Around half a million sq. m of office spaces are vacant in Bucharest

Around 500,000 sq. m of office spaces are unoccupied in Bucharest, reflecting a vacancy rate of 15.2%, the highest availability being reported in the Pipera North, Center-West and Floreasca submarkets.

There is still a significant discrepancy between A and B-class projects in terms of vacancy rates, a difference which could be addressed through investments made with the purpose of modernizing old buildings.

As a consequence, 50% of the total vacant spaces (~250,000 sq. m) can be found in buildings developed over 15 years ago, most of them requiring new investments in order to attract new tenants.

According to the Bucharest Office Market 2022 report released by Cushman & Wakefield Echinox, 50% of the Bucharest office stock has an average age of over 10 years, and almost 15% is older than 15 years.

The ”youngest” office areas are Center-West and South, with an average age of the office buildings of 7 and 9 years, respectively.

In terms of leasing activity, the new demand had a share of 57% (185,000 sq. m), of the total office take-up in 2022. This marks an increase by more than 10%.

The prime headline rents have seen an upward movement in 2022, reaching a level between €19.00-21.00/ sq. m/ month, the highest in the last 14 years, as a result of the low pipeline and of the surging inflation.

SEE ALSO: 2020, one the poorest years in the last decade for the Bucharest office market

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