60 pct of office space to be delivered this year still doesn't have tenants

Real estate developers face the grim reality that 60 percent of the office buildings that they will deliver this year don’t have any tenants. Depending on the project, the level of free space ranges from 0 percent to 100 percent according to data centralized by Mediafax.

Developers will finish seven important office buildings in Bucuresti and Cluj-Napoca with a total area of 136,000 square meters, out of which only 53,000 sq m are currently under contract.

City Offices will be the first project to be finalized, according to owner Globalworth Asset Managers. The building is actually the former City Mall in Bucharest and it offers an area of 25,000 square meters and a parking lot of 1,200 spots.

According to available data, so far there isn’t a single tenant for the City Offices project.

Belgian developer Atenor is about deliver the first building in the Hermes Business Campus, near the Pipera station: 18,000 square meters and a EUR 25 million investment. Atenor’s managed to find clients for 20 percent of the available space.

AFI Europe is in a much better position, due to deliver a second building in the AFI Park complex with a 12,500 square meter surface and a client with a fresh contract, namely Electronic Arts.

Czech developer S Group invested EUR 55 million in the Green Gate building next to Piata Chirigiu in Bucharest and has managed to occupy 70 percent of it. The project will be finished in May.

In April, Ovidiu Sandor will finish a new office building in Cluj Napoca, worth EUR 25 million in investments. The building currently is 40% rented, with an estimated 70-75% level of occupation by the time it will be finished.

The office buildings about to be finished this year also include Skanska Green Court in Bucharest (october deadline, 19,500 square meters).