Demand for Offices with medium Budgets shows Signs of a Way out of the Crisis

For the first time since 2008, since entering the real estate crisis, the average budgets increase in weight, and the budgets under 11 euro / sq m decrease slightly. In 2014, we estimate that the share of budgets of 11.1-15 euro/sqm/month will continue to increase, among the average companies, without having significant fluctuations from 2006-2011.

64% of applicants for medium office space preferred business centers

STRUCTURE OF THE REQUEST FOR MEDIUM OFFICES 2006-2013: There was a relative stabilization in 2012 and 2013, after the radical change in the share of budgets and large fluctuations from 2006 to 2012.

The demand segment for offices with budgets between 11.1 and 15 euro/sqm/month was the only one that increased in 2013, after five years of continuous growth of only small budgets, below 11 euro/sqm/month. Thus, in 2013, 2% of the total demand migrated from the segment below 11 euro/sqm/month, in the middle segment, between 11.1 and 15 euro/sqm/month.

“In our experience, medium-sized companies, which have between 30 and 100 employees, allocate between 5 and 8% of turnover for rent, so that in the period 2008-2012 most of them had to adapt to new economic conditions and to adjust expenses. In 2013, in our company, however, we had several requests for relocation to better spaces, with a new image or a better location, with medium budgets, of over 11 euro/sqm/month, but up to 15 euro/sqm/month and we estimate that this middle segment will recover quickly in the next two years “, says Alexandru Petrescu, Managing Partner of ESOP Consulting | CORFAC International.

In fact, from 2006 to 2013, the demand segment with medium budgets, between 11.1 and 15 euro/sqm/month, registered a balanced evolution – with a share between 18 and 31%, compared to the other two segments, which rose and fell sharply respectively.

In 2013, business centers were preferred

In 2013, the requests of medium-sized companies monitored by ESOP Consulting went mainly to business centers, in a percentage of 64%, the remaining 36% looking for villas for offices.

Where are the most sought after office spaces

Most potential medium-sized tenants who showed their intention to relocate opted for office spaces located in the central areas of Bucharest: Victoriei Square, Aviatorilor, Dorobanti, Domenii, Unirii, Universitate, Cotroceni, Grozavesti, Aviatiei and preferred office buildings with quality spaces, with an average rent of 9-12 euro/sqm, parking spaces and close to the subway, says Alexandru Petrescu, from ESOP.

Maria Neda

PR & Media Coordinator, PR & Media Consultant, with background as a journalist in the economic press and experience as a consultant in Urban Development.

Postari similare

Renegotiations pulled up the office space market in the third quarter

During the third quarter of 2020, which just ended, the office market rental reached 56,730 sqm, a transaction level closet o the one registered in the same quarter in 2019, namely 88% of that period, according to ESOP Consulting. For more than half of these spaces, tenants preferred to stay in the same office buildings, […]

Read more

The Large Office Transactions, of Over 10,000 Sq m, Were Made Only by Companies in the IT&C and Financial Fields, in 2019

Dividing the office market by the size of new traded spaces: the large office tenants dominated the market in 2019, in Bucharest, the segment of transactions with areas of over 10,000 sqm cumulating the most significant volume of new traded spaces 75% of the large tenants were in the IT&C field and 25% in the […]

Read more

What would be an improvement for office working conditions of 200,000 employees in Bucharest

In Bucharest, more than 200,000 employees work in office buildings built by private companies, which are more than 10 years old. Also, more than 250,000 employees are in office buildings inaugurated in the last 10 years, according to an analysis by the real estate company ESOP Consulting l CORFAC International. Tenants are looking for new […]

Read more

Join the discussion

*/ ?>