This year, two new boutique buildings have been put into use or delivered, with premium finishes and up to 10,000 sqm, in central areas. They will have a total area of 13,000 sqm of class A office space. Next year, it is estimated that two more buildings of this type will be delivered with a total area of 19,500 sqm.
The projects delivered in 2020 are H Victoriei 109 and Zone 313 and for next year are expected to be inaugurated Matei Millo Novotel Office and Politehnică Business Tower. The peak of deliveries on this market segment was registered in 2018, when seven projects were completed, with a total of 31,948 sqm.
Who rented office space in boutique buildings in 2020
Among the tenants who have signed leases or pre-leases in boutique buildings in 2020, there are advertising agencies, business consulting firms, law firms, construction companies, IT&C companies, etc., such as Skin Media, Just Master Activities, Aktor, S.M.A.P.E., Cegedim RX, Bit Sentinel, etc. The areas traded for rent vary between 154 sqm and 3,500 sqm. The rented and pre-rented spaces have cumulated offices with a total area of 17,150 sqm in the first nine months of 2020.
The transaction of the year on this market segment in 2020
„Astoria Business Center is one of the boutique office buildings that won investors’ interest in 2020 through its premium location – in the heart of the Capital and through the flexibility of class A office spaces. In total, this business center has a rentable area of 4,200 sqm with office space, to which is added an area of 420 sqm of terraces. The building also has 48 parking spaces, arranged on the two levels of the basement. The building has BREEAM Very Good green building certificate, being energy efficient“, states the transaction consultant Adrian Călinescu from ESOP Consulting | CORFAC International.
The investor who bought the Astoria Business Center is Dona Real Estate. The acquisition budget was about 9 million euros. Dona Real Estate entered the Romanian market by purchasing boutique office buildings. Besides this building, it also has Izvor 80 Office Building (6,600 usable sqm) and Rosetti Business Center (2,600 usable sqm) in its portfolio.
„Boutique buildings have several advantages during this pandemic: less traffic in the building and thus a lower health risk, smaller spaces on the floor, with fewer employees, excellent location, where it can be easily reached. Even if the office market is undergoing a period of transformation due to COVID-19, on this segment the interest for both rental and acquisition is still maintained, ESOP having in works, in various stages of negotiation, transactions with similar buildings, states Alexandru Petrescu, Managing Partner at ESOP Consulting l CORFAC International.
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