European Outlook 2026
Bucharest, January 2026: The office operational costs in Bucharest have increased by approximately 17% over 2025, according to an analysis of the Cushman & Wakefield Echinox real estate consultancy company. The upward trend was driven by a combination of macroeconomic and operational factors, including high inflation, increased personnel costs, and changes in fiscal policy.
Operational costs are expenses incurred by tenants which are added to the rent and together compose the occupancy costs. The costs in question include property tax, technical maintenance, insurance, cleaning services, physical and fire security, internet services and property management.
Property taxes, which can represent up to 50% of the total operating expenses, account for the largest share of the operational costs.
Office operational costs in Bucharest increased by about 17% in 2025, according to an analysis by Cushman & Wakefield Echinox. The rise is mainly driven by inflation, higher personnel expenses, and recent fiscal changes.
Operational costs—added to rent and forming total occupancy costs—cover services such as maintenance, cleaning, security, internet, insurance, and property management.
Property taxes remain the biggest cost component, representing up to 50% of total operational expenses.
Maria – Raluca Mihai, Director Property Management, Cushman & Wakefield Echinox: “Operational costs have remained the main challenge in office building management. In 2025, the rise in service and material prices, together with the increasing number of employees returning to office, put pressure on budgets. A proactive approach from property management teams continues to be essential for maintaining the competitiveness of buildings.
When managing costs, it is crucial to have tools that can process financial information quickly and accurately, so that optimisation decisions can be made without delay. The global economy is currently affected by unpredictable factors, and digitalisation remains the solution for organisations to keep pace and adapt efficiently.”
High inflation has been one of the main factors behind significant price increases across almost all categories of operational costs, from utilities to materials and specialised services.
Additionally, the 9.46% increase in the minimum wage has had a direct impact on personnel costs for service providers, particularly in cleaning and security areas. At the same time, maintenance and repair costs for HVAC systems have risen, building insurance premiums have become more expensive, and the increased presence in the office—exceeding 50%, and in some cases even reaching 100%—has intensified the consumption of materials and the need for operational staff.
The VAT increase to 21% and the possible tax hikes anticipated for 2026 have resulted in additional pressure on operational costs, impacting both tenants and property owners.
In this context, optimal management of operating costs is seen as the main challenge in asset management by the leading developers in Romania, according to the fourth edition of the Real Estate Investors Sentiment Barometer conducted by the Cushman & Wakefield Echinox, the real estate consultancy company.
In this edition, we surveyed investors regarding their perception of the importance of property asset management services across their portfolios. 51% of investors (vs. 39% in 2024) view optimal management of operating costs as the main challenge faced in managing their assets. For 28%, navigating the complexity of legislative regulations is one of the challenges.
When the respondents were questioned about the trends which will have the greatest influence on commercial property management services, they indicate tenant experience & behaviour as the main factor (48%), a consistent increase compared with 2024 (36%), followed by Technology and Digitalization (30%).
In a volatile economic environment, the role of the Property Manager becomes essential in keeping expenses under control and ensuring efficient operations for an office building.
A healthy market practice is to organise regular tenders for services, roughly every 1.5 years, to secure competitive pricing. Selecting a single provider capable of delivering integrated services (security, cleaning, maintenance) and signing unified contracts for multiple properties, which allows the negotiation of volume discounts, are effective measures to mitigate cost increases.
Similarly, implementing energy‑efficiency measures, such as replacing all lighting with LED systems, installing motion sensors, optimising HVAC schedules by zone and occupancy patterns, introducing or upgrading BMS systems, and assessing and improving thermal insulation, can have a positive impact on operating budgets.
Moreover, a rigorous maintenance plan reduces the risk of costly repairs and limits the effect of rising prices for imported parts, while reconciliations should be presented in clear cost categories and supported by appropriate documentation, enabling tenants to track spending allocations in detail.
Providing explanations for each cost increase — whether related to inflation, legislative changes, or additional consumption — also contributes to maintaining a balanced and transparent relationship.
The Cushman & Wakefield Echinox Asset Services team manages 13 real estate projects with a total area of over 400,000 sq. m and a market value nearing €400 million nationwide. These projects serve 123 tenants from various industries. In Bucharest, the company oversees several iconic office buildings such as Floreasca Park, Tiriac Tower, with operational budgets exceeding €7.5 million.
