Total office leasing activity in Bucharest grows to 250,000 sqm in 2013, says Colliers

A total of 250,000 sqm of office space were leased in 2013, up 20 pct compared to the 2010-2013 average, according to a Colliers International Romania report.

The total activity on the Bucharest office market stood at 195,000 sqm on average in the last four years, according to the study. Net take-up, consisting of all the leasing transactions reducing the vacancy rate (expansions, relocations from non-competitive stock and new entries), had a share of 54 percent in the total leasing between 40 percent (2013) and 65 percent (2010) during the analyzed period.

Expansions and new entries alone, the main sources of the “healthy demand”, added between 40,000 sqm and 70,000 sqm of GLA to the total transactional volumes yearly. This is translated into an average yearly share of 30 percent in the total demand.

“As the question regarding the difference between a healthy demand on the office market and the total activity pops out very often in discussions with our clients, it is essential to underline the positive evolution of new entries and expansions on the office market. Provided that the economic environment will strengthen in the following years, we expect an increase in the total activity to be generated by companies that either expand their occupied spaces or start their operations in Bucharest”, said Oana Sirbu, associate in the office agency team of Colliers International.

 Unlike mature markets – which are characterized by a small proportion of expansions and new entries in the total leasing activity and a greater share of relocations and renegotiations – in the case of emerging markets such as Bucharest a higher share of new entries and expansions is considered to be healthy, given the fact that this type of lease transactions are responsible for the absorption of current stock and leads the way for future developments, according to Colliers. The healthy demand acts as the barometer of the current state of the local economy, its ascending trend being directly correlated to new companies entering the local market and increased activity of companies that decide to expand their current office premises, according to the same source.

Read more about

Bucharest’s office market saw a record number of leasing deals in 2023, but deliveries were at their lowest since 2015

read more

“Bucharest’s office market is finally settling into young adulthood, after a few years of struggling to get back on track. We have witnessed it rise and fall much like a teenager would, and now we are watching it slowly mature, towards stability and sustainable growth. This however, does not mean that we can no longer be surprised by the weak demands of a market which is constantly growing”, said Daniela Popescu, head of research within Colliers International Romania.

IT&C drives demand

The IT & C segment was the main driver of the healthy demand recorded on the office market (42 percent of the total expansions). The companies active in this sector targeted areas such as Dimitrie Pompeiu, Victoriei and Barbu Vacarescu – Floreasca.

Another 14 percent of the total expansions on the market came from the financial sector. One of the fastest growing sectors before the financial crisis, this segment saw an increase in the occupied spaces in 2010 but it remained subdued in the last three years.

The Energy & Industrial sector was continuously growing in the last four years, reaching 8,000 sqm in expansion transactions in 2013.

Dimitrie Pompeiu, Victoriei and Floreasca – Barbu Vacarescu were the top 3 most targeted locations in the last four years by companies that either extended their occupied spaces or set their first office on the local market.

Simona Bazavan