P&G's strategic relocation: a snapshot of Bucharest's evolving office market

 

Procter & Gamble (P&G), a leading producer of consumer goods, is making a significant move within Bucharest's office market. The company is relocating its approximately 700 employees from its current headquarters in Iride Business Park to Yunity Park, a development by Liviu Tudor.

 

This substantial transaction, encompassing 6,500 square meters of office space, stands out as one of the largest leasing agreements recorded in Bucharest this year.

 

The real estate consultancy firm IO Partners expertly mediated both the extension of P&G's previous lease and the new agreement in Yunity Park, with the transition expected to commence in a few years.

 

Demolition paves way for new development at Iride Business Park

 

The impetus behind P&G's relocation is a major redevelopment plan for its current site. The Iride Business Park buildings, where P&G's headquarters are located, are slated for demolition by their new owner, businessman Alin Niculae.

 

Earlier this year, Alfa Grup, owned by Alin Niculae, acquired nearly 60,000 square meters of buildings and 12.5 hectares of land from Immofinanz within Iride Business Park for a reported 44.7 million euros.

 

This acquisition is particularly noteworthy as it includes the potential for an additional 300,000 square meters of new office development, hinting at a significant transformation for the area and presenting vast opportunities for future businesses seeking modern office solutions.

 

Yunity Park: a premier destination for major corporations

 

P&G's new home, Yunity Park, is a testament to quality and strategic location. Developed by Liviu Tudor, the park is currently undergoing a 50 million euro renovation, ensuring state-of-the-art facilities for its tenants. It boasts an impressive 75,000 square meters of leasable space and 1,100 parking spots, catering to the needs of large enterprises.

 

Yunity Park has already attracted a robust roster of international tenants, including HP Inc Romania, Hewlett Packard Enterprise, DXC Technology, Infineon, Yokogawa, Luxoft, Sodexo, and Garanti, underscoring its appeal as a prime business hub. Both Yunity Park and the redeveloping Iride Business Park are strategically located near the Pipera metro station, offering excellent accessibility.

 

Bucharest office market: strong demand and sectoral growth

 

The P&G move is reflective of a dynamic and growing office market in Bucharest. In the first half of the year, companies in Bucharest contracted office spaces for over 7,000 employees, with new demand totaling 64,300 square meters. This robust activity highlights sustained interest in the city's commercial real estate.

 

The demand is diverse, with the IT&C sector leading the charge, accounting for 25% of new demand. Following closely are FMCG and retail at 17%, and the finance sector contributing 15% of the new office space requirements. These figures indicate a healthy and diversified economy driving the need for modern office environments.

 

What this means for businesses seeking office space in Bucharest

 

P&G's strategic relocation, coupled with the ambitious redevelopment plans for Iride Business Park and the strong performance of Yunity Park, underscores the vitality and potential of Bucharest's office leasing market.

 

For businesses looking to establish or expand their presence, this activity signals a market ripe with opportunities for new, high-quality, and strategically located office spaces.

 

The ongoing investments in renovation and new development, particularly in well-connected areas like Pipera, are creating a competitive and attractive landscape for corporations of all sizes.

 

Source: profit.ro