The positive signs of the market are also seen in the evolution of office pre-lease and expansion transactions in Bucharest, generated by companies that have decided to either move to a new location or expand their activity in office buildings where they already operated.
If we take as a reference the first semester of 2020 (when Romania had to face the first wave of the Covid-19 pandemic and the office market was among the most affected areas), this segment of the demand for new spaces increased by 7 % in the second half of 2020 and 48% in the first half of this year.
"We estimate that the positive market trend will continue until the end of the year. We have noticed that in the last six months some of the ongoing requests come from companies that want to enter the Romanian market and we consider that the effects of Brexit and some difficult situations generated by the pandemic in countries more affected than Romania, (such as India) creates favorable premises for Romania to be chosen as a destination for the relocation of activities or companies in our country, especially in the fields of IT&C, back office and shared service activities, automotive industry", says Alexandru Petrescu, Managing Partner at ESOP Consulting.
The total volume of office transactions has also increased - new spaces (rent, pre-lease and extension), including contract extensions in Bucharest, in the first half of 2021, compared to the first half of 2020, but also compared to the second semester of 2020.
In total, in the first half of 2021 offices were traded with a total area of 132,397 square meters, 70% more than in the first half of 2020, the most affected by the pandemic.
By far, the most active field was Medical & Pharma
The most dynamic field of activity in H1 2021 is the medical field, which capitalizes on the flexibility offered by the owners of office buildings and expands both by opening new medical clinics and private hospitals.
ESOP Consulting has mediated the rental of two office spaces to be transformed into medical clinics in the first half of 2021.
“The current health situation and the greater care of the population for health are prerequisites that this growth trend of the Medical & Pharma segment will continue in the next period. There is now a favorable context in which office building owners offer greater flexibility in terms of business conditions and benefit packages offered to tenants. An important advantage of companies in the field of Medical & Pharma is the fact that they prefer contracts for periods longer than the current market average and this aspect is an advantage for owners as well", says Alexandru Petrescu, Managing Partner at ESOP Consulting. (source: Esop Consulting)
