Bucharest, November 07th, 2012 – Average vacancy rate for Bucharest remained stable in the third quarter of 2012, but differences registered between sub-market rates illustrate that competition between office buildings located in central and semi-central areas will increase in the following period – according to Colliers International Romania’s recently published quarterly market update.
The available stock analysis reveals a constant vacancy rate in the last three months, at approx. 17.5%. The actual vacancy rate is 1-2% higher due to the spaces available for sublease.
The vacancy examination conducted per sub-market illustrates significant differences between vacancy rates, from 3% in Floreasca to more than 50% in Pipera. While for the Semi-Center and the Peripheral areas there were slight increases, the vacancy rate in the CBD went down as a direct consequence of the increased number of transactions in this area, 30% of the net take-up being in offices located in CBD. The available spaces in Victoriei – Charles de Gaulle represent 23% of the entire office stock in the area.
In addition to the study’s findings, Viorel Opait, Corporate Services Director of Colliers International Romania, states: “In the following period, competition will intensify in Floreasca – Barbu Vacarescu area, as the projects commenced during the summer will start or started the pre-leasing process. Most of these developments are scheduled for delivery in 2013 – 2015, at a time when the contracts of most of companies in the area will come to completion.”
STOCK & AVAILABLE SPACES* BY SUB-MARKET
* Vacant and spaces available for sub-lease included
At the end of September 2012, total Class A office stock in Bucharest reached 1,540,000 m2. New office supply totalled 20,000 m2, comprised in the first construction phase of AFI Business Park and two small buildings (Aviatorilor 47 and Monolit Square).
Tenants who signed spaces in Q3 2012 obtained slightly lower effective rates, as the owners were keen on to offer incentives in order to maintain the headline rents stable.
The entire leasing activity in the third quarter of 2012 accounted for 35,000 m2, out of which around 28,000 m2 represent net take-up. This is translated into a nine month net take-up of approx. 93,000 m2 and a pre-leasing activity that generated 40% of these.