Bucharest office market heats up: Griffes secures key deals in Unirii View
The real estate consultancy Griffes has successfully facilitated the leasing of approximately 6,000 square meters of office space within Unirii View, a prominent Class A office building situated in the heart of Bucharest. These significant transactions saw approximately 2,000 square meters being secured by new companies entering the building, while existing tenants capitalized on the opportunity to expand their operations. The leased spaces cater primarily to firms operating within the robust business services and IT sectors, underscoring the strong demand from these industries.
This flurry of activity occurs within a market context defined by a rapidly diminishing availability of modern office spaces, particularly within Bucharest's highly coveted central areas.
Unprecedented scarcity: no new office deliveries for a full year
Andreea Păun, Managing Partner at Griffes, highlighted a critical development for the Bucharest office market: for the first time in nearly two decades, the city has gone an entire year without the delivery of any new office projects. This prolonged stagnation in new supply has created a significant imbalance between the available spaces and the persistent demand from tenants, intensifying competition for prime locations.
Historic low vacancy rates drive competition
The direct consequence of this supply-demand mismatch is evident in the vacancy rates. The rate of unoccupied spaces in Class A buildings within the central area has plummeted to an historic low of just 3%. Unirii View itself, known as the tallest office building in central Bucharest with a total leasable area of approximately 18,000 square meters, currently boasts a 100% occupancy rate, owned by the Belgian developer Weerts Group. Across Bucharest, the average office vacancy rate has dipped below 12%, with Class A central buildings seeing this figure drop to approximately 3% due to the acute absence of new deliveries.
Rising rents reflect premium value
Such tight market conditions naturally impact pricing. According to Griffes' estimates, rental levels for premium assets have seen an increase of approximately 5%. This trend further accentuates the growing disparity between high-performing, modern buildings and the older office stock, emphasizing the value placed on contemporary, well-located office environments.
What this means for businesses seeking office space in Bucharest
For businesses currently exploring office space options in Bucharest, these market dynamics underscore a critical need for proactive and strategic planning. The scarcity of available premium spaces, coupled with rising rents and historic low vacancy rates, means that securing ideal office locations requires swift decision-making and potentially longer lead times. Companies should be prepared for a competitive environment and consider leveraging real estate consultancy expertise to navigate the limited supply and secure suitable spaces that align with their growth objectives in this dynamic market.
Source: forbes.ro
