Dividing the office market by the size of new traded spaces: the large office tenants dominated the market in 2019, in Bucharest, the segment of transactions with areas of over 10,000 sqm cumulating the most significant volume of new traded spaces
75% of the large tenants were in the IT&C field and 25% in the Financial field
Seven large rental transactions, with over 10,000 sqm made in 2019, accumulated an area of 104,520 sqm, representing approximately one-third of the total new office rentals (rentals, pre-rentals, and extensions) in Bucharest. In the previous year, there were only two transactions with areas of over 10,000 sqm, which totaled 35,000 sqm, which means that in 2019 spaces with a volume three times higher were traded.
On the other hand, there is a decrease in the segment of transactions with areas between 5,001 sqm and 10,000 sqm, from a total volume of 67,213 sqm to 34,400 sqm.
“As in previous years, in 2019, the main engine of the office market was the IT&C, BPO, and SSC companies sector. We estimate that the dynamism of these industries will be maintained in 2020. The offer of approximately 300,000 sqm announced for this year will offer attractive relocation options to expanding companies “, says Alexandru Petrescu, Managing Partner at ESOP Consulting | CORFAC International.
The middle transactions segment, with office spaces with areas between 3,001 sqm and 5,000 sqm, is close to the previous year: ten transactions, with a total of 37,800 sqm, in 2019, compared to nine deals in 2018, with a total of 38,100 sqm.
The oscillations were reported on the segments of spaces for SMEs, with up to 250 employees. Thus, on the section of spaces with areas between 1,001 and 3,000 sqm, the number of transactions decreased from 51 to 43, and the volume of traded spaces from 83,480 sqm to 72,260 sqm.
Instead, the segment of renting office space up to 1,000 sqm has seen an increase: from 131 transactions, with a total of 53,724 sqm, in 2018, to 143 transactions, with a total of 60,210 sqm, in 2019.
From which areas do the big tenants come: 75% from IT&C and 25% from Financial
In the segment of large office transactions, with areas of over 10,000 square meters, tenant companies come from only two sectors of activity: IT&C and Financial.
The share of IT&C companies is higher in the segment of transactions with vast areas than in the entire market. The large tenants in the IT&C field signed contracts for approximately 75% of the total volume of transactions of over 10,000 sq m. The remaining 25% were occupied or reserved by companies in the financial field.
At the level of the entire office market in Bucharest, the fields are much more diversified. The IT&C sector represents half of the total. On the second place is the Finance, Banking, and Insurance field, with 17% and on the third place Constructions and Real Estate (which also includes operators of co-working office space), by 8%.
ESOP is one of the leading companies in the real estate market in Romania, being among the top 5 companies specialized in the commercial segment of the market.
Started progressively in the spring, the gradual return to the office is expected to register a new wave this autumn, with the opening of the new school year. The start of school can stimulate more employees to return to the office, especially employees who have children in kindergartens and schools located in the vicinity of […]
River Development announces that International Institution SEK Bucharest International School is opening its first school in Romania in a building in Sema Parc, for current educational activities and future expansion. The transaction was brokered by ESOP Consulting, a local real estate consulting firm. Founded in 1892, the International Institution SEK Bucharest International School offers its […]
With a more relaxed pandemic context, without the obligation to wear masks indoors, companies, together with employees, decide whether to continue using the hybrid work system and which of the 5 hybrid work modes suits them best. It is possible that employees worked from several places during this pandemic period and returning to their usual […]