Demand for offices shrinks, rents drop by 10 to 25 percent, Esop finds

Newsroom 22/06/2009 | 17:22

“The companies' relocation budgets have shrunk proportionally with their profits during this period. For small and medium enterprises, but also for medium corporations, budgets have shrunk by around 30 percent. For 100 to 150 sqm most budgets don't exceed EUR 1,800 to EUR 2,000,” said Esop representatives. Larger companies are looking for B and C office buildings and villas, of 200 to 300 sqm, with average budgets between EUR 8 and EUR 12 per sqm. For larger corporates, B and C buildings are preferred, with asking areas between 800 and 1,200 sqm and average budgets between EUR 10 and EUR 12 per sqm, according to Esop's study.
Owners of empty buildings saw a slight movement on the market in the first part of the year, but it soon turned out that those who were asking for new offices were testing the market to find better leases and were ultimately sticking with their old landlords.
Besides the pre-leasing difficulties, 2009 also came with a surplus of offices on all segments. Another new trend on the market was sub-letting, as many companies had pre-leased more space than needed, hoping to expand next year, but have delayed expansion in the meantime.
Corina Saceanu

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