- Over 70,000 sqm of office space transactions closed in Bucharest and regional cities
- Most of the contract renewals extended the lease term for the same footprint
- Largest transactions in the market:
- 30,000 sqm Genpact renewal in Hermes Business Campus in Bucharest
- Over 8,000 sqm – the largest relocation of a technology company in Cluj-Napoca
- Estimated value of contracts of over € 65 mln.
- Value generated for the landlords of over € 160 mln.
Griffes, the leading real estate advisory firm, reports an outstanding performance in the first three quarters of 2024, marking a record year for the company, especially in the office leasing sector.
Griffes team advised on a total of over 70,000 sqm office space transactions this year, spread 80% in Bucharest and 20% in the geography of regional cities mostly Cluj-Napoca, renowned as “the technology and IT capital” of the country. Griffes’ portfolio covers both new leases (36%) and contract renewals (64%), providing unrivalled support for companies setting up new offices or consolidating their business, and constant guidance for businesses seeking to secure their premises and the financial stability in their renewal efforts.
So far, the total value of all office leasing deals signed by Griffes in 2024 is exceeding the € 65 mln. threshold, bolstered up by the long-term strategy of the occupiers who secured premises, (weighted average), for 6.8 years.
The renewal of Genpact’s 30,000 sqm lease at Hermes Business Campus in Bucharest is particularly noteworthy. This is the largest office deal in Romania for the past decade and reflects the continuity and the confidence of multinational companies in Romania’s business environment. Genpact’s decision to extend its lease not only shows a long-term commitment, but also underlines Griffes’ ability to structure large, complex agreements that meet the strategic needs of both tenants and landlords.
In Cluj-Napoca, Griffes team identified in Iulius Group portfolio a suitable space that shall foster growth, for the relocation and consolidation of an 8,000 sqm tenant. The company is a leading technology firm, and our efforts facilitated the largest new lease in Cluj-Napoca of the last 5 years. A solid, healthy take-up of this size also marks a critical milestone for the city’s growing tech hub, further contributing to the development of the regional office market and showcasing once again Cluj-Napoca as a prime destination for tech businesses.
Also in Cluj-Napoca, Griffes assisted the American company Copeland in the office opening for the newly launched operations, within Iulius group portfolio.
Griffes’ role in these transactions has played a notable part in the overall performance of Romania’s office market in 2024. Most contract renewals involved tenants choosing to extend their leases for the same office footprint, a trend that points out tenant satisfaction and the ongoing demand for well-located, high-quality office space. Griffes efforts to optimize leasing conditions have created over € 160 million in value for landlords, estimated by an average exit yield of 7%, ensuring that landlords benefit from long-term occupancy and stable income.
Currently, the average office lease transaction in Bucharest stands around 1,350 sqm, while in Cluj-Napoca it averages approximately 1,800 sqm. In terms of take-up, Bucharest witnessed around 240,000 sqm of office space leased so far in 2024, reflecting its position as the country’s primary business hub. Although the 4th quarter is usually the most dynamic, we expect the year end to register a decrease in market activity of 10-20%, as compared to 2023 activity.
After a rather quiet beginning of the year, Cluj-Napoca, sees office take-up of around 42,000 sqm, driven by the city’s expanding players in tech and IT sectors. We anticipate further sustained growth in Cluj-Napoca, with this year’s take-up expected to be three times higher than last year. Griffes contributed by 1/3 to the total market activity, advising on the largest new lease recorded in the city in the last 5 years and clearly setting the team far ahead as market leader in advisory services. These figures illustrate the steady demand for office space in both markets.
,,2024 has been a truly transformative year for Griffes, showcasing the strength of our long-term partnerships with landlords and our ability to adapt to the evolving needs of the tenants. We have been relentless in searching for balance in between a very granular demand and a higher risk environment (supply wise), so we became hypercreative to craft solutions. Over half of our work is with tenants that already work with us the 2nd or 3rd time, which is fantastic for a team only several years old, and most of the lease duration we signed are for more than 6 years, firm and robust. In a market where word of the day is ”volatility” – this is what I call true extra value and high performance”, stated Andreea Paun, Founder and Managing Partner at Griffes.
Griffes activity continued to focus on Landlord Representation, where the company is the detached market leader, with more than 130,000 sqm under exclusive mandates – starting from land acquisition, design consultancy, leasing strategy and sale. Other important pillars are Tenant Representation and Set-up services, advising tenants with their real estate strategy.
Griffes’ office portfolio includes several prestigious properties across Bucharest and regional cities, such as Unirii View in Bucharest, a fully renewed flagship downtown building; J8 Office Park in the northern part of Bucharest, which is powered by 100% green energy, features solar panels for heating, and has a ventilation system that provides 100% fresh air; Record Park in Cluj-Napoca, a mixed-use project with 100% occupancy and Muse, the boutique office building delivered last year in northern Bucharst, currently fully leased.
“Our approach to Landlord Representation is built on teaming up with the landlord to create tailored strategies that maximize each property’s potential, and we’re proud to have achieved this with our recent partnership with Portland Trust for J8, where we concentrate our efforts for Bucharest. We have consistently succeeded in matching the right tenants to the unique characteristics of each building, ensuring landlords benefit from high occupancy rates in record time, such as in Unirii View’s case, where most probably the renewal rate will be 100% after 6 years from the delivery. With less than 100,000 sqm new deliveries announced for the next 3 years, the quality of the stock is even more a critical topic, hence all the buildings in our portfolio are green certified, boasting outstanding specifications that meet the highest sustainability standards” said Iuliana Vintila, Operations Manager at Griffes.
About Griffes
Griffes is the largest Romanian independent, unaffiliated real estate consulting company, founded in 2016 by Andreea Păun, following 15 years of experience in real estate and property marketing. Griffes office portfolio spans 130,000 sqm and includes significant properties such as Unirii View building in downtown Bucharest, J8 Office Park in the north, the mixed-use project Record Park in the heart of Cluj-Napoca, Liberty Technology Park, a large-scale urban regeneration project in Cluj-Napoca, Paltim in Timisoara, the boutique office building MUSE Offices in Bucharest, and other projects in regional cities.
Occupiers assisted by Griffes include the IT and outsourcing company Wipro Technologies, in the consolidation and relocation of operations on a 17,000 sqm surface in Bucharest and Timisoara, office consolidation for renowned software companies such as Veeam Software, engineering and automotive companies, such as the opening of Nagarro, Arobs Engineering or MHP offices in Bucharest or Copeland’s new office opened in Cluj-Napoca.
Griffes also played a crucial role in facilitating the Genpact transaction, securing 30,000 sqm of office space in Hermes Business Campus – the largest market transaction in the last ten years. Visit us at: www.griffes.ro.
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