The third quarter unlocked many decisions at the level of large companies regarding office spaces. Thus, new space lease and renegotiation agreements were signed with a total value of 158,923 sqm, up 36% compared to the previous quarter.
Less than a third of the total leased area in the third quarter is represented by moves to new offices, the remaining two-thirds being office space with contract extensions. This trend indicates that many tenants prefer to maintain their existing locations. This stability approach can be influenced by the need to adapt to economic and market changes, avoiding the costs and uncertainty associated with major moves to new offices.
"Another significant trend in the current office market is the redefinition of how office space rental is understood. Companies are starting to approach rentals with a more strategic and agile perspective. This new approach to leasing often involves office space with more flexible termination clauses and the possibility to expand or reduce space as needed. This trend reflects the desire of companies to adapt quickly to changes in their environment. and manage costs associated with office space more efficiently", says Nicolae Ciobanu, Managing Partner at Fortim Trusted Advisors.
Since the beginning of the year until now, 340,894 sqm of office space have been leased in Bucharest, of which 189,747 sqm are current offices of companies, for which extension contracts have been signed. In terms of deliveries of new buildings, five office buildings with a total area of over 100,000 sqm were put into use in the first three quarters of 2023.
In the future, in the last quarter, it is estimated that only one small office building with an area of 7,745 sqm remains to be delivered.
The hierarchy of areas from which demand originates changed radically in the third quarter, due to the fact that several decisions were made in the financial system regarding the new work system.
In first place, the financial system climbed, with more than a third of total rentals, respectively by 38%. Among the banks that relocated or extended their contract on the current space were BCR, Garanti Bank, Unicredit and Idea Bank.
In terms of areas chosen by tenants, in the third quarter of 2023, most office space was leased in the West area of the Capital, a total of 39,128 sqm, of which 32,542 sqm were contract renegotiations. The largest areas were leased through contract extensions in The Bridge and Orhideea Towers office buildings.
On the other hand, the area where most new spaces were rented was the center-south area, where a total of 21,955 sqm new spaces were rented.
Large areas of office space were also leased in the northern areas (28,578 sqm), where renegotiations prevailed (20,138 sqm) and Floreasca-Barbu Vacarescu (FL-BV) with a total of 27,505 sqm, of which 25,300 sqm were also renegotiations. Among the companies that have chosen to stay in these areas are Huawei and Deloitte.
The Home has chosen a multi-facility office building, myhive Victoria Park, to open a future 3,070 sqm showroom in the north, through Fortim Trusted Advisors, member on alliance of the BNP Paribas Real Estate.
