New office space demand covers 40 pct of office rentals in Bucharest in Jan-Sept

A report by real estate consultancy firm Jones Lang LaSalle (JLL) shows that demand for new office space during the first nine months of the year in Bucharest totaled about 81,000 square meters, nearly 40 percent of the total area leased by companies in the first nine months of the year. Considering that an employee is usually allotted 8-10 square meters of office, JLL estimates this means a total of 8,000 to 10,000 new jobs will be created.

Most of the new demand came from companies in the IT segment, which was the main employer in recent years in Romania, with over half the total, 42,200 square meters.

Professional services companies have rented 8,600 square meters of offices, over 10 percent of new demand in the capital in the first nine months.

New office space was also rented by companies in the BPO, FMGC, healthcare and pharmaceuticals, retail and media, covering a total of 16,500 square meters.

The surface of office space leased in the first nine months totaled over 211,000 square meters, up by over 7 percent compared to the 197,000 square meters in the same period last year. Demand this year was comprised of 81,000 square meters new request, 68,000 square meters relocations from other buildings and 62,500 square meters renewals.

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Dimitrie Pompei, with nearly 20,000 square meters and Floreasca-Barbu Vacarescu, with 18,500 square meters, attracted half of new office space demand.

Companies in IT dominated the market with a total leased area in January-September of over 110,000 square meters, followed by those in professional services, with 29,300 square meters and pharma sector and health, which leased 12,600 square meters of offices.

Companies in retail leased 11,800 square meters in total, FMCG companies almost 7,600 square meters, and the financial services requested 6,000 square meters.

“This year we expect the rental market for office space will reach 300,000 square meters, a level comparable to last year. Of the total of requests JLL receives from companies, we are still seeing a significant share of new demand in the total market. Bucharest has become and will continue to be the hub for many multinational companies especially in financial services, IT and BPO. Many of them have already established offices in the Romanian market, but the success they have here will determine their expansion and will attract other competitors,” said Marius Scuta, head of office department and tenant representation of JLL.

JLL is a financial and professional services firm that specializes in commercial real estate services and investment management. It currently hires 58,000 people across 230 corporate offices worldwide, working with clients in more than 80 countries.

Natalia Martian