Companies leased 73,500 sqm of office space in Bucharest in the third quarter of this year, up 18% year-on-year, but most of this value comes from renegotiations and renewals.

The new demand for office space was 20,400 sqm, half compared to the same quarter of 2017, according to an analysis by real estate consultancy firm Colliers Romania.

In the first nine months, the gross take-up was 223,100 sqm, down 10% compared to the same period of last year, and the net demand was 103,700 sqm, down by 18%.

“In tune with Colliers’ estimates, leasing activity is softening to more normal levels following an excellent 2017,” reads the firm’s report.

Moreover, 20% of the new demand came from co-working space operators, adding to the sensation of sluggishness in the office market as this part of the new demand is not linked to employment growth.

“By local standards, the labor market is at its tightest in the post-crisis cycle, but still has a lot of slack compared to regional peers, suggesting office stock can still expand in the long run, albeit at a slower pace,” according to Colliers.

On the supply side, deliveries of modern office space reached 83,000 sqm in the third quarter after going down to only 33,000 sqm in the first half of this year.

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editor@romania-insider.com