Office deliveries in Bucharest could break the 300,000 sqm threshold in 2019

High-frequency indicators suggest that the very near-term outlook remains largely good for the Bucharest office market, with demand still likely in line with the trend seen this economic cycle:

• the third quater saw a gross demand at 74,800 sqm;
• the net take-up is still down some 20% in the first three quarters of 2019, to 83,600 sqm;
• over 100,000 sqm of leasing transactions were generated by relocations from competitive stock in the first 9 months of the year;
• the vacancy rate remains in a market neutral-area of c.10%;
• some 66,000 sqm in new modern office buildings came online in the third quarter;
• there are big chances to break the 300,000 sqm threshold in terms of deliveries;
• the IT&C segment generated close to 58% of the total market demand;
• Center West accounted for almost 20% of gross take-up in the first three quarters of the year.