Net take-up of office spaces in Bucharest amounted almost 80,000 sqm in the first half of the year, which means an additional 10,000 jobs, considering that companies usually allocate for each employee 8 square meters.
In total, gross take-up reached in this period of time 185,000 sqm, a small decrease when compared to first 6 month of last year (192,000 sqm).
Development activity remains low, with only 43,000 sqm of new office spaces delivered in Q1 and Q2 of 2017, out of 140,000 sqm that developers have planned to finalise by the end of the year. Total demand exceeded the new offer over 4 times.
The largest project delivered this year was Timpuri Noi Square, developed by Vastint in the South part of Bucharest, with an area of 33,000 sqm.
The current modern stock is of over 2.43 million sqm, and due to continued strong take-up and limited new supply, the H1 vacancy rate decreased to 9%, the lower level after the financial crises.
”Romania continues to be attractive for the investors - existing and new comers – which are planning to expand their businesses in Bucharest and also in the largest cities in the country. In the first half of this year, over 60 companies have leased new spaces for their businesses in Bucharest and other 40 have renewed their leasing contracts. This true of the confidence that investors have in the local market”, comments Marius Șcuta, Head of Office Agency and Tenant Representation JLL Romania.
Depending on the area, a quarter of the leasing contract signed in this period was for the offices located in Floreasca-Barbu Vacarescu area, followed by CBD (Piața Victoriei – Piața Charles de Gaulles) and West and Center-West areas.
The largest office lease agreements concluded in H1 in Bucharest:
PC Center II
Casa de Asigurari de Sanatate a Municipiului Bucuresti
Timpuri Noi Square
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. A Fortune 500 company, JLL helps real estate owners, occupiers and investors achieve their business ambitions. In 2016, JLL had revenue of $6.8 billion and fee revenue of $5.8 billion and, on behalf of clients, managed 4.4 billion square feet, or 409 million square meters, and completed sales acquisitions and finance transactions of approximately $136 billion. At year-end 2016, JLL had nearly 300 corporate offices, operations in over 80 countries and a global workforce of more than 77,000. As of December 31, 2016, LaSalle Investment Management has $60.1 billion of real estate under asset management. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit www.jll.com.
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