News Article Renegotiations drive the Bucharest office market

by Ákos Budai | Office

Q1 2017 saw Class A & B take-up reach approximately 97,300 sqm on the Bucharest office market and the average transaction size increased from approximately 1,800 sqm in Q1 2016, to approximately 2,400 sqm in Q1 2017.  There were 9,550 sqm delivered in two projects in the CBD (Central Business District), Knight Frank reports.

Over 55% of Q1 total take-up were renewals/renegotiations mainly in the IT&C and automotive industries. The biggest transaction was the 20,000 sqm renewal/renegotiation in Pipera and the upcoming two were the 10,300 sqm in Calea Floreasca/Barbu Văcărescu, and the 10.000 sqm in Presei Libere Square. Calea Floreasca/Barbu Văcărescu was demand leader with 30% of the total take-up of Q1. 

”The market is continuing its’ growth trend after the record year of 2016, even if we won’t have that many deliveries. It is interesting to follow what will happen in the center, CBD and Pipera, where, so far, we saw the biggest transaction of this year”, says Horațiu Florescu, Chairman & CEO Knight Frank Romania.

The two projects delivered so far in 2017– Aviatorilor 8A and Dorobanților 33 – represents only 5% of the office space we expect to be delivered until the end of the year, accounting around 200,000 sqm. 
 
The Center-West will be the main supply generator, with over 50% of class A office space planned for delivery, followed by Dimitrie Pompeiu with approximately 30%, but we see an increasing activity also in the Center and the CBD.