET
According to CBRE in Romania, Bucharest’s modern office stock is now around 3.27 million sqm after the delivery of three new buildings with a combined (GLA) of 73,500 sqm. From the total new supply, the Center-West sub-market claimed the largest share with Sema Park II developed by River Development, together with Forte Partner’s newest office project Tandem and the first phase of @Expo developed by Atenor Group, the new buildings have an overall occupancy rate of over 70 percent at the end of Q1.
By the end of 2022, circa 66,000 sqm in another three office buildings will be added to modern stock with the second phase of two well-performing projects, respectively One Cotroceni developed by One United and AFI Tech Park developed by AFI Europe.
Another 94,000 sqm are forecasted to be added to the capital city’s modern office stock by the end of next year when 5 new office buildings will be delivered among which the second phase of U-Center Campus developed by Forte Partners, Equilibrium – Building B developed by Skanska, Muse Project developed by ACMS Primavera and the second phase of @Expo developed by Atenor Group
Office leasing activity in Bucharest during the first three months of 2022, reached around 60,400 sqm, which was 44 percent more compared with the first quarter of the previous year.
“The year-on-year growth of leasing transactions shows a continuation of the rebound. Large tenants want to expand and relocate, but the biggest issue we are facing is the limited new supply,” comments Tudor Ionescu, Head of A&T Services Office of CBRE Romania
Office properties remain the most interesting investment assets in the local market. The largest deal of the first quarter of 2022 represented 48 percent of the total investment volume and refers to the acquisition of the office building Record Park in Cluj-Napoca by the Belgians from AYA Properties from Speedwell for an estimated amount of €30 million.
“We are witnessing a continuous flow of deals in the market which gives good balance, and the pipeline for Q2 is set to confirm this stability, especially as investors look to hedge against the rise of inflation,” said Mihai Pătrulescu, Head of Investment Properties of CBRE Romania
S IMMO ACQUIRES EXPO BUSINESS PARK IN BUCHAREST
Among the tenants of the Class A office property with a main usable area of roughly 41,500 sqm are the Dutch banking and financial services company ING and Romania’s largest pharmaceutical group A&D Pharma.
The three-part office complex, which has excellent public transport connections to the city centre as well as to both airports, is located in the office district Center West, adjacent to the Bucharest exhibition grounds. The properties, completed recently in 2019, meet high sustainability standards and have received BREEAM Outstanding and WELL Health & Safety certifications.
“We were convinced not only by the Expo Business Park’s high rental occupancy and earning power but also by the sustainable quality of the building and the outstanding certifications,” comments Herwig Teufelsdorfer, CIO of S IMMO AG, on the purchase.
BEIN OFFICES POWERED BY BIZNESHUB TO OPEN ANOTHER OFFICE IN WARSAW
BeIN Offices, a rapidly growing operator in the flexible office space and coworking spaces sector, is joining the tenants of Central Point, an office building located in the very centre of Warsaw. BeIN Offices will occupy 1,900 sqm of space on the 8th and 9th floors of the building. The tenant was supported during the lease negotiations by Cushman & Wakefield. The landlord, Immobel Polska, was represented in the transaction JLL.
“Our experience in recent years clearly illustrates the changing trends in the office sector. The market for serviced offices and flexible office space fits perfectly with the changing needs of tenants in terms of demand for office space, the flexibility of contracts, a wide range of additional services as well as amenities and design,” says Olga Stanowska, Director of Operations at BeIN Offices powered by biznesHUB.
“Changes in the way we work as a result of the pandemic, including the growing importance of the hybrid model, have translated into increased tenant interest in flexible space,” comments Olga Szczęsna, Director at the Office Leasing Agency at JLL.
“Thanks to the experience of BeIN Offices operator, the excellent location and the high standard of the building, this will be one of the most attractive flexible office spaces in Warsaw,” comments the Tenant Representation Team led by Joanna Blumert, Cushman & Wakefield Polska.
FRISCO.PL TO MOVE INTO 7R CITY FLEX GDAŃSK II
Frisco.pl store, a big e-grocery market player in Poland, has become a tenant of 7R City Flex Gdańsk II. To shorten the supply chain to its maximum and ensure rapid delivery, Frisco.pl relies on last-mile logistics warehouses. The brand, which delivers its products to over 120,000 households, has leased over 3,500 sqm of certified warehouse and office space.
“We are very happy that after years of improving the service, we can finally offer online shopping to the residents of the Tri-City,” commented Grzegorz Bielecki, Director of Operations at Frisco.pl.
One-hour delivery and same-day delivery require a more extensive network of warehouses located within metropolitan areas. The investment was adjusted to Frisco.pl’s needs in terms of both food storage and logistic operations.
The building was also constructed according to 7R’s ecological standards, meaning that 7R City Flex Gdańsk II has a number of energy-efficient solutions and has received BREEAM certification. According to 7R’s calculations, using green solutions in a 20,000 sqm warehouse facility can reduce energy consumption by up to 50 percent.
“New consumer habits, developed over the last two years, have made it even more important for companies to focus on customer experience. Therefore, warehouses located in urban agglomerations, are becoming increasingly popular as they make it possible to increase the efficiency of last-mile deliveries,” commented Marzena Taube, Leasing Director at 7R.