IT&C and computer companies were the most active on the office space rental market in Bucharest, generating over 40% of demand in the first half of this year, followed by the banking and financial sector, with 25% of the area contracted and by medical and pharmaceutical companies, with about 9% of total take-up.
In the first half of the year, the office space rented in Bucharest totalled approximately 100,000 square meters, of which IT&C and computer companies contracted about 40,000 square meters, banking and finance – 28,000 square meters, and pharma companies rented over 8,500 square meters.
Thus, after almost 50% reduction in Q1 2020 compared to Q4 2019, the decline in office demand in Bucharest continued during Q2, albeit at much lower rate of 19% when compared to the previous quarter.
Total gross transaction volume reached approx. 44,500 m² in Q2 and almost 100,000 m² in H1 2020.
Compared to the first half of last year, demand fell by half due to the COVID-19 crisis. The average transaction size in Q2 2020 was approx. 1,400 m².
Net take up accounted for 16,000 m², or 36% of gross take up during the period. Compared with net take up in Q1 2019, it stood at little over 33%.
JLL was the market leader in Bucharest, with over 36% market share in the first half of the year in terms of transactions intermediated.
In terms of vacancy rate, Q2 experienced a slight increase, from 8.7% in Q1, to approximately 9.3%.
Vacancy rate in the different sub-markets in Bucharest
| Sub-market | Stock (m²) | Average rent (Euro/m²/mth) | Vacancy % |
| 1. CBD | 320,400 | 16 – 18.5 | 4.7 |
| 2. Center | 342,000 | 15 – 17 | 6.5 |
| 3. Dimitrie Pompeiu | 440,700 | 12 – 14 | 8.8 |
| 4. Floreasca – BV | 520,200 | 15 – 16 | 4.8 |
| 5. Center – West | 439,700 | 14 – 16 | 13.3 |
| 6. East | 51,100 | 12 – 14 | 18.1 |
| 7. South | 41,800 | 10 – 12 | 0 |
| 8. West | 157,900 | 10 – 13 | 0 |
| 9. North – West (Expozitiei) | 222,800 | 15 – 17 | 6.5 |
| 10. Baneasa – Otopeni | 159,800 | 15 – 17 | 8.2 |
| 11. Pipera North | 210,500 | 11 – 13 | 35.9 |
| TOTAL | 2,906,900 | 9.3 |
About 214,000 square meters of offices will be delivered in 2020 in Bucharest, so that the modern stock will exceed 3 million square meters
After strong deliveries of 78,200 m² during Q1 2020, the pace slowed down in Q2 and the office buildings completed during the period added 27,900 m² to the modern office stock in Bucharest.
The projects delivered in Q2 include The Bridge phase 3 in the Center-West sub-market with approx. 21,200 m² GLA, and the Zone 313 in the Floreasca-Barbu Vacarescu sub-market, adding 6,700 m² GLA.
Deliveries in Q2 2020 represent approximately 33% of the volume recorded in Q2 2019, when 85,500 m² were added to the market.
Several important deliveries are waited for the second half of 2020, totaling 108,000 m². Thus this year the modern stock would increase by 214,000 m², exceeding the milestone of 3 million m² in Bucharest.
Among these the largest are Globalworth Square with 25,700 m², and One Tower, adding 23,600 m², both situated in the Floreasca – Barbu Vacarescu sub-market, as well as the second and third buildings in Campus 6, adding another 36,900 m² to the Center – West sub-market.
Pipeline for 2020 (selection)
| Property | Submarket | Size (m²) | Developer |
| Globalworth Square | Floreasca – Barbu Vacarescu | 25,700 | Globalworth |
| One Tower | Floreasca-Barbu Vacarescu | 23,600 | One United Properties |
| Campus 6.2 & 6.3 | Center-West | 36,900 | Skanska |
| Matei Millo | Center | 9,700 | Forte Partners |
| Politehnica Business Tower | Center-West | 8,000 | Politehnica Business Tower |
| Mincu Offices | Center | 4,200 | Private local |