|  15.11.2012

Over 44,000 sqm of office spaces, finalized in first nine months of 2012, in Bucharest

The new area of office spaces finalized in the first nine months of 2012 in Bucharest stands at some 44,000 sqm, representing a decrease by only 14.4 percent from the same period of 2011, according to the latest market report of Jones Lang LaSalle.


In Q3 2012, three new office projects totaling approximately 20,000 sqm were opened. The largest contribution to this area had AFI Business Park (13,700 sqm), followed by Aviatorilor Plaza (3,300 sqm) and Monolit Square (2,100 sqm) in Bucharest. The total takeover of office spaces in Q3 2012 was around 40,000 sqm, of which 8,900 sqm were the object of renegotiation contracts. The lease contracts for the finalized spaces totaled some 17,000 sqm, while pre-lease contracts were signed for 9,945 sqm. The lease activity in the first nine months (except for re-negotiation / re-lease contracts) stands at some 140,000 sqm, representing a decrease by 21 percent compared with the same period of 2011.


Surprisingly, large projects such as Hermes Business Campus and Green Gate resumed construction activity and have increased the office supply in 2013-2014. The geographical analysis of office space takeover (except for re-negotiation / re-lease contracts) shows a focus of demand on the western part of the city, which drew 39.7 percent of the surface leased in Q3 2012, followed by the centre-north area (including the central business area), Pipera City and Floreasca Barbu Vacarescu corridor by 13.3 percent, 12.3 percent and 8.2 percent respectively, of the office area leased in Q3. In the western part of city, AFI Business Park and West Gate drew most of the demand. The contractual rents for office spaces recorded a slight decrease to the level of 8.5 euro /sqm/ month. Total vacancy rate (Class A&B) is estimated at 17.16 percent. As a characteristic feature of the local market, the vacancy rate differs significantly in various business areas.

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