Bucharest office market registered a steady return of demand in Q4 2020

In the last quarter of 2020, in Bucharest there were transactions of office spaces with a total area of ​​77,000 square meters, the highest quarterly value of the year.

The annual volume of transactions reached approximately 237,000 meters squares, according to Cushman & Wakefield Echinox.

Compared to the previous year, the transactional office area decreased by 39%, while the share of renewal contracts increased from 21% to 45%.

The most important office project completed in the last quarter of 2020 was One Tower, with a leasable area of ​​24,000 square meters, part of the mixed project One Floreasca City, the total deliveries of new office spaces in 2020 totaling 155,000 square meters, a decrease of 46% compared to 2019.

The commercial stock (destined for lease) of office buildings in Bucharest amounts to approximately 2.95 million square meters, other buildings with an area of ​​approximately 150,000 square meters being occupied by the owners, while projects with a total area of 350,000 square meters are currently under construction, being scheduled for delivery between 2021-2022.

In this context, the (contractual) vacancy rate of office spaces is 12.5%, with a significant difference between class A (9.7%) and class B (20.7%) spaces.

The most important office projects under construction are One Cotroceni Park, J8 Office Park, Globalworth Square, U Center, Miro Offices, Ţiriac Tower, Dacia One, Millo Offices, Expo or Sema London & Oslo, the developers having signed pre-lease contracts for about 60% of the spaces.

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