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Andrei Chirileasa
Editor-in-Chief

Andrei studied finance at the Bucharest Academy of Economic Studies and started his journalism career in 2004 with Ziarul Financiar, the leading financial newspaper in Romania, where he worked for ten years, the last six of which as editor of the capital markets section. He joined the Romania-Insider.com team in 2014 as editor and became Editor-in-Chief in 2016. He currently oversees the daily content published on Romania-Insider.com and likes to stay up to date with everything relevant in business, politics, and life in Romania. Andrei lives with his family in the countryside in Northern Romania, where he built their own house. In his free time, he studies horticulture and tends to his family’s garden. He enjoys foraging in the woods and long walks on the hills and valleys around his village. Email him for story ideas and interviews at andrei@romania-insider.com. 

 

Vacancy rate in Bucharest office market at 7-year high

The vacancy rate in the Bucharest office market has climbed to a 7-year high of 15.75% at the end of H1, up from 11.25% a year ago (and 10% mid-2019), according to a Colliers report.

The market is in a bit of a difficult spot, but the damage has not been even. Newer/more qualitative buildings tend to perform much better in terms of overall occupancy, thanks to their appeal as well as rock-solid tenant companies, quite a lot of which continue to expand.

The average net effective rent for Bucharest is probably some 10% lower than before the pandemic; this is mostly due to older and less qualitative buildings, which had to offer more incentives to attract or retain tenants than newer buildings.

The sublease stock (of at least 80,000 sqm by Colliers measurements, likely an underestimated figure), which offer good fitted-out alternatives for very attractive rents, pressure, even more, the less competitive office spaces.

Under these conditions, the contracted area in the first half of this year marks a slight decrease compared to the first half of 2020 when they were signed for 45,000 sqm.

(Photo: Pixabay)

andrei@romania-insider.com

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Profile picture for user andreich
Andrei Chirileasa
Editor-in-Chief

Andrei studied finance at the Bucharest Academy of Economic Studies and started his journalism career in 2004 with Ziarul Financiar, the leading financial newspaper in Romania, where he worked for ten years, the last six of which as editor of the capital markets section. He joined the Romania-Insider.com team in 2014 as editor and became Editor-in-Chief in 2016. He currently oversees the daily content published on Romania-Insider.com and likes to stay up to date with everything relevant in business, politics, and life in Romania. Andrei lives with his family in the countryside in Northern Romania, where he built their own house. In his free time, he studies horticulture and tends to his family’s garden. He enjoys foraging in the woods and long walks on the hills and valleys around his village. Email him for story ideas and interviews at andrei@romania-insider.com. 

 

Vacancy rate in Bucharest office market at 7-year high

The vacancy rate in the Bucharest office market has climbed to a 7-year high of 15.75% at the end of H1, up from 11.25% a year ago (and 10% mid-2019), according to a Colliers report.

The market is in a bit of a difficult spot, but the damage has not been even. Newer/more qualitative buildings tend to perform much better in terms of overall occupancy, thanks to their appeal as well as rock-solid tenant companies, quite a lot of which continue to expand.

The average net effective rent for Bucharest is probably some 10% lower than before the pandemic; this is mostly due to older and less qualitative buildings, which had to offer more incentives to attract or retain tenants than newer buildings.

The sublease stock (of at least 80,000 sqm by Colliers measurements, likely an underestimated figure), which offer good fitted-out alternatives for very attractive rents, pressure, even more, the less competitive office spaces.

Under these conditions, the contracted area in the first half of this year marks a slight decrease compared to the first half of 2020 when they were signed for 45,000 sqm.

(Photo: Pixabay)

andrei@romania-insider.com

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