The first semester of 2014 has brought a significant increase in the Total Leasing Activity (indicator including both Take‐Up and Renewals), reaching 132,009 sqm, i.e. 27% higher than the similar period of the previous year. The Total Leasing Activity volume in S1 2014 occupies the 2nd position, within the past 5 years, compared to the values reached in S1 between 2010 and 2014, S1 from 2011 still occupying the first position (with 144,614sqm).
The number of transactions entered into was 109, i.e. 12% lower than S1 2013, with 124 transactions, such increase being due to 2 transactions of over 10,000sqm.
The increase in the number of Take‐Up (companies relocating their offices) – by 61% compared to S1 2013 – was
the first increase during the past 3 years, and was a determining factor in this positive evolution. Contract renewals dropped compared to the similar period of the previous year, by 32%, representing a change of trend – the first drop after 2 years of growth.
II. The Total Leasing Activity
TOTAL LEASING ACTIVITY STRUCTURE IN S1 2014
Leases in existing buildings represented a significant percentage – 44% of the Total Leasing Activity in S1 2014, followed by Pre‐leases and contract Renewals.
An interesting fact is that, for the first time in the past 5 years, no sub‐lease contract was concluded in S1.
The analysis of the leasing activity structure for the past 5 years reveals that S1 2014 brought a consolidation of
the companies’ activities in their current offices – reflected by the highest volume of Expansions during the past
5 years, of 16,377 sqm.
TOTAL LEASING ACTIVITY STRUCTURE EVOLUTION IN S1 2014
During the first semester of this year, companies continued to regain their trust in the medium-term perspectives, which is also reflected by the high area leased under the Pre‐leasing transactions, of 32,800 sqm, is also encouraged by the emergence of certain important projects, adapted to the market situation – such as Green Court, Bucharest One ‐ which also generated the highest transactions on the market.
Leases in existing buildings slightly dropped during the first half of 2014, compared to the similar period of last year – transactions of 57,573 sqm, i.e. 3% lower than in 2013 – mainly influenced by the growth of pre‐leases and expansions.
III. Take-Up (Relocations)
Like the level of the Total Leasing Activity, the volume of Take‐Up in S1 2014 occupies the 2nd position compared to the values of the first semester during the past 5 years.
The increase by 61% in Take‐Up, from 66,089 sqm in S1 2013 to 106,750 sqm in S1 2014, which is the first increase of this segment for the past 3 years, is a positive signal for the office market.
TYPES OF SURFACES MOST FREQUENTLY LEASED
The structure of Take‐Up in S1 2014, depending on the leased area, was rather balanced – comprised between 27% and 44%. This year, big transactions – of minimum 3,000 sqm had an even higher total area, of 46,800 sqm, representing 44% of the total Take‐Up, while the transactions between 1,000‐3,000 sqm represented 29% (31,005sqm), and those below 1,000 sqm, 27% (28,945sqm).
Also in this semester, the North of the city was preferred by the customers interested in take‐Up: 79,601 sqm in the Central North and North areas – representing almost 75% of the total leases. Like the previous year, the Western Area of the city was the second important point of interest for customers, with a total of 20,604 sqm leased. In the Downtown area, a little less than 5,000 sqm were leased (4,693 sqm), exclusively from transactions below 1,000sqm.
TAKE-UP BY SECTOR
The IT&Communication sector was the most active, with 54% of the total transactions, also generating the two largest transactions on the market: Orange and Vodafone (almost 30,000 sqm in total). Like the previous year, the sectors of Professional Services and Financial services generated around 10% of the transactions, while the other sectors did not generate any significant transactions: no sector exceeded 5%.
IV. Office transactions in the country
The transactions concluded outside of Bucharest had a total area of 15,557sqm, i.e. 60% higher than during the similar period of 2013. The most attractive cities – with over 5,000sqm leased, were Timisoara (5,532sqm) and Cluj Napoca (5,190sqm). Other important transactions were concluded in Iasi – 4,100sqm or Ploiesti – 735sqm.
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