Bucharest, 12.11.2018. CBRE, the global and national leader in real estate consultancy, announces the evolution of the office space market in Bucharest in the first nine months of 2018. The rental demands amounted to 220,000 sqm and 76 per cent of the premises traded this year are in Class A office buildings in the third quarter (Q3) in 2018, there was an intense activity of 73,000 sqm traded, of which 70% are located in Class A buildings.
T3 2018 was a period of intense growth for CBRE, which participated in over 50% of the agreements. At the level of the first nine months of 2018, CBRE was a consultant in over 32% of the transactions.The modern office space stock in the capital was around 2.89 million square feet at the end of October 2018.
“The office space market has grown at a rapid pace in 2018, driven by both the growth in consumption that has prompted the expansion of many companies and the drop in available surfaces. The results of the first three quarters of the year, in terms of delivered surfaces, are rising over the same period in 2017, but there is still room on the market for new projects. In 2019 we estimate an increase in activity, with 15 projects announced for completion and about 341,000 square meters to be delivered, according to our estimates. Also, 40% of the total surface that will be ready in 2019 is already leased, which is still a proof of the company's appetite for finding offices suitable for their needs", said Mihai Paduroiu, Head of Advisory & Transaction Services Investor Leasing of CBRE Romania.
In the first nine months of 2018, newly built and delivered projects reached an area of 133,000 square meters, up 18% over the same period in 2017, when 109,000 square meters of office space were completed.
Of the 73,000 sq m traded in Q3 2018, 70% are found in Class A office buildings. From the point of view of the type of transaction, 55% consist of new rental requests and expansions of premises (15%), pre-lease payments (8%) and relocations (32%), and the remaining 45%. The most active areas in terms of rental activity were: the western area (23% of the total rents), Pipera (22%), CBD (Piata Victoriei area, Charles de Gaulle Square - 21% and central zone (18%).
At the level of the first three quarters of 2018, out of the total traded area, which reached 220,000 sqm, 76% were in Class A buildings. The most active areas, in terms of total demand, were: west of the capital (31%), central area (22%), northern (16%), Pipera (14%) and CBD (14%). Of the total rental demand, 72% were: new demands and space expansions (20%), pre-rentals (27%) and relocations (25%). The renegotiations have accounted for the remaining 28% of all requests received.
Currently, Bucharest is divided into seven business areas, where all major office buildings are concentrated. Five of the seven areas each have a modern warehouse space of more than 400,000 square meters. In the northern area there are 27% of the total office space in the capital, followed by Pipera by 24%, the central area by 16%, the CBD by 15% and the western area by 14%. The eastern and southern areas have a 4% share of the modern office space stock. in the first nine months of 2018, interest remained at high levels in the West, Center, and CBD. An important trend is also the creation of new office poles in areas such as New Times or Free Press Market - Expo Blvd.