Real Estate Investors Barometer 2024
Bucharest, October 2018: Companies in Bucharest that operate in modern office buildings have monthly occupancy costs ranging between 175 and 500 euros per employee, according to an analysis of Cushman & Wakefield Echinox real estate consultancy firm.
The analysis takes into account rental costs, service charges, operational costs (water, electricity, internet, consumables, cleaning, reception), as well as fit-out and furnishing costs, amortized over a five year period – the average duration of a rental contract in the Bucharest office market.
The result is also influenced by the density of office space, with most companies allocating between 8 and 12 square meters per employee, including the share of common rented offices, such as conference rooms, kitchens or reception areas.
The most significant costs are those with the net effective rent, which may vary between 8 – 17.5 euro/ sq. m/ month, followed by the fit-out and furnishing costs, which also vary between 300 and 750 euro/ sq. m, corresponding to a monthly amortization cost between 5 and 12.5 euro/ sq. m.
Taking these parameters into account, the occupancy costs per employee range from 175-180 euros/ month in areas such as South, East or Pipera North and may even exceed the threshold of 500 euros/ month for employees working in the CBD (Victory Square – Aviatorilor – Charles de Gaulle Square). The highest rental levels in Bucharest can be found in the CBD area where companies undertake major investments for the comfort of their employees, allocating substantial budgets for landscaping and generous spaces for each workstation.
Mădălina Cojocaru, Partner, Office Agency, Cushman & Wakefield Echinox: “The way of occupying office spaces is currently transforming in the Western markets where co-working spaces are in full swing. Given that co-working operators are becoming more and more active in Bucharest, we believe that a number of local companies will analyze the option of diversifying their real estate portfolio by relocating some departments that need flexibility and access to an extended networking platform in these alternative locations. Their main advantages are linked by the flexibility of contracts and the inclusion of all services into a single charge, thus facilitating the communication and the exchange of experience between employees from diverse and interconnected areas. This stage is part of a constantly maturing and diversifying market, which will adapt to the demands and values of the new generations of employees.”
Cushman & Wakefield Echinox is one of the largest real estate consultancy firms in Romania, active in all the real estate market segments. The company’s office agency has rented over 100,000 sq. m of offices duing the last 18 months in Bucharest and the country.
Map of office occupancy costs in Bucharest (€/ employee/ month)
Source: Cushman & Wakefield Echinox
About Cushman & Wakefield Echinox is the exclusive affiliate of Cushman & Wakefield in Romania, owned and operated independently. With a team of over 50 professionals and collaborators, offers a full range of services to investors, developers, owners and tenants across all segments of the real estate market, including the residential market. For more information, visit our website www.cwechinox.com
Cushman & Wakefield is a leading global real estate services firm with 45,000 employees in more than 70 countries helping occupiers and investors optimize the value of their real estate. Cushman & Wakefield is among the largest commercial real estate services firms with revenue of $6 billion across core services of agency leasing, asset services, capital markets, facility services (C&W Services), global occupier services, investment & asset management (DTZ Investors), project & development services, tenant representation, and valuation & advisory. To learn more, visit www.cwechinox.com.
