Total office space in Bucharest approaches 3 million sqm

The second quarter of 2019 reconfirmed the increased interest for the office market in Romania. Over 115,000 square meters of office space were leased over this period at the national level, a value similar with that registered in the second quarter of 2018, according to Business-Review.eu.

In total, 239,500 sqm of office space were leased nationwide in the first half of 2019, up 17.6 percent from the first six months of 2018, when approximately 203,600 square meters were leased.

Transactions concluded in the first half of this year represent about 60 percent of the total volume registered last year, nearly 400,000 square meters. If the current pace is maintained in the last two quarters of the year, then the overall level of 2018 could be exceeded by at least 20 percent.
“The office market continues to perform well in 2019, showing that this real estate segment has reached a certain maturity state. The presence of professional developers, with rich experience and strategies in line with the new tenants’ requirements, has helped the market to mature. This translates into a balance between supply and demand and slightly fluctuations in vacancy rates and average rents,” said Marius Scuta, Head of Office Department and Tenant Representation JLL Romania.

To be noticed that net office space demand increased by 43 percent in the second quarter compared to the first quarter of 2019 to around 60,000 square meters. Net demand accounted for 52 percent of the volume of rental transactions recorded in the second quarter of this year. For the first half of the year, net demand amounted almost 43 percent of the total traded.

Most of the tenants who rented office space in the second quarter are companies in the IT, medical and pharmaceutical, and manufacturing sectors.

 

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