Q3 2021, best ever in terms of new supply for Bucharest office market

In Q3 2021, new deliveries totaling 132,200 sq. m of office spaces have been completed in Bucharest, the best quarter ever in terms of supply.

Thus, the total new supply in the first 9 months of the year is around 178,000 sq. m, according to Cushman & Wakefield Echinox.

The new supply of office spaces during January-September 2021 was even higher than the level registered during the entire 2020, when the new supply accounted for 155,000 sq. m.

The most relevant new office deliveries were J8 Office Park (46,000 sq. m GLA), U-Center I (32,800 sq. m GLA), Globalworth Square (29,100 sq. m GLA) and Dacia One (16,300 sq. m GLA).

As such, the office stock in Bucharest has reached 3.13 million sq. m (excluding owner-occupier buildings), while the vacancy rate recorded an increase towards the 14.8% level.

A significant gap remains in regards to the vacancy rates for A and B class office buildings, with A class properties recording a level of 12.1%, compared with 23.4% in B-class buildings.

The leasing activity has significantly picked-up the pace during summer, with 93,900 sq.m contracted in Q3 2021.

Thus, the total for the first 9 months of the year is at 212,900 sq. m, an increase of 33% when compared with the same period of last year.

Tenants from the T&T and Medical sectors remained highly active in Q3, having a combined share of 41% from the total transactional volume.

Presently, there are new office buildings under construction and expected to be delivered in the following 18-24 months totaling around 280,000 sq. m GLA.

However, the new supply will gradually reduce, since the pipeline for 2022 (138,000 sq. m) is only slightly higher than the Q3 2021 completions.

The most significant projects under construction are One Cotroceni Park (phases I & II), Expo by Atenor, Sema Parc, AFI Tech Park II and Equilibrium II.

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