ARTICLES LABELLED WITH TAG Mădălina Cojocaru

Close to 80% of the office stock is at risk of obsolescence in markets such as Amsterdam, Paris and London, while in CEE-based capital cities this figure stands at an average of 43%, according to a report by Cushman & Wakefield Echinox.

The volume of office leasing in Bucharest amounted to 168,000 sqm during H1 2024, down 11% compared to the same period of last year, with the average new lease deal at more than 1,100 sqm, according to Cushman & Wakefield Echinox. 

Companies leased 91,000 sqm of office spaces in Bucharest in Q1, up by 63% compared to the same period of last year, according to a Cushman & Wakefield Echinox report.

While 116,000 sqm of office spaces were leased in Bucharest during Q4 2023, the overall transactional volume climbed to 463,000 sqm during the whole year, marking an all time take-up record, according to a Cushman & Wakefield Echinox report.

The average office transaction in the first nine months of 2023 stood at 1,810 sqm, which is the highest average of the past four years and close to the level of 1,900 sqm recorded in 2019, according to Cushman & Wakefield data.

Office rents in Bucharest rose by up to 15.8% in the 12 months to June 2023, with the highest prices recorded in the CBD area of the city, according to a report by Cushman & Wakefield Echinox. 

The Center - West area (Politehnica, Orhideea, Cotroceni) has become the largest office hub in Bucharest, overtaking the Floreasca – Barbu Văcărescu submarket in Q1 2023, according to research by Cushman & Wakefield Echinox. This area is set to maintain its leading position in the medium term, considering the current development pipeline in the city. 

New demand in Bucharest's office market (new leases, pre-leases and relocations from non-competitive stock) had a share of 57% or 185,000 sqm of the total office take-up in 2022. Demand itself was up 10% year-on-year, according to a study by real estate consultancy Cushman & Wakefield Echinox. 

Prime headline rents in Bucharest continued to increase in the third quarter, reaching a monthly level of €19.5 per sqm, compared with €18.5 per sqm at the beginning of the year. However, the capital city remains among the less expensive destinations in Europe in terms of office occupancy costs. 

The total office stock in Bucharest reached 3.3 million sqm at the end of the first semester of 2022, with just one new building (AFI Tech Park – phase 2) spanning 25,000 sqm being completed in the second quarter of this year.