Office leasing activity in Bucharest nearly halved in the first quarter of 2018: the gross take-up in modern office spaces of over 68,000 sqm and net take-up of almost 38,000 sqm are a bit below the recent trend and in tune with our expectations of the market gradually cooling down over the medium term.
The highlights in terms of office leasing deals were a confidential 11,500 sqm transaction in Unirii and the 5,500 sqm UPC Romania deal at The Bridge.
Leasing activity is mirroring the growing attention from developers towards central areas, Center West or Piata Presei/Expozitiei at the expense of the established northern part of Bucharest.
With unemployment at all-time lows and major regional office markets in Romania rising in importance, we retain our view for new demand slowing in the Bucharest modern office market some 10% in 2018, to 135,000 sqm.
