Codrin Matei, Principal Partner at Crosspoint Real Estate: “It’s a good time for small tenants to rent now.”
After the market presentation held by CBRE at CEDER 2023 showed that the overall volume of leasing transactions on the global market is decreasing, with big-sized tenants pulling back and the average size of transactions being smaller, the experts taking part in the Office Panel were invited to discuss their views over the relationship between tenants and landlords in the current context.
Ioana Roman, Partner and Head of Real Estate at Filip & Company, said that she did not think the power lied necessarily with either of these parties at the moment and that it all depended on the situation. She went on to mention that tenants “are closely looking at premium locations, premium class A buildings, energy efficient with sustainability focus. […] We have also had clients which actually came with a quite detailed package on what they expect in the future, considering they are also looking at a very long-term lease.” She further pointed out that in Bucharest, the tenant has a spread of premium buildings still with vacancy and the opportunity to choose “an office in a more cost efficient, sustainable building.”
Codrin Matei responded by sharing his opinion that the landlords are in an unfortunate situation. “At this moment, tenants, […] even the ones that require something in the range of 300 sqm up to 700 sqm, […] as long as we have rather high vacancy in the market, […] can [have] access to buildings that in the past they couldn’t. […] Right now, considering what is happening in the market, especially in some areas, [the landlords] are very open to accommodate any type of tenants in this way.” He continued by saying that he expected this situation to last at least until the end of the year.
