Trading activity in the office market slowed in the third quarter of this year, mirroring trends from 2021-2022. The overall vacancy rate remains around 15% in Bucharest, according to Colliers data.
Total demand for modern leased office space in Bucharest dropped by 25% to 236,000 square meters compared to the same period in 2023. New lease demand reached 82,000 square meters, reflecting an 11% decrease year-on-year.
This year will mark three consecutive quarters without any new modern office completions, the longest period without deliveries since 2005. The only project confirmed for delivery in the next two years is the 16,000-square-metre AFI Loft, expected to be completed later this year.
Although there have been a few larger deals this year, the average size of a recorded transaction is under 1,400 square metres, below the 10-year average of nearly 1,500 square metres per year.
In the last two years, renewals have made up a larger-than-usual share of demand. In Bucharest, renewals have accounted for up to 50% of signed lease transactions.