Almost 80,000 sqm of office spaces delivered in the first quarter in Bucharest

After strong deliveries during 2019, the same pace was kept in Q1, the office buildings completed during the period adding 78,200 m² to the modern office stock in Bucharest. The largest projects completed in Q1 were Ana Tower, in the North-West Expozitiei sub-market, with 34,700 m² GLA and the third building of Globalworth Campus, in the Dimitrie Pompeiu sub-market, adding 32,000 m² GLA, according with Bucharest City Report Q1 2020.

Deliveries in Q1 2020 represent approximately 84% of the volume recorded in Q1 2019, when 92,800 m² were added to the market.

Several important deliveries are awaited for the next three quarters of 2020, totaling 105,000 m². Among these is for example One United Tower, adding 23,600 m² to the Floreasca – Barbu Vacarescu sub-market, plus the third building in The Bridge projects and the second and third buildings in Campus 6, all in the Center – West sub-market, totaling over 57,000 m².

Considering the ongoing COVID-19 pandemic, combined with significant new deliveries in the market, we estimate that the vacancy rate is likely to increase in 2020.

Regarding the demand, after the strong take-up level in the last quarter of 2019, Q1 experienced an almost 50% crunch in the office spaces leased in Bucharest. Total gross transaction volume reached approx. 55,000 m².

That is nearly half the volume recorded in Q4 2019, as well as in Q1 2019. The average transaction size in Q1 2020 was almost 1,500 m².

Net take up accounted for 19,200 m², or 35% of gross take up during the period. Compared with net take up Q1 2019, it stood at 46%.

Although expectations were high at the start of the year, following a strong 2019, the onset of the COVID-19 pandemic in Europe towards the end of Q1 abruptly decreased the momentum, also seen in lower transaction volumes.

As the medical emergency unfolds, we can expect a further decrease in demand during Q2. At this time, it is difficult to estimate take up volumes for 2020, as there are many unknown factors and uncertainties related to COVID-19. In terms of vacancy rate, Q1 experienced a slight increase, from 7.7% in Q4, to 8.7%, after strong deliveries in Q1

Contact form

Fill the form