The latest CBRE report states that although 2019 was characterized by a slight decrease in the total demand for office space, CBRE obtained historical results for the profile market by renting for the first time a total of 1 million square meters of office space over the past year, in the region.
According to CBRE statements, for the Romanian market, 2019 was a prolific year, the modern stock of office spaces exceeding 3 million sqm and, modifying the composition of the office building classes: class A becomes for the first time, with 53% of the total. As the main market of the country, Bucharest registered a strong demand, about 386,000 sqm being rented in 2019 – an impressive increase of 19% compared to 2018.
The largest market shares to date in all CEE countries
CBRE managed to lease even more office space in 2019 compared to the previous year’s performance, despite the relatively contrasting overall picture of CEE office leasing markets. While the net take-up (net rental volume) in Vienna returned to 15% and to almost 30% in Bratislava, Bucharest and Moscow registered a remarkable increase of this indicator compared to 2018 (27% and 23 respectively). %). Renewals of leasing contracts have been increasing throughout the region.
In 2019, real estate agents processed rental transactions totalling over 4 million square meters in the ECE region (including Austria, Slovakia, Czech Republic, Poland, Hungary, Romania and Moscow). As a market leader in the region, CBRE traded a quarter of all leasing contracts, with CBRE teams signing contracts in major cities of the region for areas such as: 230,000 sqm in Warsaw, 130,000 sqm in Budapest and 118,000 sqm in Prague – for to name just three of the largest markets for absolute volume.
“The office markets in Central and Eastern Europe have, for the most part, performed exceptionally well, despite global external turbulence. Overall, 2019 was a record year for our office teams, with over 1,000,000 sqm traded. Our prospects for 2020 are positive, it will be another full year for the region, with an increasing tendency to pre-lease future real estate projects by our occupying clients. “Commented Kate McMurtrie, Executive Director, A&T Occupier (Offices), Central and Eastern Europe.
The demand for offices remains high in Bucharest, with a focus on class A office buildings
Dynamic economic growth has shown its effect on the Romanian real estate market since 2019. The total rental volume approached 390,000 sqm – while CBRE rented over 20% of the office space processed last year. The average contracted area in the rental contracts was 4,500 square meters, while the average surface in the renewal and renegotiation contracts represented 2,500 square meters.
“The demand for office space is high, and the market is ready to absorb deliveries from 2020: 12 new buildings are expected to be added to the modern stock, their gross rentable area being about 214,000 square meters. The vacancy rate in Bucharest is 9.8%, higher by 2.4 basis points compared to 2018, but it is worth mentioning that 70% of the total of unoccupied spaces are found in class B office buildings. increased by pre-rent, only 60% of the office space is still available in the properties under construction. Going back to the office building classes, a study conducted by CBRE last year revealed that 70% of occupants intend to increase their level of investment in real estate technology in the coming years, in a way that is more focused on employee comfort, while office owners have begun to focus on energy efficiency and sustainability. We are witnesses and artisans, at the same time, of the transformation of the Romanian office market, and this supports our unique positioning, of architects of experiences,“ said Tudor Ionescu, Head of A&T Services, Offices at CBRE Romania.