In the first half of 2014, the share of relocation transactions with office space of over 3,000 sq m was 44% (compared to 21% in H1 2013), while the share of transactions below 1,000 sq m decreased to 27% (compared to of 40% in S1 2013)
Overall, the market for transactions with office space increased by 27% in S1 2014 compared to H1 2013
The engine of the office market in S1 2014 was the relocation segment, which advanced by 61%, unlike the segment of contract renewals, which decreased by 33%.
In the first half of 2014, the office space rental market experienced a radical change in structure, compared to the same period last year, with the largest share going to transactions with spaces of over 3,000 square meters, with 44% of the total, a share more than double last year – when it was 21%. In other words, in H1 2014, the large transactions segment took a wider slice of pizza, from an even bigger pizza than in 2013 – the total market being in turn growing by 27%.
“The office rental market keeps in S1 2014 the dynamism observed in the last two years, which supports our opinion that the confidence of managers in the Romanian economy is on an upward trend. We hope that the second half of 2014 will be just as active and both large and medium-sized companies will accelerate the relocation process to better quality offices, “because the market offers competitive solutions at this time,” says Alexandru Petrescu, Managing Partner at ESOP Consulting / Corfac International.
Last year, the first half was dominated by relocation transactions with spaces of up to 1,000 square meters, occupying a share of 40% of the total market (according to the chart below).
II. The office market in Bucharest grew by 27% compared to last year
In total, in S1 2014 the market for transactions with office space amounted to a total volume of 132,009 sq m, increasing by 27% compared to H1 2013. It is the second consecutive year in which the office market in the Capital grows in the first half, this being a sign that the whole year will prove to be better than the previous one, in terms of office transactions.
III. Positive changes in the general structure of the office market in S1 2014
The engine of the office market in H1 2014 was the relocation segment, which increased by 61%, as opposed to the contract renewal segment, which decreased by 33%.
In the first half of 2014, the volume of spaces traded by new tenants, known as relocation transactions, exceeded the volume of spaces for which old leases were renewed. Thus, the relocations totaled 106,750 sqm and exceeded the contract renewals, which totaled only 25,259 sqm and suffered a setback, by 33%, compared to the same period last year.
The stars were the pre-lease and expansion of office space transactions, which registered notable increases compared to the same period of previous years, they also represent a positive sign for the future of this market – according to the chart above.
PR & Media Coordinator,
PR & Media Consultant, with background as a journalist in the economic press and experience as a consultant in Urban Development.
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