Colliers: Once the engine of the office market, the IT&C sector is now at its lowest level in the past at least 15 years

Demand for modern office space in Bucharest has fallen by around one-third in 2025, mainly due to the slowdown in activity among IT&C companies, which accounted for only 10% of total leasing transactions in the first nine months of the year – the lowest level since 2010, when Colliers began monitoring the market under its current methodology. Outside this sector, however, the market remains relatively stable, with transaction volumes close to the multi-year average and to pre-pandemic levels. In total, companies leased around 150,000 square metres of office space, while new demand – transactions that directly contribute to occupancy growth – dropped by almost 30%, to below 60,000 square metres.

“The global slowdown in the IT&C sector is the main reason behind the weaker demand for office space on the local market. It is a significant shift, considering that before the pandemic, between 2016 and 2019, this sector dominated the market and drove it to record highs. In 2025, IT companies leased 83% less office space compared with the average of the previous decade in Bucharest if we look at the quarterly average. By contrast, the rest of the market – excluding IT&C – was only 7% below the average, showing that the office sector overall remains in relatively solid shape”, explains  Victor Coșconel, Partner | Head of Leasing | Office & Industrial Agencies at Colliers.

Coșconel adds that several large IT transactions are expected to be completed in the fourth quarter. However, even with these deals, the overall picture is unlikely to change significantly, as the sector’s activity remains well below previous years. For comparison, between 2010 and 2024, the IT&C sector accounted for an average of almost 40% of total office leasing activity in Bucharest, peaking at 50% in 2019.

Colliers consultants point out that 2025 is far from an exceptional year for office demand. On one hand, global economic uncertainty has made many international players more cautious about expansion plans, while the IT&C sector continues to face its own specific challenges. On the other hand, a more pessimistic domestic outlook has affected business confidence among locally owned firms, as well as those operating in more vulnerable industries such as retail.

“There are, however, some encouraging signs for office landlords. We are seeing more companies encouraging employees to be present at the office more consistently. Although a full return to the traditional five-day work week seems unlikely, a three- or even four-day office presence has become increasingly common, sustaining real demand for office space. As a result, a significant share of areas previously offered for sublease have been withdrawn from the market, as companies reconsider their medium-term needs. In addition, there is a modest but noticeable trend among certain companies to expand their occupied space – a clear contrast to the large-scale reductions seen in recent years”, adds Victor Coșconel.

Amid this shift in workplace dynamics, more companies are taking the opportunity to redesign and adapt their offices to future ways of working and collaboration. Colliers supports this process through its integrated Office 360° solution, which covers all stages – from strategy and design to implementation and cost optimisation. Through this comprehensive and tailored approach, the Colliers team not only delivers modern and efficient workplaces, often generating cost savings of over 10-15% compared with standard tender values, but also significantly reduces the complexity of each stage, providing greater transparency, control and value for its clients.

Another positive aspect for office landlords highlighted by Colliers is that, although demand has been lower in recent years – particularly in 2025 – it continues to be balanced by a limited supply of modern, well-located buildings, including those still under construction. According to Colliers’ analysis, at the current level of demand, Bucharest could absorb the existing vacant office stock in roughly five years. By comparison, in many Western European cities this process would take between 10 and 15 years, as in Paris or Rotterdam, and in some cases over 30 years, such as in Barcelona or Munich.

In other words, the availability of office space in Bucharest remains relatively low, and in this context, rental levels are expected to continue rising into 2026. Colliers consultants are already seeing 5-10% increases in renewal offers for competitive buildings, while new developments scheduled for delivery in 2026-2027 are quoting significantly higher rents, driven by limited supply and rising construction costs.