Over the past two years, contract renewals have accounted for a significant proportion of market demand, as many companies have postponed office rental decisions due to uncertainties surrounding hybrid working.
Endava Romania, one of the leading IT companies both locally and nationally, has a long-standing partnership with IULIUS and has been a tenant in the UBC building, an important landmark in the Cluj office market, since 2013. The lease renewal is one of the most significant transactions this year, both in the Cluj-Napoca market and in the office market overall.
“Endava sought a building that met specific criteria in terms of location, service ecosystem, and construction quality. After conducting a thorough market analysis, evaluating several locations, the tenant decided that the best option was to remain in the current location and strengthen its long-standing partnership with IULIUS. Cluj, the second-largest business center in Romania after the capital, is known for its remarkable economic dynamism, with growth that is unprecedented not only nationally but also within the European Union. This performance enhances its appeal. The city has become the headquarters for major IT and technology companies and is increasingly drawing the attention of real estate investors, as it meets the demand for expansion“, says George Didoiu, Director | Tenant Services at Colliers, noting the flexibility of both partners in understanding each other’s needs and achieving an ideal compromise for the coming years.
IULIUS is a developer and operator specialising in large-scale, mixed-use urban regeneration projects in Romania, with over 25 years of experience in the real estate sector. The company’s portfolio includes two major urban regeneration projects, Palas Iași and Iulius Town Timișoara, as well as the national Iulius Mall network (Iași, Cluj-Napoca, Suceava) and 15 Class A office buildings (Iași – 7 United Business Center buildings in Palas and Palas Campus, Cluj-Napoca – 3 buildings and Timișoara – 4 buildings). Sustainability is at the heart of the IULIUS business model, with the national network of shopping centres and office buildings being LEED® or EDGE certified.
”We particularly value the partnership with Endava, as it is one of the companies that has chosen our offices in all the cities where we have developed the UBC network, in Iasi, Cluj-Napoca and Timisoara. We are aware that the quality of service is a priority for the partners we work with and their employees, and our concern has been and continues to be to offer diverse solutions and facilities at a high level. Our continued cooperation with Endava for another five years confirms not only the quality, but also the uniqueness of our offices on the market. The integration of office space with commercial and recreational areas in mixed-use complexes facilitates employees’ access to a micro-universe of services that we know they appreciate: from various dining and social options, sports and entertainment facilities, to parks, a hypermarket, medical services and public services”, said Silviu Băbțan, Office Buildings Manager United Business Center Cluj.
About half of the leases signed in the first half of this year were renewals. By comparison, pre-pandemic lease renewals averaged 28% per year, with lows of 19% in 2011 and 22% in 2019. While hybrid working hasn’t caused the ”office apocalypse” predicted a few years ago, it has prompted some companies to downsize their office space.
”The regional cities have seen significant growth in recent years, with a substantial stock of new Class A buildings and tenants expecting high standards of quality and efficiency. The office market in Cluj-Napoca is stable and mature, with few available spaces, especially in very high quality locations, where the vacancy is below 3%. The predominant trend in the local real estate sector is stability and maintenance of space rented by large tenants”, concludes George Didoiu.
