With two buildings completed in 2Q 2013, totalizing an area of approx. 7,800 sqm, the new office space offer finalized in the second term of 2013 reached approx. 80,000 sqm. According to a market study of Jones Lang LaSalle , the modern office stock mated to 2.04 million sqm, with 51% A class office spaces.
The office building CSDA Siriului, partly financed with EU funds was totally let prior to its completion, while another building in the centre Armand Calinescu Office Building has registered 50% occupancy rate at the completion of construction works.
The average un-occupancy rate is estimated at 15.6%, with a slight quarterly decrease, while the largest un-occupancy rates were registered in the North areas of the city, Baneasa and Pipera Nord, exceeding 355 for each of them.
In the second quarter of the year the total office rent activity was 59,000 sqm, the new request generating 49% of the rent activity, while the renewals attracted 35% of the total rented area. The rest of 16% from the total renting activity of the quarter was generated by extensions, sub-leases and pre-leases.
The entire rent activity in the second term is estimated at 123,000 sqm, similar to the one registered in the first six months of last year.
"Prime contractual office rents remain unchanged in the last 12 months, being considered EUR 18.5/ sm/ month. During the second quarter of 2013 a significant growth of the financial incentives was registered, both regarding the number of the rent free months granted and the financial contributions for the fit out works of the rented spaces. These are applicable to the lease agreements for areas larger than 2,000-3,000 sqm in completed buildings, while not long ago these incentives were granted mostly to important pre-lease contracts, with a decisive role in attracting financing and starting the construction works. Moreover we assist to a move towards a tenants’ market, an aspect which in our opinion will mark the office sector at least the following 12 months. ", says the analysis.
The offer for the second term was revised in decrease, reaching 40,000-50,000 sqm. The projects announced for the next two years, 2014-2015, totalize 180,000 – 200,000 sqm, with a quite large probability for some of works to postpone completion for 2015. Moreover, two business parks, developed in several phases, could start at any time further pre-leases signature.
"We estimate that the office takeover will be similar to the last two years, with an increase of the share of the pre-leases in the total office rent activity", the report also says. (source: wall-street.ro)