The Bucharest Office Market in the 1st Quarter of 2023

by Mirela Raicu
13 April 2023
Real Estate Reports
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The distribution of the tenants according to their sector of activity was very balanced in this quarter.
The most sought-after area was the Center-North, with 71% of the companies’ preference for renting new spaces.
At the end of the first quarter of 2023 in Bucharest, three office buildings were completed, with a total leasable area of 60,325 sqm, of which 46% was already rented.

Download the ESOP study_Office Market Snapshot_Q1 2023

Occupier focus

In Q1 2023 in Bucharest, a total area of 52,640sqm of modern office spaces was rented. 40% was represented by the extension of the lease contracts in the current premises and 60% by the rent of new surfaces (newly contracted offices and expansions in existing ones). The most sought-after area was the Center-North, with 71% of the companies’ preferences for renting new spaces, followed at a distance by the Center-West area with 13%.

The distribution of the tenants according to their sector of activity was very balanced in this quarter. The most active tenants were companies in the IT&Communication sector with 19% of the newly leased area, followed by companies in the Medical&Pharma and Energy sectors, with 14 and 13% of the leased area, respectively.

Main transactions in Q1 2023

Main Projects to be delivered in 2023

Area	Project Name	Delivery	Surface (sqm)	Location
CENTRAL-NORTH	Equilibrium 2	S1 2023	19,400	Barbu Vacarescu
	@EXPO – Building A	S1 2023	28,300	Piata Presei
	Muse	S1 2023	7,000	Piata Presei
CENTRAL-SOUTH	U-Center B	S1 2023	35,000	Tineretului
CENTRAL-WEST	ONE Cotroceni Park 2	S2 2023	34,000	Razoare
DOWNTOWN	Arghezi 4	S2 2023	7,500	Universitate

At the end of the first quarter of 2023 in Bucharest, three office buildings were completed, with a total leasable area of 60,325 sqm, of which 46% was already rented. Two of the buildings represent the second phase of multiphase projects, namely One Cotroceni Park 2nd phase and Equilibrium phase 2, and the Muse building is an independent development.

Outlook

By the end of 2023, the completion of office buildings with a total area similar to last year is scheduled, namely 153.000 sqm of office space.

The map shows the rent levels in the main business areas. During the year, some adjustments might take place due to the negotiations between the tenants and the landlords.