The local office market has undergone major transformations between 2008 and 2013 going from a “landlords’ market in 2008” to a “tenants’ market” over the next years, according to CBRE Romania. The commercial real estate services firm forecasts that 2014 – 2016 will bring a more balanced position between landlords and tenants, given the slow increase of demand and a volume of new stock under the average of the last 10 years.
In 2013 the total leasing activity was of over 300,000 sq m, including new lease contracts, relocations and renewals and lease prolongations. This was the highest leasing volume registered over the last 6 years.
“There continue to be some question marks over the recovery of the real-estate sector in Romania. Among them we can mention: the future of distressed assets, the chance of survival or transformation of secondary and tertiary projects, the lack of global institutional funds. The year 2014 will bring a slight increase of demand for all real-estate segments, but only in a context of macro-economic and political stability,” according to Razvan Iorgu, managing director CBRE Romania.
Between 2008 and 2013, the office department within CBRE Romania brokered leases for more than 300,000 sq m with a total contract value of EUR 275 million. This represents a 20 percent market share from the total agents’ office market in the analyzed period of 6 years, according to company data.