The demand for office space in Bucharest is high and the vacancy rate of only 8.4% shows the need for more office projects in the capital, according to real estate consultancy firm CBRE.

The company estimates that the total modern office space in Bucharest will reach some 2.85 million sqm at the end of June, with 28,000 sqm delivered in the first quarter and 64,000 sqm to be finalized this quarter.

According to CBRE estimates, in the next three years, over 900,000 sqm of new office space will be delivered in Bucharest, including about 185,000 sqm to be delivered this year and 350,000 sqm in 2019.

“At the moment, if a company wanted to lease office space for 200 employees in a building close to a subway station, it may not find it. Identifying optimum space takes at least 12 months but it’s ideal to have 24 months for this,” said Mihai Paduroiu, Head of Advisory & Transaction Services – Office at CBRE Romania.

In the first quarter, 52 office leasing transactions were closed, totaling some 65,500 sqm of office space. Relocations accounted for 36% of the demand while pre-leases represented 34%.

The average rent remained unchanged at some EUR 18.5 per sqm per month, according to CBRE data.

Office rental activity slows down in Romanian capital

editor@romania-insider.com