Office pre-leases doubled in S1 2018, compared to the semester average of 2017

In total, in the first half of 2018, rental, pre-lease and expansion transactions amounted to a total of 141,000 sqm in the first semester of this year, up 24% from the half-yearly average of the previous year.

In addition to pre-leases, a slight increase was recorded in the expansion segment, with 18.6%, while rentals in existing buildings decreased by 34%, to 47,200 sqm in S1 2018, compared to the half-yearly average 71,500 sqm of 2017.

"The volume of pre-leases in the first half of this year is on the rise due to annual increases in office space deliveries of more than 75% in both 2018 and 2019. We expect a further dynamic on the pre-leases segment", said Alexandru Petrescu, Managing Partner at ESOP Consulting l CORFAC International.

Class A office buildings, completed in S1 2018 or still under construction, attracted more than 60% of all Bucharest office transactions in S1, excluding renegotiations.

A class office projects such as AFI Tech Park, Ana Tower, Campus 6, Day Tower, Expo Business Park, Globalworth Campus, The Bridge, Orhideea Towers, Unirii View, have attracted the attention of large tenants, such as Enel, PWC, London Stock Exchange, Superhippo, Schlumberger, Dell, Mercury 360, Knauf, World Class, UPC. Some of these companies, such as the London Stock Exchange, will open its first offices in Romania in the pre-leased premises in the first semester, to be delivered in the coming period.

The Bridge and Day Tower projects attracted tenants who pre-leased the largest areas in the first half of 2018, with a total area of 20,500 sqm and 11,500 sqm. The other projects recorded pre-rentals varying between 5,000-9,000 sqm.

Most of the companies that have rented office space in the first semester of this year have chosen the Centre-West area, in the new business pole Orhideea - Grozăveşti - Politehnica - Tudor Vladimirescu, the surface traded here being 41,000 sqm (representing 52% of the total of 78,600 sqm pre-leased in S1 2018).
 
In this area, there are also most A class office projects that have close delivery dates in 2018-2019: Campus 6, The Light, Business Garden Bucharest, The Bridge, Orhideea Towers, AFI Tech Park.

Second place in the pre-leases of the first half of the year is the Centre-North area, with a share of 26%, and the third place is the downtown area with a share of 22%. (source: Esop)