The Office Market in Q2 2019

Overview

In the second quarter of 2019 five new office projects were completed, with a total GLA of 100,000 sqm, of which around 55% being already pre-rented. In this quarter some companies opted to maintain their current office space, the expansion and renewal transactions adding up to 39.000 sqm.

Download The Office Market Snapshot-Q2 2019

Occupier focus

In Q2 2019, demand for modern office space in Bucharest was of 90,000 sqm. Net take-up represented 67% from the total volume recorded and consisted mainly of pre-leases and new operations. North and downtown areas became once again the most attractive ones, with approx 75% of the net take-up.

The most active occupiers were companies from Technology and Telecommunications sector – 42% from the total take-up, followed by companies from Manufacturing, Medical&Pharma and Financial sectors.

Main transactions in Q2 2019

Outlook

By the end of 2019, over 300,000 sqm of modern office space is forecasted to be completed. Due to the high number of office projects under development, rental levels are forecasted to remain stable. Demand for quality office space is projected to follow the same positive trend going forward.

Main Projects to be delivered in 2019

The main Bucharest office areas benchmark

The market best practice and our recommendations

1. If you want to get the best market PRICE/QUALITY ratio, take your time to properly run the relocation process

• in this way you benefit for the best opportunity on the market
• the sooner you start the information and searching process, the more you keep the benefits of your side and having a strong negotiation position.

2. If you want to stay in the current location, run the relocation process as if you wanted to move 100%. Make it not fake it.

• in this way you empower your negotiation position with current landlord
• running this process helps a company to be in a position to make an informed and assumed decision

3. Run relocation or renewal process through ESOP:

• 17 years market practice, entrepreneurial approach, cost – efficient attitude.
• access to market practice and similar transactions carried over time and currently
• over 700 business centers in our the largest property database in Bucharest

REFERENCES for the ESOP team

Harman Romania ·         10.000 sqm ·         Metroffice – Bucharest ·         Pre-lease and enter Romania Market	1 and 1 Romania ·         3.500 sqm ·         Sky Tower – Bucharest ·         Relocation from Non-Competitive Stock
Hella Romania ·         4.000 sqm ·         City Business Center – Timisoara ·         Pre-lease and relocation from Non-Competitive Stock	Medlife ·         2.300 sqm ·         Victoriei BC – Bucharest ·         Relocation from Non-Competitive Stock
Hella Romania ·         5.000 sqm ·         EBP – Craiova ·         Pre-lease and relocation from Non-Competitive Stock	Beller Soft ·         1.250 sqm ·         Timpuri Noi Square – Bucharest ·         Relocation from Non-Competitive Stock
Lukoil Technologies ·         4.300 sqm ·         Aviatiei BC – Bucharest ·         Relocation from Non-Competitive Stock	Ludan Engineering ·         1.250 sqm ·         AFI Tech Park – Bucharest ·         Pre-Leasing from Non-Competitive Stock

 

ESOP’s portfolio includes, in addition to office buildings for rent in Bucharest, office spaces for sale in Bucharest, industrial parks and warehouses for rent, as well as office spaces for rent in the main cities of the country.

If you would like more information, please contact the ESOP team by filling this brief form, or by phone (+4) 0723.26.61.97 or (+4) 021.528.04.40. We’ll promptly answer your inquiry!