Demand for office spaces in Bucharest up 18% y/y in 2019, JLL study shows

Companies have rented almost 390,000 square meters (sqm) of office space in Bucharest last year, 16% more compared to 2018, reveals a market analysis published on Thursday by real estate consultancy firm JLL.

According to JLL data, the largest office areas in Bucharest were rented in the Central Business District (CBD, 17.4% of total demand), in the central area (15.1%), Center - West (14.9%), North - Expozitiei (14.6%), and Floreasca - Barbu Văcărescu (11.4%).

Moreover, the vacancy rate in the modern office buildings in Bucharest has declined slightly to about 8% at the end of December, from 8.64% one quarter earlier, amid the increase in demand during the fourth quarter (107,000 square meters, of which over 80% net demand as opposed to renewals), and scarce supply (a single new building completed).

The highest vacancy rate was still in Pipera - North, with almost 40%, followed by the East (16%) and Baneasa - Otopeni (slightly over 14%). At the opposite end, the lowest vacancy rates, at the end of last year, were registered in the Center (1.1%), the West (2.1%) and Floreasca - Barbu Văcărescu (2.5%).

At national level, almost 470,000 square meters of office space were rented last year, of which the net demand (new contracts and extensions of the already contracted areas), had the largest share. Total demand increased by 18%, compared to 2018 when a level of 400,000 square meters was recorded. Bucharest attracted almost 83% of the total demand for office spaces, followed by Cluj-Napoca (6.5%), Timisoara (4.4%), and Iasi (3.2%).

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