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Insights | DTZ PROPERTY TIMES BUCHAREST Q1 2014 OFFICE MARKET
DTZ PROPERTY TIMES BUCHAREST Q1 2014 OFFICE MARKET
- In Q1 2014 two office buildings were delivered adding to the total office stock 23,400 sq m. At the end of the quarter, Bucharest’s modern office stock reached 2,069,000 sq m. For the reminder of the year another 102,000 sq m are expected to be delivered in office projects like Green Gate, AFI Business Park II & III, City Offices, Green Court or Ethos House.
- Total take-up figure this quarter is of 48,500 sq m, the largest share being represented by pre-lease transactions – 51%. This is the strongest take-up figure registered in the last seven quarters. Another 12,000 sq m were subject to renewal and renegotiation transactions.
- The vacancy rate remained flat q-o-q and is situated around 16.7%. In total there are 345,000 sq m of vacant office space class A and B. Approximately 38% is located in Pipera sub-market. Central Business District and West submarkets continue to register the lowest vacancy rates on Bucharest market.
- There were no changes regarding the rental levels q-o-q. Prime headline rent remained situated around € 18 / sq m/month and will remain so throughout the first half of 2014. Starting H2 2014 a slight increase might occur considering that the vacancy rate in CBD is situated around 8% and no major projects are expected to be delivered in this particular sub-market.
