Bucharest total office space take-up in Q1 2017 around 100,000 sq m

Q1 2017 saw class A & B take-up reach approximately 97,300 sq m, there were 9,550 sq m delivered in two projects in CBD (Central Business District), and the average transaction size increased from approximately 1,800 sq m in Q1 2016, to approximately 2,400 sq m in Q1 2017.

Over 55 percent of Q1 total take-up were renewals/renegotiations mainly in the IT&C and automotive industries. The biggest transaction was the 20,000 sq m renewal/renegotiation in Pipera and the upcoming two were the 10,300 sq m on Calea Floreasca/Barbu Vacarescu, and the 10.000 sq m in Presei Libere Square. Calea Floreasca/Barbu Văcărescu was demand leader with 30 percent of the total take-up of Q1.

”The market is continuing its’ growth trend after the record year of 2016, even if we won’t have that many deliveries. It is interesting to follow what will happen in the center, CBD and Pipera, where, so far, we saw the biggest transaction of this year”, says Horațiu Florescu, Chairman & CEO Knight Frank Romania.

The two projects delivered so far in 2017– Aviatorilor 8A and Dorobanților 33 – represents only 5 percent of the office space we expect to be delivered until the end of the year, accounting around 200,000 sq m.

The Center-West will be the main supply generator, with over 50 percent of class A office space planned for delivery, followed by Dimitrie Pompeiu with approximately 30 percent, but we see an increasing activity also in the Center and the CBD. The Landmark, which is the biggest project of this area, is of great interest and Knight Frank had already three transactions this year and is estimating to be fully leased by the end of this summer.

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The office division of Knight Frank Romania had transactions of approximately 31,000 sq m in the first quarter of this year, having most of the new demands of the market.