IT&C companies and the banking and financial sector, the most active on the office rental market in first semester, JLL says
IT&C and computer companies were the most active on the office space rental market in Bucharest, generating over 40 percent of demand in the first half of this year, followed by the banking and financial sector, with 25 percent of the area contracted and by medical and pharmaceutical companies, with about 9 percent of total take-up, real estate consultancy firm JLL says.
In the first half of the year, the office space rented in Bucharest totalled approximately 100,000 square meters, of which IT&C and computer companies contracted about 40,000 square meters, banking and finance – 28,000 square meters, and pharma companies rented over 8,500 square meters.
Thus, after almost 50 percent reduction in Q1 2020 compared to Q4 2019, the decline in office demand in Bucharest continued during Q2, albeit at much lower rate of 19 percent when compared to the previous quarter.
Total gross transaction volume reached approx. 44,500 sqm in Q2 and almost 100,000 sqm in H1 2020.
Compared to the first half of last year, demand fell by half due to the COVID-19 crisis. The average transaction size in Q2 2020 was approx. 1,400 sqm.
Net take up accounted for 16,000 sqm, or 36 percent of gross take up during the period. Compared with net take up in Q1 2019, it stood at little over 33 percent.
“Following strong 2019, the expectations were high at the beginning of the year. Nevertheless, the onset of the COVID-19 pandemic in Europe towards the end of Q1 had a major impact, starting with the end of Q1 and to a larger extent during Q2. As companies adjust with the new operating scenario generated by the pandemic, we can expect demand to stabilize and perhaps see a modest growth in Q3”, said Alexandru David, Research Analyst JLL Romania.
In terms of vacancy rate, Q2 experienced a slight increase, from 8.7 percent in Q1, to approximately 9.3 percent.