Approximately 160,000 sq m of modern office space was leased in H2 2013, driving the annual take-up to nearly 276,500 sq m.
Demand for modern office space in 2013 accounted for over 90% of total take-up in the office market (300,000 sq m including Class C buildings). This is the highest level seen since 2009 and indicative of a positive trend in the Bucharest office market.
Noteworthy deals include Electronic Arts’ lease of the entire AFI Park II office building (12,000 sq m), the largest pre-lease of the year, in a transaction intermediated by The Advisers/Knight Frank (exclusive landlord representation). The largest renegotiation transaction (26,000 sq m) was signed by American multinational company HP in Novo Park, with landlord advisory from The Advisers/Knight Frank.
The average size of lease agreements signed for modern office space in 2013 was c.1,700 sq m. Transactions for office areas of less than 1,000 sq m were most numerous, followed by deals for areas between 1,000‒3,000 sq m. As in 2012, new occupation transactions helped to drive occupier activity, accounting for 42% of 2013 take-up. On a year-on-year basis, new occupation transactions registered a large increase compared with 2012, when they represented 31% of total leasing activity.
For 2014, the total take-up is expected to be similar to the previous year. Taking into account recent trends, pre-leasing activity is expected to be a prominent feature of the market in 2014.
