Compared to the similar period of last year, the registered growth is 223%.
CBRE has revised in 3Q the modern office stock to 2,100,000 sq. m from 2,230,000 sq. m, including 768,000 sq. m A class offices (41 buildings) and 1,333,000 sq. m B class offices (183 buildings).
3Q saw only one office building delivery, a small central building with 1,300 sq. m area. The analysts estimate 168,500 sq. m total office delivery volume in 2013 (including the announced deliveries of 4Q).
In Bucharest there are approx. 184,000 sq. m in construction, scheduled for delivery between 4Q 2013 – 2Q 2014, with another at least 600,000 sq. m in various stages of development.
The construction of these projects depends on certain levels of pre-leases, in order to obtain the financing so difficult to obtain after 2008.
„Tenants’ request for two types of area registered an increase: average – under 1,000 sq. m and very large – over 4,000 sq. m. This quarter only there were five tenants signing leases for over 4,000 sq. m. We estimate the market will be divided between this two segments of tenants in the near future”, said Razvan Iorgu, general manager CBRE Romania.
This quarter the request represented only 51% of the total transactions volume, being an indicator of the intensification of the renegotiation and renewal activities in the last period.
An important aspect for this quarter is represented by the signing of five pre-leases for an average area of 1,000 sq. m, within buildings in construction. However those transactions are not a trend, as only 8,700 sq. m were pre-leased since the beginning of the year.
The areas CBD (business district) and Central have attracted most of the requests (approx. 34% of the total request), while the Northern and Pipera areas were dominated by renewals and renegotiations (90% of the total renewals and renegotiations). Pipera attracted 47% of the total rental activity, followed by the Northern area, with 26%. This is not unexpected, as those areas host over 54% of the total stock in Bucharest.
The vacancy rate varies depending on the buildings’ class: 10.3% - A class, 18.3% - B class and 19.2% - C class. Moreover, the vacancy rates depend on the zone, with Western registering 6.6% and Pipera over 21.5%.
Both prime rents and prime yields remained stable as in the previous quarters: 18 EUR/sq. m/month nad 8.25% respectively. The net rent, taking into account all the possible incentives granted by the owner to the tenants, is estimated at 92%-94% of the asked prime rent.
“Outside Bucharest, the office market is extremely active, with over 12,000 sq. m transactions in Timisoara, Iasi and Cluj Napoca since the beginning of the year. We estimate a substantial growth of the interest of the tenants for those main cities, on top of the office development/construction activity growth. Main cities in Romania become very attractive for the IT companies, not only for the back-office segment”, concluded the CBRE specialists. (source: dailybusiness.ro)