The Expozitiei Area is positioned between the poles Orhideea-Politehnică and Barbu Văcărescu-Aviației
At the beginning of 2018, there is even closer proximity between the lower limits of rents in the main business poles of the Capital, where most new office buildings are concentrated.
Five years ago, rents for new class A office space, from the business pole Barbu Văcărescu-Aviatiei-Dimitrie Pompeiu started from 16 euro/sqm/month and reached 17 euro/sqm/month. Now start from 14.5 euro/sqm/month and reach 17.5 euro/sqm/month, close to the lower limit in the business pole Orhideea-Grozăvești–Politehnică, where the rents are 13-14,5 euro/sqm/month.
In the Expozitiei area, several large-scale projects have been announced in recent months. And a new business pole is outlined in the Expozitiei–Presei Libere Square area, which is positioned as the level of rents between the Barbu Văcărescu-Aviatiei-Dimitrie Pompeiu pole and the Orhideea-Grozăvești-Politehnica pole, with values of 14.5-16.5 euro/sqm/month.
In 2017, major office projects under construction were concentrated in the main office poles in Bucharest, their number increasing from two to five business poles. In parallel with the development of the north-central and Victoriei-Aviatorilor areas, the center-west pole was consolidated, the Unirii – Timpuri Noi pole was opened, and a new office pole was announced in the Expozitiei area – Presei Libere Square.
Class A office buildings with many facilities, under construction in the main office poles in Bucharest, will deliver an estimated area of over 600.000 sqm in 2018-2021 and will attract large companies in Romania – like IBM, BCR, ING, Bitdefender, Amazon, etc. have already signed pre-lease agreements.
Rents for Class A office space from the five poles of offices are now at a level between 13 and 18 euro/sqm/month, depending on the area and the facilities offered.
Office spaces will be gradually vacated in existing buildings by large tenants and will make room for medium-sized tenants. Those with budgets of 8-12 euro/sqm/month will thus have access to quality office buildings in good locations “, says Alexandru Petrescu Managing Partner at ESOP Consulting at CORFAC International.
The significant events in the office market in 2017 were the inauguration of the first phases of the Timpuri Noi Square project (which opened a new business pole in the Capital, Unirii-Timpuri Noi) and The Bridge (which starts the delivery of class A spaces in the Orhideea-Grozăvești-Politehnică area).
In 2018-2019, many more deliveries of new high-end buildings were expected in all five office poles, and the most prominent activity will be the poles from the center-west and Expozitiei.
Among the major office projects that will deliver new Class A office space in 2018-2019 are:
The Mark, D’OR Business Center, in the business pole in Victoriei Square – Charles de Gaulle-Dorobanti.
“The evolution of rents in the main office poles in 2018-2019 will depend on the pace of deliveries and the dynamics of business growth and the number of employees of large companies in Bucharest.
We estimate that there will be a tendency to equalize the average rent in the main business poles in Bucharest, where there will be most deliveries in the next two years. We are talking about business poles like Orhideelor-Politehnică, Pompeiu-Barbu-Văcărescu, Expoziției- Presei Libere Square, Unirii-Timpuri Noi, etc.
We consider that 2018-2019 is one of the most favorable periods since the outbreak of the 2008 financial crisis. For companies that want to secure their new premises at a competitive price-quality ratio, by signing pre-lease contracts before the time of buildings delivery,” added Alexandru Petrescu Managing Partner at ESOP Consulting l CORFAC International.
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