The Bucharest office market has shown early signs of recovery, driven by a visible increase in pre-lease transactions, highlighting a renewed occupier appetite for future office spaces. The current development pipeline, exceeding 215,600 sq.m, the highest level in recent years, is expected to be gradually absorbed, according to data from the Cushman & Wakefield Echinox real estate consultancy company.

In the first quarter of the year, the total leasing activity reached 49,100 sqm, with pre-lease transactions accounting for approximately 25% of the volume. These contracts relate to projects scheduled for delivery over the next 1-2 years, according to the Bucharest Office Marketbeat Q1 2026 report.

The same data shows that two of the top five deals signed in Q1 2026 were pre-lease agreements. Pre-lease agreements are increasingly being used as a strategic instrument, enabling developers to mitigate risks while securing higher occupancy levels ahead of delivery. 

Moreover, 83% of the leasing activity recorded in Q1 consisted of net take-up, marking the highest share in the post-pandemic period and indicating that companies continue to expand or relocate despite the challenging economic backdrop. The overall vacancy rate continued its downward trend, reaching 12%, compared to 13.6% in Q1 2025, supported by the lack of new deliveries and the steady absorption of existing stock.

The total modern office stock remained stable at approximately 3.43 million sq. m, as no new projects were delivered during the first quarter. Looking ahead, the market will be further supported by a substantial development pipeline, with over 215,000 sq. m currently under construction. Around a quarter of this volume is expected to be delivered by the end of 2026. 

Major projects under development include Timpuri Noi Square II (60,000 sq. m), ARC Project (30,000 sq. m), AFI Central Tower (28,000 sq. m), Queens District (23,000 sq. m), and One Technology District (20,600 sq. m). These developments are set to further consolidate Bucharest’s main office hubs like the Floreasca-Barbu Vacarescu and Center-West areas, while the Center submarket is on track to become the third one to exceed 500,000 sq. m of office spaces.

Vacancy rates also reflect a strong polarization across submarkets. Prime CBD locations (the area between Charles de Gaulle Square and Dacia Boulevard) report the lowest rate (3% - 4%), while Pipera North records the share of vacant spaces (36.6%), albeit offering some of the most competitive prime headline rents (EUR 9 – 11/ sq. m/ month).

Ongoing infrastructure works in the Pipera area initiated this year are expected to address accessibility constraints, one of the key factors behind elevated vacancy levels, potentially leading to improved occupancy in the medium term.

Central and semi-central locations, such as Floreasca-Barbu Vacarescu and Center-West, continue to dominate leasing activity, accounting for more than 80% of the total transaction volume in Q1 2026. 

Prime rents remained stable in the CBD at EUR 21-22/sq. m/month, while upward movements were recorded in central and semi-central areas, where rents now generally range between EUR 15 and EUR 20/sq. m/month. Peripheral locations continue to offer more competitive levels, between EUR 9 and EUR 13.5/sq. m/month.

“The increasing share of pre-lease transactions, alongside a robust development pipeline, signals a repositioning of the Bucharest office market towards a new growth cycle. With demand primarily driven by expansions and relocations, projects under construction have strong fundamentals for gradual absorption as occupier confidence improves and the economic environment stabilizes. Companies are no longer waiting for project completion but are proactively securing suitable spaces in advance,” said Mădălina Cojocaru, Partner Office Agency, Cushman & Wakefield Echinox.

radu@romania-insider.com

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