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Most companies continue to hire people and expect to get in a better shape during 2021

The perception is different regarding the recovery of the real estate market and overall economy

Nearly three-quarters of landlords and tenants in the office market believe that the Covid-19 epidemics will continue to affect their operations and the overall business evolution will become satisfactory either in the second half of 2021 or in 2022, according to a survey conducted by Colliers International among more than 100 tenants and landlords on the Romanian office market. While most tenants expect that at least 50% of their employees will return to the office by the middle of next year, landlords are also expecting a medium term impact, with the majority looking for the demand pipeline to be at least 10% lower than it was in recent years.

About 42% of tenants are dealing with negative or somewhat negative impact on their business due to Covid-19, according to Colliers International’s survey among tenants. In this context, half of the respondents had less than 10% of employees in the office in September, with another third having between 10% and 50% of the team in the office. The share of big companies, employing over 500 employees, with less than 10% of their workforce in the office is greater than the share of smaller companies with the same levels of presence in the workplace – 63% versus nearly 43%, skewing the impact on occupancy, and the impression that people are not back in the office.

A bigger part of the respondents are moving forward with their hiring plans, and only a small fraction of the companies are currently firing people or plan to do so. Furthermore, quite a lot have delayed their plans for up to one year and will likely move ahead if their economic activity continues perking up.

Going forward, most companies are either keeping their occupied office surface unchanged or are looking for a moderate decrease, between 10 and 30% and these are fairly equal shares. Still, we note that big employers are more likely to cut back their occupied office space in the future versus smaller ones, thus more sublease spaces would be available. That said, there is still a lot of uncertainty, so the future way of working is yet to be established, with most companies likely planning to pursue a hybrid system accommodating both remote work and office work”, says Sebastian Dragomir, Partner and Head of Office Advisory at Colliers International.

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Sebastian Dragomir

Partner | Head of Office 360

Bucharest

Achieved over 16  years of experience in Real Estate, including management of Landlord Rep Department in CBRE, Head of EHL Romania Office & Industrial Department, and Senior Leasing Manager and Marketing Coordinator within IMMOFINANZ Romania, dealing both with Industrial and Office portfolio in Romania and Bulgaria. 

Currently, managing the activity of Office 360 team in Colliers. 

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Daniela Popescu

Associate Director | Tenant Services & Workplace Advisory

Bucharest

Daniela joined Colliers International in 2005 in the Residential Department and moved to the Consulting Division early in 2006. 

She proved to have excellent research and analytical skills and she specialized in the residential segment. 

After 6 years of involvement in consultancy, in 2012, she has been appointed as Head of Research. At the moment she coordinates the research activities within Colliers International Romania being involved in various analyses, reports and forecasts conducted on the Romanian real estate market.

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Silviu Pop

Head of Research | Romania

Bucharest

Before joining Colliers mid-2017 as Head of Research for Romania, Silviu Pop worked with ING Bank for close to three years as an economist, covering macroeconomic/financial market themes for Romania, Bulgaria, Serbia and Croatia. His previous professional experience includes working almost 7 years as a financial journalist at various media outlets in Romania, including the sole business-oriented TV station in Romania, where he hosted a daily show for a period of time; during this interval,  he won a number of scholarships, including a stint with Reuters. He holds a BSc in economics at the Bucharest University of Economic Studies.

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