People of Cushman & Wakefield Echinox
Starting 2015 modern office stock in Bucharest increased by 2.5%. At the end of June existing class A and B office space surpassed 2.21 million sq. m. Three office buildings were delivered, having a total GLA of 54,000 sq. m: City Offices, Auchan Tricodava and Green Court – building B.
Currently under construction with delivery date by year’s end are 100,000 sq. m of modern office space. Approx. 50% is concentrated in one project – Bucharest One, located in Central North submarket.
In Bucharest office leasing activity recorded throughout H1 2015 is of 135,000 sq. m, no changes being registered y-o-y. Net take-up represents more than 80%, with 112,000 sq. m transacted and is divided between relocations within A and B class – 44% and new demand – 56%. Compared to the same period last year, net take-up is higher by 3.5% and the ratio between relocations within modern office stock and new demand has reversed. Overall, new demand (relocations from old stock, expansions and new operations) has increased y-oy by ~ 35%.
Pre-lease activity has improved by 50% compared to H1 2014. Approximately 59,000 sq. m were pre-leased in the first six months of 2015, representing 52% of net take-up. Moreover, pre-lease transactions were the largest deals in terms of area (e.g. Genpact – 22,000 sq. m, Oracle – 20,000 sq. m, Carrefour – ~7,000 sq. m, NNDKP – ~6,000 sq. m).
Another 23,000 sq. m were the subject of renegotiation and renewal transactions, 40% being concluded in Pipera.
