From the total new supply, the Center-West sub-market claimed the largest share, respectively 43% with Sema Park II – Oslo & London office building developed by River Development.
Together with Forte Partner’s newest office project Tandem and the first phase of Expo developed by Atenor Group, the three new buildings have an overall occupancy rate over 70% at the end of Q1.
The Center-West sub-market is shaping up as the performer of the year
By the end of 2022, circa 66.000 sq m in another three office buildings will be added to modern stock.
After it registered the largest share of the Q1 new supply, the Center-West sub-market will also be the largest receiver of the future new supply with the overwhelming majority (89%).
The area will expand its office stock with the second phases of two well performing projects, respectively One Cotroceni developed by One United and AFI Tech Park developed by AFI Europe.
Another approx. 94.000 sq m are forecasted to be added at the capital city’s modern office stock by the end of next year, when 5 new office buildings will be delivered.
Bucharest almost doubled its total leasing activity in a year-to-year comparison
Office leasing activity in Bucharest was quite animated during the first three months of 2022, reaching at 60,400 sq m, with 44% more compared with the first quarter of the previous year.
Take-up (total transactions excluding renewal/renegotiation) represented 75% of the total leasing activity (TLA), with 53% higher compared with the one from Q1 2021.
Pre-leases represented only 20% from the take-up, the market still having the possibility to accommodate new demand immediately.
The largest pre-lease deal was concluded by the iGaming software supplier, EveryMatrix which leased 7,500 sq m in Arghezi 4 project developed by Strabag in the Center office sub-market.
Computers & Hi-Tech companies are the leading source of demand with 40% of the total leased area in the first three months of 2021, followed by Professional and Consumer Services & Leisure sectors.
At the end of Q1, Bucharest modern office stock recorded a vacancy rate of 13.9%, however, class A office projects register a smaller vacancy rate of 11.6%.