Almost 500,000 sqm of offices scheduled for delivery in the next 16 months

The office market in Bucharest and in the major regional cities - Cluj-Napoca, Timișoara, Iași and Brașov - continues to develop, with local and foreign investors having projects under construction or scheduled for delivery with an area of approximately 500,000 square meters that will be put into use in the next 16 months, according to Bucharest Office Market and Office Regional Cities Reports, realised by the real estate consulting company Cushman & Wakefield Echinox.

The most active market remains Bucharest, with projects of about 340,000 square meters scheduled for delivery by the end of 2021, followed by Timişoara (80,000 square meters), Cluj-Napoca (36,000 square meters) and Braşov (25,000 square meters).

The most active developers in terms of surfaces scheduled to be delivered in the next period are One United (94,000 sqm), Iulius Group (60,000 sqm), Portland Trust (45,000 sqm) and Forte Partners (41,000 sqm).

At the end of the first semester, the modern office stock in Bucharest was about 2.9 million square meters leasable area, without taking into account the buildings occupied directly by the owners, while the stock in regional cities was approaching the 1 million square meters threshold, the largest markets being Cluj-Napoca (347,000 sqm), Timişoara (245,000 sqm) and Iaşi (226,000 sqm).

The medical crisis caused by the Covid-19 pandemic significantly influenced the use of office spaces, with companies adopting various methods to protect their employees, but it had a lower impact on the space occupancy, as most companies are still analyzing the best medium and long term solutions to carry on their activity. Thus, the vacancy rate varies from 10.3% in Bucharest, with values of 4.7% in Floreasca - Barbu Văcărescu and 7.4% in CBD, to 5.6% in Cluj-Napoca or 5.7% in Braşov.

"The need for modern, qualitative constructions in attractive locations will not disappear given the Covid-19 pandemic, whether we talk about office, residential or commercial spaces" says Mădălina Cojocaru, Partner, Office Agency, Cushman & Wakefield Echinox. The developers, banks and investors understand that is all about the rethinking of how office spaces will be used, not the lack of need for such spaces, which is why the activity on all large construction sites has continued at a steady pace, both in Bucharest and in the country. A sign of confidence in the potential of the local office market is also given by the fact that developers such as Speedwell or Iulius Group started building new projects during this period, in Bucharest and Timişoara, and in Iasi respectively, while banks continue to finance this sector, and the transaction market has remained active” added Mădălina Cojocaru.

The prime headline rents remained stable, at a level of 19 euro / sqm / month in Bucharest and 15 euro / sqm / month in Cluj-Napoca or Timişoara, after a long period in which the competition between developers kept the local market rents at a competitive level compared to similar cities in Central and Eastern Europe.

The most important office projects to be delivered in regional cities (S2 2020 - 2021)

City

Project

GLA (sq m)

Developer

Delivery

Timişoara

UBC 0

55,000

Iulius Group

2021

Timişoara

ISHO III

17,000

Mulberry Development

2021

Timişoara

Romcapital Center II

8,500

Altus

2020/2021

Cluj-Napoca

Banca Transilvania HQ

16,000

Banca Transilvania

2021

Cluj-Napoca

Record Park

11,500

Speedwell

2020

Cluj-Napoca

Cluj BC (phase III)

8,700

Felinvest

2020

Braşov

AFI Park Brasov I

15,000

AFI Europe

2020

Braşov

Coresi Business Campus U1

10,500

Ceetrus – Ascenta

2021

Iaşi

United Business Center 8

5,100

Iulius Group

2020

TOTAL


147,300



Source: Cushman & Wakefield Echinox

The most important office projects to be delivered in Bucharest (S2 2020 - 2021)

Area

Project

GLA (sq m)

Developer

Delivery

Central - West

One Cotroceni Park I

45,000

One United

2021

Central - West

Campus 6 II & III

41,000

Skanska

2020

Central - West

Sema Londra & Oslo

31,500

River Development

2021

Floreasca – Barbu Văcărescu

Globalworth Square

28,000

Globalworth

2020

Floreasca – Barbu Văcărescu

One Tower

24,000

One United

2020

Floreasca – Barbu Văcărescu

One Verdi Park

24,800

One United

2021

Nord – West (Expoziţiei)

J8 Office Park

45,000

Portland Trust

2021

Central

U-Center

32,000

Forte Partners

2021

Central

Matei Millo Offices

9,100

Forte Partners

2021

CBD

Ţiriac Tower

16,500

Ţiriac Imobiliare

2021

CBD

Dacia One

15,800

Atenor Group

2021

TOTAL


312.700



Source: Cushman & Wakefield Echinox



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