DTZ: Office demand outside Bucharest to reach highest-ever volume
In 2015 the volume of pre-leasing in the main regional cities was three times higher than the previous year, states a new release from DTZ Echinox.
In 2015 new deliveries in major regional cities have reached the highest level ever recorded. And the demand for offices outside Bucharest 2016 is projected to reach the highest level ever recorded, also says the study.
"By the end of 2017, the stock of modern offices in major regional cities could reach about 800,000 sqm," says Madalina Cojocaru, partner, DTZ Echinox.
In 2015 deliveries of new space in major regional cities have reached the highest level ever recorded. At the end of the year, total stock of modern office space in Cluj, Timisoara, Iasi and Brasov was 20% higher than the previous year. During 2016 - 2017, the deliveries of modern office spaces in major regional cities is estimated to exceed 210,000 sqm.
In 2015, the total demand for office space in the main regional cities was 25% higher compared to 2014 and was generated mainly by companies in the technology sector and telecommunications, followed by companies in the sectors of finance and manufacturing / industrial fields.
The volume of pre-leasing of the main regional cities was three times higher in 2015 than the previous year and the largest transaction recorded was one pre-lease; In the first half of this year, total demand for office space has reached a level similar to that recorded in 2015 and for the full year 2016 is expected to reach a record high.
The 2015 new deliveries in major regional cities exceeded 90,000 square meters and reached the highest level ever recorded. Late last year, modern office stock in Cluj, Timisoara, Iasi and Brasov was 20% higher than the previous year and add up to 584 000 square meters.
The 2015 demand for office space in all major regional cities was 25% higher than the previous year and totaled approximately 70,000 sqm. Net demand accounted for 90% of total demand, totaling approximately 60,000 sqm and trading was divided between new request (80%) and relocations in the stock Class A and B.
Pre-lease activity was improved significantly in 2015. Compared to 2014 preleasing volume was three times greater (25,500 sqm). Also, the largest office transaction outside Bucharest ended last year was a pre-lease transaction.
Of the total office space traded in 2015, 35% was done Iasi. This was followed by Cluj-Napoca - 23%, Timisoara and Brasov (22% and respectively, 20%).
Companies in technology and telecommunication sectors continued to generate the most requests (75% of the traded), followed by companies in the financial (10%) and manufacturing / industrial fields (8%).
"This year, the office market in the main regional cities will exceed the results recorded in 2015. Trading activity in the first half of the year and the deliveries announced for 2016 to 2017 shows that the largest office markets outside the capital are attractive both for developers and for office tenants," Madalina Cojocaru.