Bucharest’s office market may record double digit vacancy rates this year

Bucharest’s office market might reach double digit vacancy rate on some submarkets this year, while the new offer will be around 350,000 sqm for 2019, and around 60 percent of has already been pre-leased, according to Business-Review.eu.

According to Mihai Patrulescu, senior associate, Investment Services Colliers International, the demand on the market is affected by the strained situation of the workforce.

The huge value of pre-leases in 2019 is mostly for relocations, while there aren’t that many new players, and that will cause growing vacancy rates in some Bucharest submarkets.

New buildings are more attractive, using new technologies and market trends, even if the rent value seems to grow. If not rent, the amenities offered by developers are dropping, at least for prime offices.

Vacancies in many submarkets

The most resilient submarkets are Floreasca-Barbu Vacarescu, with a historical vacancy rate of 5 percent, and CBD, with 7.5 percent or even Dimitrie Pompeiu, with 10 percent.

“There are two types of buildings that will keep high the interest of the companies. The new prime buildings with low vacancy, which will still be attractive for investors and can help the yield compression, and buildings that come with an added value angle,” explains Patrulescu.

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