Office leasing activity throughout H1 2021 has amounted to over 130,000 sq. m, a 17% increase compared to the same period of 2020.
Relocations and new business operations represented 61%, according to Avison Young.
Office occupiers’ appetite for opening new business operations in Bucharest has increased by 80% y-o-y, reaching the highest level recorded since the second half of 2019.
Avison Young’s experts predict that office supply is expected to exceed 200,000 sq. m in H2 2021, with the Central West submarket attracting 34% of the stock.
In terms of occupancy, almost two thirds of the offices scheduled for delivery by year’s end are already pre-leased.
New 80,000 sq. m. of offices
Throughout the first half of 2021, six office buildings have been finalized in Bucharest, having a total GLA of ~ 80,000 sq. m.
Most of the newly completed office supply is in Barbu Vacarescu – Floreasca submarket, followed by Central West and CBD.
The largest office buildings completed in H1 2021 are: One Floreasca Tower, Campus 6.2 and Țiriac Tower.
Overall, in 2021 new office supply could exceed 300,000 sq. m, boosting the modern office stock up to 3.5 million sq. m.
However, next year’s development pipeline is currently lower by 60%, with only 115,000 sq. m of offices planned for completion, Avison Young’s experts explain.
In terms of vacancy, at the end of Q2 2021 general office vacancy rate stands at 10.5%, being higher by 30 bps compared with Q1 2021.
Barbu Vacarescu – Floreasca has a vacancy rate around 7%, while in the Central West submarket office vacancy rate is close to 12%.
In the CBD the vacancy rate continues to stand close to 5%.