The transactions with office spaces of over 3,000 sq m were the ones that raised the office market in Bucharest in the first quarter of 2014. The other two market segments – transactions with spaces under 1,000 sq m and deals with spaces between 1001 and 3,000 sq m – maintain a volume close to the first quarter of previous years, between 14,000 – 15,000 sqm.
“In the first quarter of 2014, 36 transactions with office space of up to 1,000 sqm brought a volume almost equal to 16 deals with spaces between 1,001 sqm and 3,000 sqm, but lower than the volume of the three contracts over 3,000 sqm, completed during this period. Evaluating the evolutions registered in the first quarter of the last three years (2012-2014), we can say that the transactions under 3,000 sq m give the constant, the stability of the market, while the deals over 3,000 sq m provide the dynamics with, its increase.
The balance of the first quarter and the numerous discussions started during this period for renting other office spaces make us optimistic about the evolution of the next quarters of 2014 on the office market “, says Alexandru Petrescu, Managing Partner of ESOP Consulting | CORFAC International.
If in the first quarter of 2013, transactions with spaces of over 3,000 sqm represented only 19% (7,000 sqm), in the first quarter of 2014, they amounted to a share of 43%, respectively 22,600 sqm. The other two segments, on which the most significant number of transactions are made – spaces under 1,000 sqm and transactions with spaces between 1001 and 3,000 sqm – are equal in weight, having a minimal variation in volume in the first quarter of the last 3 years.
T1 2014 was a better quarter on the office market
In the first quarter of 2014, the total trading activity on the office market increased on average by approximately 17% compared to the average of the first quarters of 2013 and 2012. From the point of view of the type of transactions, the engine of this positive evolution on the office market in T1 2014 was the relocation activity, the office transactions that led to the relocation of clients to new offices, either by renting, expanding, or pre-renting office space.
On the other hand, the volume of contract renewals decreased by 37% compared to T1 2013, which means that the current offers in the first quarter of this year proved to be better than the previous rental solutions.
Notable is the increase in the total volume of pre-leases, which in T1 2014 reached 30% of the overall market volume.