Private medical networks emerge as key tenants in Bucharest office buildings, analysis says

The private medical sector is also making waves in real estate, according to an analysis by iO Partners, which says that major chains of private clinics and hospitals in Bucharest currently occupy spaces totaling over 215,000 sqm. About 40% of this area, equivalent to 86,000 sqm, comprises spaces leased in modern office buildings, often strategically situated near major office hubs in northern, central, and western Bucharest.

The remaining spaces used by the private medical sector, roughly 130,000 sqm, are leased either in non-competitive market buildings or buildings owned directly by medical operators, the same source said. The competitive market includes leased office buildings of class A and B, with a minimum leasable area of 2,000 sqm, delivered since early 2000.

Maria Florea, Head of Office Advisory at iO Partners Romania, commented: “Private clinics and hospitals have become an integral part of the office space market, though they come with specific and complex requirements compared to typical office tenants. Not every space is suitable for such services, so a thorough analysis is necessary before making any decisions.”

Over the past two years, the private medical sector has leased over 40,000 sqm in modern office buildings in Bucharest, meaning that it now represents about 2.5% of the total modern office space available in the capital city, roughly 3.4 million sqm.

According to the real estate services company iO Partners, there is still significant potential for expanding or relocating private medical clinics to higher-quality spaces or more strategically located premises. Many areas in Bucharest, particularly major residential neighborhoods and certain office areas, still lack sufficient private medical facilities.

At the same time, there is room for expansion in regional and medium-sized cities across Romania.

“Private medical service operators seek to position their spaces near the main office areas of the city, as these areas provide them with a steady and consistent flow of customers,” noted Alexandru David, Head of Research at iO Partners Romania.

According to analyses conducted by his department, the top preferences of medical operators include the office areas of Dimitrie Pompeiu (31% of the area occupied by medical operators), the Central Business District (21%), Floreasca-Barbu Văcărescu (18%), and the Center-West (14%).

(Photo source: the company)