Therefore, the A or B class properties in the Central-Northern area have registered slight rent decreases, with EUR 0.5 – 1/sq. m/month, on the background of a significant volume of vacant spaces and of those being delivered. At the opposite, the Central-Western area, where the options are currently extremely limited, has registered a slight growth of the rents, up to EUR 1/sq. m, Mediafax writes.
The proximity to the metro, the limited offer and the large share of the IT&C tenants were the main reasons which determined the rent increases in Bucharest’s Central-Northern area, in the beginning of 2014 the level of rents reaching EUR 15-16/sq.m.
The limited offer in the Central-Western area, as well as the fact that the area is favourite by the IT&C companies (the most dynamic segment of the office request, which has generated 37% of the transactions with new offices in 2013), have determined the smallest vacancy rate for quality office spaces (A and B+ class), of less than 5%.
In downtown Bucharest, the asked rents have decreased with an average of EUR 1-2/sq. m/month for A and B class offices, considering that in those areas there were not registered any significant new deliveries, but we mainly refer to building delivered 5-8 years ago. At the opposite, the villas in downtown have maintained at the same level as in the beginning of last year.
The asked rent of the business centres in Central-Norther Bucharest (mainly in Barbu Vacarescu – Calea Floreasca area) has registered slight decrease for A class buildings, between EUR 0.5 and EUR 1/sq.m/month, compared to last year. However, the office spaces in Central-Northern area still remain on the first place regarding the level of rent, exceeding even those situated in downtown.
The zone is at the same time the most dynamic area of Bucharest, and the opening of Promenada mall (in the end of 2013) had increased the attractively and the comfort of the potential tenant companies’ employees.
The Eastern and Southern areas have registered a slight decrease of the superior class offices asked rent level, from EUR 11-13/sq. m/month to EUR 10-12/sq.m/month, following poor demand.
The office spaces rents in Bucharest business centres vary between EUR 7/sq.m/month for C class offices in South, East and North and EUR 17/sq.m/month for A class offices in Central-Northern Bucharest, in both cases slight decreases compared to 2013 being registered, according to Esop Consulting.
"In 2013 the rents maintained at a relatively stable level, with slight adjustments, both up and down, within plus/minus 10% margins. The adjustments have intervened depending on certain specific factors, such as the space quality, the vacancy period and the available spaces in similar neighbor buildings. In 2014, we forecast a rent stability in most of the Bucharest sub-markets, possible fluctuations (of 5-10%) could be appearing in precise situations of zones or buildings with high vacancy", has declared Mirela Raicu, corporate office division manager within Esop Consulting l CORFAC International.
The office spaces in villas have maintain at a relatively constant level of rents compared to the beginning of 2013, with small fluctuations on areas – slight increasing in West and light decreasing in Centre-North, East and South, on premium villas category.
The villas are cheaper for renting than the business centres, even the premium villas being rented at the level of price registered in the B class or even C class business centres. In 2013, the heritage villas, with between-wars architecture, reached rents of EUR 10-12/sq.m/month, following negotiations, being the most wanted by companies, with favourable lease terms. (source: wall-street.ro)
