Bucharest office stock reaches 1.55 million sqm in Q1

The Bucharest office space stock has reached 1.55 million sqm at the end of the first quarter of this year, according to The Advisers Knight Frank. In Q1 of 2011 32,000 sqm of new office space were delivered in Swan Office Park (29,000 GLA) in the northern part of Bucharest and in Frumoasa Center (3,100 sqm GLA) in Victoriei Square. The demand for office space continued to be focused on the central and semi-central areas. Compared to the similar period of last year when 65,000 sqm were transactioned in Bucharest, in the first quarter of this year around 50,000 sqm were rented, a 23 percent drop. The drop is due not to a slowdown in demand but to lengthier negotiations, taking an average of six months to the closing of the deal.

The most active tenants come from the pharmaceutical and medical services sector, followed by the professional services sector and IT&C.

This year is expected to see a drop of approximately 40 percent in new office deliveries, compared to 2010 when 265,000 sqm were delivered, the study shows. Around 1500,000 sqm are announced for delivery this year. The first double skin façade building with a heliport – Crystal Tower – will be delivered this year as well. The building is located in Victoriei square and will have a rentable space of 16,000 sqm. Other projects that are expected to be delivered this tear are North Point and Platinum Business & Convention Center, both located in the Northern part of the capital. The demand is estimated to remain at a similar level to that of 2010, when approximately 225,000 sqm were transacted.