The Structure of the Office Market in S1 2013

Transactions with office space under 3,000 sq m dominated the first half of 2013

The structure of the office market in S1 2013, according to the size of the traded areas: the spaces under 3,000 sq m represented almost 80% of the total;

Change in the structure of the office market, according to the type of office transactions: relocations increased in number and 21% of their share was represented by new market demands;

Favorable evolution for ESOP Consulting: it concluded 55 relocation transactions, which represents 51% of the total number of relocations reported by professional consultants in the field.

I. The number of transactions performed on the office market in the Capital increased by 22%, in S1 2013 compared to S1 2012, the engine of this growth being the relocation transactions, with areas under 3,000 sq m.

Out of a total of 124 transactions, 107 were relocated, totaling 66,089 sqm, which represents 58% of the total area rented in H1 2013. Of the 107 relocation transactions, 55 transactions were concluded through the company ESOP Consulting | CORFAC International, which represents a share of 51%.

“The first half of this year was particularly dynamic, a number of companies have begun to re-evaluate growth prospects and have started relocation or expansion processes or are in the process of being evaluated. We also witnessed the entry of new companies on the market or the initiation of new divisions by existing companies in the market. 12 of the 55 transactions made by ESOP involved new requests in the market from companies in the IT, energy or medical field and this aspect is encouraging for the office market “, says Alexandru Petrescu, Managing Partner of ESOP Consulting | CORFAC International.

At the level of the entire market, out of the total of 66,089 sqm of relocation transactions, approx. 14,279 sqm were generated by the “new demand” in the market, ie a percentage of approximately 21%.

Transactions with office space that had areas of up to 1,000 square meters accounted for a share of 40% of the total leased area in the entire market, one percent higher than the share of transactions with areas between 1,000 and 3,000 square meters. The two segments together represent 79% of the rented area in Bucharest, in the first semester of 2013. The segment with transactions of over 3,000 sq m had the lowest share, representing only 21%.

II. Rents in existing buildings increased in both number and area, while pre-rents decreased.

In S1 2013, 107 relocation transactions were concluded, while in S1 2012 there were 92 transactions. The most dynamic segment of relocations was that of rents in existing buildings, the expansions and pre-rents being decreasing.

The renegotiations have had an increasing evolution, both in number and in total area.

If in the first half of 2012 10 renegotiation transactions were concluded, with a total of 17,440 sqm, this year, in the first half 17 tenants clapped with the owners of the offices they already occupied, for an extension of contracts, their spaces totaling a total area of ​​37,361 sqm. The share of renegotiations was 36% of the total office market.

Only 1% of the total transactions were of extension type, in the existing building, decreasing compared to S1 2012, when the expansions amounted to approximately 14,326 sqm. This time, most clients who wanted a larger workspace opted for a relocation, to the detriment of an extension in the existing headquarters. This is what the companies SIEN / IMINENT Technology, Asbis Romania, IBERIA Renovables did, which relocated through the company ESOP Consulting, in larger spaces, located in other office buildings.

III. Favorable evolution for ESOP Consulting: it concluded 55 relocation transactions, which represents 51% of the total relocations reported by all consultants in the field.

In the first half of 2013, more than half of the tenants who moved to another office were clients of ESOP Consulting. Thus, 55 relocation transactions were performed by ESOP Consulting, out of a total of 107 transactions registered at the market level reported by professional consultants. Once again, these performances confirm the leading position of ESOP Consulting in the segment of renting office space for medium-sized companies in Bucharest.

“We are confident that the second half of 2013 and the first half of 2014 will be dynamic, so that more of the negotiations started in H1 2013 will have a finality in the next period. The evaluation processes are more careful, more cautious, but there is a greater degree of trust on the part of the companies and the desire to take advantage of new opportunities “, declares Alexandru Petrescu, Managing Partner of ESOP Consulting | CORFAC International.

Maria Neda

PR & Media Coordinator, PR & Media Consultant, with background as a journalist in the economic press and experience as a consultant in Urban Development.

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