Advisory firm JLL summarizes the situation on the office markets in Bucharest at the end of 2016.
The current modern stock is of almost 2,6 million m², out of which more than 57% is considered class A.
The market is divided in 12 sub-markets out of which the largest are Floreasca Barbu Vacarescu (16.8% of the total stock), North (13%) and Dimitrie Pompeiu (13%)
Office supply reached 298,000 m², the largest surface delivered since 2009, and a value 4.5 times higher than the one registered in 2015.
The largest projects delivered were: Hermes Business Campus B&C (61,500 m²), Globalworth Tower (50,000 m²), Oregon Park (44,000 m²), AFI 4&5 (32,000 m²), The Landmark (22,000 m²) and Metroffice Ph.1 (20,000 m²).
Gross take-up reached an all-time record level of 364,000 m², a 46% growth when compared to 2015. Net take-up reached approximately 155,000 m², a 42% increase when compared with 2015. Out of the total take-up, 37% targeted the West and Center-West sub-markets, while 31% Floreasca Barbu Vacarescu and Dimitrie Pompeiu sub-markets.
IT&C and BPO companies were the most active in terms of leases, followed by automotive companies and professional services
Vacancy rate in Bucharest increased over the year to 13.5%, 20 bps above the level of Q4 2015. Vacancy rate is expected to remain relatively stable in 2017, as the supply will most likely be covered by the new demand.
Prime rents remained stable for the last 5 years at EUR 18.50 m² / pm but incentive packages increased slightly over the year.