Bucharest’s modern office stock increased by 2% q-o-q and stands at 2.2 million sq. m. In Q1 2015 two office buildings were delivered, having a total rentable area of 37,000 sq. m: City Offices – 27,000 sq. m and Auchan Tricodava – 10,000 sq. m.
For the rest of the year, new supply is projected to be of 130,000 sq. m. Among the office buildings due to be delivered in 2015 are Bucharest One and Green Court – B in Central North submarket, George Enescu OB in Central area, PC Business Center in North and Sema Office 3 and AFI Business Park IV&V in West.
Leasing activity in Q1 2015 was of 56,000 sq. m and compared with the same period last year is lower by 8%. Take-up represents 71%, with 40,000 sq. m transacted and is divided between expansions/ new operations – 58%, relocations within A & B class office space – 31% and relocations from old stock to modern office space – 11%. In total, new demand’s share in take-up was ~ 70%.
Another 16,000 sq. m were the subject of renegotiation and renewal transactions, half being concluded in Pipera South. The trend observed throughout 2014 continues, only office occupiers satisfied with their current location being inclined to renegotiate and renew their leasing terms.
Most of the take-up was recorded in Central North submarket – 61%, followed by Pipera South – 15% and CBD – 7%.