OFFICE TRANSACTIONS ANALYSIS 2012: Headquarters expansions increased by 35%
- In 2012, companies expanded in office space with a total area of 18,637 square meters, 35% more than in 2011 and 56% more than in 2010
- Increases were also recorded in the segments of pre-office rental and renegotiations
- Overall, the office transaction market declined slightly, by 10% in 2012
In 2012, companies in Bucharest rented additional office space in the buildings where they had their headquarters with a total area of 18,637 sqm, which is 35% more than in 2011 (13,713 sqm) and 56% more than in 2010 (11,908 mp). The expanding companies rented extra space with areas between 150 sqm and 3,607 sqm.
“In 2012, the office space market underwent a significant structural change, with positive signals coming from the space expansion and pre-rental segments, which show that some companies are increasing their activity. We hope that this phenomenon will spread among as many companies in Romania in 2013 and 2014. The increases in the segments of office space expansion (by 35% compared to 2011) and pre-rental (by over 50%) have counterbalanced the decrease of relocations (by 44%) “, declares Alexandru Petrescu, Managing Partner of ESOP Consulting.
Apart from the expansion transactions segment, two other market segments also had positive evolutions: pre-leases and renegotiations. The pre-lease space segment reached a volume of 59,255 sq m, with over 50% more than in 2011 (38,805 sq m) and almost triple compared to 2010 (when it totaled only 17,219 sq m). The contract renegotiation segment increased by 35%. However, in 2012, the overall office space market decreased slightly. The total volume of transactions was 238,862 sq m, lower by about 10% compared to 2011.
Evolution of the volume of transactions in the period 2010-2012
The only type of transactions that experienced a decrease in 2012 are relocations (new occupation). Thus, in the year just ended, the total area of company relocations of 90,482 sqm is 44% lower than in 2011 (when the whole area was 158,989 sqm).
Share of types of transactions with office space in 2012
Slowly, slowly, the market profile is changing. In 2012, relocations accounted for less than half of the total market – more precisely 37%, and renegotiations and pre-leases increased, reaching 30% and 25%, respectively. And the share of expansion transactions increased from 5% in 2011 to 8% in 2012.