Romania's dynamic office market: key insights for businesses

 

Romania's commercial real estate sector is a vibrant landscape, with the country's largest office occupiers cumulatively investing over €260 million annually in modern office spaces. This extensive footprint covers close to 1.1 million square meters across Bucharest and major regional hubs including Iași, Cluj-Napoca, Brașov, and Timișoara. An analysis by Cushman & Wakefield Echinox, focusing on 76 companies each occupying over 4,000 square meters, reveals a mature market where strategic office presence is a key operational component.

 

Understanding office occupancy costs in Romania

 

For businesses considering their footprint in Romania, the financial implications of office space are highly favorable. Despite the substantial cumulative investment, office occupancy costs represent less than 1% of the €41.1 billion combined turnover generated by these companies in 2024. This efficiency is further highlighted by the breakdown: for 53% of the analyzed companies, office costs account for up to 2% of their turnover, while for another 31%, costs range between 2% and 5%. This data points to a market where securing premium office space is a strategic investment that remains well-aligned with business revenues.

 

Moreover, the cost per employee for these leading firms stands at approximately €180 per month, supporting roughly 120,000 individuals across their rented offices. This benchmark provides valuable insight for companies planning their budget and workforce distribution.

 

Sector-specific office demand and investment

 

The demand for office space in Romania is diverse, yet certain sectors lead the way:

 

IT&C sector dominance

 

The Information Technology & Communications (IT&C) sector is a powerhouse in the Romanian office market. It accounts for a significant 44% of the largest tenants, occupying 540,000 square meters and contributing €130 million annually to office rent. This highlights Romania's strong appeal as a tech hub and the IT&C sector's continued expansion.

 

Financial services & telecom contribution

 

Financial firms represent 11% of the major tenants, holding 180,000 square meters of office space and investing €50 million yearly. Telecom operators also play a notable role, making up 5% of tenants, occupying 47,000 square meters, and spending just under €14 million annually. These figures underscore the broad spectrum of industries finding strategic value in Romania's office real estate market.

 

Why Romania is an attractive office destination

 

The insights from this analysis paint a clear picture: Romania offers a dynamic and relatively cost-efficient environment for businesses seeking modern office spaces. Whether driven by the booming IT&C sector, robust financial services, or expanding telecom operations, companies can find high-quality office solutions that align with their operational strategies and financial benchmarks. The market's scale and the manageable cost-to-revenue ratios make it an compelling location for new investments and business expansion.

 

Source: moneybuzz.ro