Rents are subject to upward pressure in some submarkets, even exceeding the inflation rate.
The exception to the rule could be related to some of the big tenants, who, in certain cases, have quite a lot of bargaining power. Otherwise, a pre-let for a build-to-demand project, for example, would likely attract a rent 5-10 percent higher than it would normally have been a year ago, according to Colliers.
As for the vacancy rate, the mid-year figure of 15.25 percent remained unchanged at the end of 2022, but down from 16.5 percent at the end of 2021.
“It is a positive development, considering that, a year ago, we expected a potential growth of up to 2-3 percentage points in 2022, against the backdrop of weaker economic prospects and the impact of hybrid work, negative evolutions that do not happened fortunately. It is important to note that, while the vacancy rate for the entire market in Bucharest is approximately 15 percent, the vacancy rate for qualitative, relatively new and well-positioned offices is in the single digits,” says George Didoiu, Director, Tenant Services, Colliers’ Office 360.
