The Bucharest Office Market Update S1 2023

In S1 2023, the total volume of transactions on the Bucharest office market reached 176,900 sqm.

The most sought-after area in S1 2023 was the Central-North one, with 69% of the total (Pre)Lease & Expansions volume.

The IT&C industry had clearly led the office market in S1 2023, with 35% of the newly leased areas.

Download the study ESOP_Office Market Update in S1 2023

OCCUPIER FOCUS

Lease Transactions by Category

In S1 2023, the total volume of transactions on the Bucharest office market reached 176,900 sqm.

From this, (Pre) Leases & Expansions represented 54%, and the remaining 46% was represented by Renewal / Renegotiation transactions.

(Pre) Lease & Expansions, By Area

The most sought-after area in S1 2023 was the Central-North one, with 69% of the total (Pre)Lease & Expansions volume, followed at a great distance by the Central-West area with 18% and the Downtown, with only 6%.

 (Pre) Lease & Expansions, By Industry

The IT&C industry had clearly led the office market in S1 2023, with 35% of the newly leased areas. This represents an increase of 50% of its percentage compared to 2022 when the IT industry represented 23% of the transactions.

The Financial Services and FMCG sectors followed with 14% and respectively 8% of the leased area.

Relative Stability on Office Leasing

S1 2023 maintained both on (Pre) Leases & Expansions and on Renewals segment a volume relatively close to S2 2022.

The (Pre) Leasing & Expansions segment maintains yet in S1 2023 at a 17% lower level than the first semester of 2022.

The Main Transactions in S1 2023

Tenant Lease Area

(sqm)

Building Area
EMAG 10,000 Globalworth Square Center North
TRANSILVANIA BANK 9,960 Green Court A Center North
VOIS 5,460 The Bridge 2 Center West
COCA-COLA 4,500 Globalworth Campus – Bldg. B Center North
MINISTRY OF TRANSPORT 3,780 Sema Parc London Center West
NUCLEARELECTRICA 3,140 Crystal Tower Downtown
Auchan (retail space) 2,600 U Center – Building B Center South
ADSWIZZ 2,270 AFI Park Floreasca – Bldg. A Center North
BUCHAREST STOCK EXCHANGE 2,230 America House Downtown
FLIP TECHNOLOGIES 2,000 Riverview House Atrium Center West

OFFICE DELIVERIES

Main Office Projects to Be Delivered in 2023

Area Project Name Delivery Surface (sqm) Location
CENTRAL-WEST ONE Cotroceni Park – Phase II S1 2023 34,000 Razoare
CENTRAL-NORTH Equilibrium – Phase II S1 2023 19,400 Barbu Vacarescu
@EXPO – Building A S1 2023 28,300 Piata Presei
Muse S1 2023 7,000 Piata Presei
CENTRAL-SOUTH U-Center – Building B S2 2023 35,000 Tineretului
DOWNTOWN ARGHEZI 4 Business Center S2 2023 7,500 Universitate

At the end of S1 2023, four office buildings were completed in Bucharest, with a total leasable area of 88,700 sqm.

OUTLOOK

Although if compared to S1 2022, the deliveries have been 11% lower this semester, the total annual volume in 2023 is expected to reach 136,500 sqm by the end of the year. This level would represent an increase of 28% compared to the office spaces delivered in 2022.

Considering yet that for 2024 there will be highly limited new deliveries, as most initially planned projects have delayed the commencement of the construction works, office deliveries will be under pressure for the following 12-18 months. This will be compensated by a series of office spaces becoming available in existing buildings, where leases reach expiry dates and tenants renew a new cycle for a smaller size, in the context of the hybrid working systems.

Asking Rent Levels in S1 2023

In S1 2023, the asking rent level of several office buildings got slightly increased, due to the high inflation rate on the market.

Please find below a general view of the market rents level in Bucharest, in Mid-2023.

ESOP Partners in Time

Portofoliul ESOP cuprinde, pe lângă clădiri de birouri de închiriat în București, spații de birouri de vânzare în București, parcuri industriale și hale de închiriat, precum și oferte de birouri în principalele orase ale țării. Dacă dorești mai multe informații, poți dialoga cu un consultant ESOP completând acest scurt formular sau telefonic la  (+4) 0723.26.61.97 sau (+4) 021.528.04.40. Vom răspunde cu plăcere și prompt solicitării tale!


Mirela Raicu

Founder Partner of ESOP Consulting CORFAC International, coordinator of the Corporate Office Spaces division, with 18 years of experience in real estate consulting and entrepreneurship.

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