Companies continue to set up new office HQs in Bucharest
Based on a JLL report, companies have rented almost 70,000 sqm of office space in Bucharest in the first three months of 2018. Approximately 30% of the demand came from companies with former headquarters in old, small buildings or in other different type of buildings. We’ve noticed an increase for this segment of demand in comparison to 2017 when it accounted for less than 10% of the total take-up.
There are a couple of reasons for the growing interest of these companies in modern office space. It can be either the fact that the spaces that the company have previously occupied no longer responds to their demands or simply that fact that their business is expanding and the company needs more space. In some cases, companies have decides to consolidate several small buildings into a larger, modern project. Additionally, as companies are having difficulties finding and retaining employees, the work environment and facilities offered have their importance. In this case, a modern space and a good location represent a plus for the company.
The areas in Bucharest targeted by companies that moved their headquarters into modern office buildings were Center, with more than half of the demand and West, with 30% of the total.
IT & communications companies continued to be the most active tenants with more than 60% of demand in Bucharest, followed by energy companies which cumulated over a quarter of total take-up.
More than 60% of the total take-up represented new demand (new contracts, extensions of the existing offices and pre-lettings), which can accommodate at least 4,100 employees.