The first quarter of 2014 shows a positive evolution of the total transaction activity on the office market. Therefore, compared to the first two quarters in 2012 and 2013, the first quarter of this year registered an average growth of approx. 17%, according to the data of the real estate consultant Esop Consulting.
Preliminary data shows in the first three months were transacted in Bucharest 62,652 sq. m offices, compared to 53,893 sq. m in 2013.
"The results of the first quarter confirm the positive expectations for 2014. The increased transaction volume on the office market was mainly generated by the important transactions growth of the new offices (with approx. 43% compared to the first quarter of 2013), considering that the renwals have registered approx. 37% decrease", has declared Mirela Raicu, the corporate office division manager within Esop Consulting.
Therefore, the new office rentals in existing buildings have represented the largest market share, with a total of 24,784 sq. m, down from 32,511 sq. m, decrease recovered from the preleases (rentals in unfinished buildings), which have increased from 2,670 sq. m to 19,100 sq. m. At the same time, the expansions have totalized 7,400 sq. m, compared to 600 sq. m in the first quarter of 2013.
The contract renewals have registered a total volume of 11,400 sq. m compared to 18,111 sq. m in 2013, year that marked the termination of a significant number of leases.
"We believe there are also favourable preconditions of a positive evolution of the transaction activity in the following three quarters. In the second half of the year we expect to register a relative decrease of the office premises with attractive quality/price ratio. There will be viable solutions though, as available office premises in the market have a consistent volume, but there will be significantly fewer", Raicu added.
Last year the office market totaled transactions of approx. 300,000 sq. m, with relocations, renegotiations and renewals representing over 80%. (sursa: wall-street.ro)