about us | newsletter | contact | archive | members area
Bogdan Nitulescu, Tremend
Cryptocurrencies volatility is a big problem»
  News:      POLITICS   |   ECONOMICS   |   ENERGY   |   INVESTMENTS   |   APPOINTMENTS   |   GREEN   |   INFRASTRUCTURE   |   REAL ESTATE   |   AGRIBUSINESS   |   DRIVING   |   CITY LIFE   |   EVENTS   |

JLL Romania: 80 per cent of buildings under construction built according to international green standards

Stability and sustainability are the words that can describe the Romanian office market in 2017, according to Madalina Marinescu, Office Department consultant JLL Romania.

2018-04-03 11:02:53

"Even though the total development activity was slower compared to 2016, the office market remains active both in term of leasing and deliveries in 2017," she told The Diplomat-Bucharest. "The leasing activity was supported mainly by IT&C companies and BPO/SSCs, both new to the market or in search of expanding space. Vacancy rate in Bucharest decreased over the year to around 9.2 per cent, one of the lowest levels registered since the financial crisis. Outside of Bucharest, the vacancy rate is estimated at six to eight per cent. Office supply in Bucharest reached 140,000 sqm in 2017, a value half of that registered in 2016. With a stock of 2.53 million sqm, Bucharest is still behind in the CEE in 2017. Another 700,000 sqm of office spaces represented the total stock in the main cities outside of Bucharest – Iasi, Timisoara, Cluj-Napoca and Brasov.

"The stock in Romania is also behind Poland (9.7 million sqm), Czech Republic (over four million sqm) and Hungary (approximate 3.4 sqm), which is stimulating developers to start new projects both in Bucharest and regional cities.

Timisoara and Cluj-Napoca were the most active regional cities last year both in terms of development activity and leasing activity. Projects amounting to 39,000 sqm were completed in Timisoara last year and the total demand for the city exceeded 20,500 sqm. In Cluj-Napoca 18,500 sqm new office spaces were built, and the leasing area comprised almost 9,000 sqm. The good performance of these cities came from the increase in demand from international and local companies, IT and BPO sectors being the main drivers.

According to Marinescu, 80 per cent of the buildings under construction are built according to international green standards: "These kinds of certificates are going to be a market practice and will be included in the standard delivery."

In her opinion, the macro-economic forecast for Romania continues to be positive, despite some recent concerns: "The country was the EU's top performer in the first nine months of 2017 (with GDP growth estimated at seven per cent) and it's expected to hold this position in 2018 as well, with GDP increase forecast at 6.5 per cent. IT, BPO&SSC companies will be the main drivers of the market. Also, the leases that are about to expire in class B buildings are looking to relocate into class A buildings, especially due to the rent and incentives offered by the landlords becoming more and more attractive."

Marinescu said the opportunities this year are the solid demand growth in 2016 and 2017, stable rents, and strong development of the North and Centre West areas in Bucharest, and the future expansion of the Metro system. On the other hand, the challenges will be political and economic environment; main office areas are becoming crowded; the public transportation system is undeveloped and the availability of the work force is in question.

Each new office leasing contract signed in Bucharest last year created at least 130 new jobs. The Dimitrie Pompeiu and South sub-markets made the top, with more than 200 new jobs per transaction, according to the latest JLL market report.

As a result, office net take-up in Bucharest (expansions and new leases) reached 171,000 sqm, a ten per cent increase when compared with 2016. The average leased office area was of 1,300 sqm, resulting in an equivalent of 130 new jobs created for each company. New demand accounted for 48 per cent of the total take-up registered last year whose value reached 350,000 sqm.

The average office area leased by companies varies depending on the sub-market in which the lease is signed. This reflects how the market is polarized in terms of the tenants′ profile.
According to JLL's report, the Dimitrie Pompeiu sub-market registered the largest average leased office area. Here, a number of 13 companies provided new demand of office spaces of more than 2,500 sqm, which means at least 250 new employees accommodated for each transaction.
In the South part of Bucharest, seven companies leased an average of approximately 2,100 sqm of office space and thus created in the area at least 200 new jobs each.

The evolution of CBD transactions came as a surprise of the market. Here, the average leased area of 1,634 sqm equals more than double of the value of 2016. In this sub-market 17 contracts were signed, representing 16 per cent of the net take- up. Considering that companies allocate on average ten sqm of office space per employee in the CBD area, each leasing contract signed created 160 new jobs.
Traditionally, in this sub-market, the average leased office area used to be a lot smaller as a consequence of the low vacancy rate. However, in the last 18 months the delivery of two important projects contributed to the conclusion of larger transactions than usual.

In the Floreasca-Barbu Vacarescu area, the average leased office area was 1,464 sqm. The sub-market made the top in terms of number of transactions, respectively 28, totalling an area of 41,000 sqm leased. The area also remained the most attractive in 2017, with almost 25 per cent of the net take-up and 4,100 employees (considering that each contract signed would generate 150 new jobs).
The Centre-West and West sub-markets registered transactions of more than 1,200 sqm each, comprising respectively 11 per cent and four per cent of the new demand.

With 15 transactions and an average of 1,296 sqm leased, the Centre-West area, the new hub of office developments will register an increase of 2,000 employees, 130 for each new contract concluded here.
In the other sub-markets, the average leased office area was below 1,000 sqm, with the lowest level registered in the North part of the Bucharest, of 427 sqm.

"As compared with 2016, last year registered an increase in both the average area leased by companies and the number of new leasing contracts. Consequently, the new demand exceeded the 2016 level, and most important, it was above the new supply delivered last year of 140,000 sqm. When looking at sub-markets, we do not see any significant change in the average leased area as compared to the previous year, but given the projects to be delivered in 2018-2019, we may see changes in the preferences of companies in terms of location", comments Marius Scuta, National Director Head of Office Department and Tenant Representation JLL Romania.



COMMENTS
There are 3 comments:

Authony Nato: on 2018-08-27 02:18:01

Hello everyone, I'm Jessica. The blank ATM card I got from Mike Fisher's blank ATM hackers helped save my life. I was in a very terrible situation financially but then my friend told me about them. I was skeptical about it but he assured me that it worked for him so I ordered one and here I am, back on my feet. Its the best out there with multiple withdrawals up to $80000 per month, easy usage and very safe as well, it's arrival was in less than a week. If there's anyone in need of financial saving you can contact them at blankatm001@aol.com. I cannot express how grateful i am to blankatm001@aol.com for placing me in a better financial position. Email : blankatm001@aol.com


Mr . Anthony Noto: on 2018-08-27 02:20:34


We Offers Financial Consulting To Client, Companies Seeking Debt / Loan Financing And Seeking For Working Capital To Start A New Business Or To Expand Existing Business. Interested Parties Should Contact Us For More Information Through Via E-mail: inforamzanloan@gmail.com

Do You Need A Loan To Consolidate Your Debt At 1.0%? Or A Personal Loans * Business Loans etc. Interested Parties Should Contact Us For More Information Through Via E-mail: inforamzanloan@gmail.com

We Have Loan Programs Tailored For Any Profile And You've Come To The Right Place To Satisfy Your Business Needs. If Your Company Or You Know Of Any Company With Viable Projects / Proposals That Needs Financing, Kindly Write Us With The Loan Requirement. Please, Contact Us For More Information: inforamzanloan@gmail.com

Do You Need A Loan To Consolidate Your Debt At 1.0%? Or A Personal Loans * Business Loans etc. Interested Parties Should Contact Us For More Information Through Via E-mail: inforamzanloan@gmail.com

We Offers Financial Consulting To Client, Companies Seeking Debt / Loan Financing And Seeking For Working Capital To Start A New Business Or To Expand Existing Business. Interested Parties Should Contact Us For More Information Through Via E-mail: inforamzanloan@gmail.com

Kindly write us back with the loan information;
- Complete Name:
- Loan amount needed:
- Loan Duration:
- Purpose of loan:
- City / Country:
- Telephone:
- How Did You Hear About Us:

Do You Need A Loan To Consolidate Your Debt At 1.0%? Or A Personal Loans * Business Loans etc. Interested Parties Should Contact Us For More Information Through Via E-mail: inforamzanloan@gmail.com

We Offers Financial Consulting To Client, Companies Seeking Debt / Loan Financing And Seeking For Working Capital To Start A New Business Or To Expand Existing Business. Interested Parties Should Contact Us For More Information Through Via E-mail: inforamzanloan@gmail.com

Mr . Anthony Noto: on 2018-08-27 02:21:01


We Offers Financial Consulting To Client, Companies Seeking Debt / Loan Financing And Seeking For Working Capital To Start A New Business Or To Expand Existing Business. Interested Parties Should Contact Us For More Information Through Via E-mail: inforamzanloan@gmail.com

Do You Need A Loan To Consolidate Your Debt At 1.0%? Or A Personal Loans * Business Loans etc. Interested Parties Should Contact Us For More Information Through Via E-mail: inforamzanloan@gmail.com

We Have Loan Programs Tailored For Any Profile And You've Come To The Right Place To Satisfy Your Business Needs. If Your Company Or You Know Of Any Company With Viable Projects / Proposals That Needs Financing, Kindly Write Us With The Loan Requirement. Please, Contact Us For More Information: inforamzanloan@gmail.com

Do You Need A Loan To Consolidate Your Debt At 1.0%? Or A Personal Loans * Business Loans etc. Interested Parties Should Contact Us For More Information Through Via E-mail: inforamzanloan@gmail.com

We Offers Financial Consulting To Client, Companies Seeking Debt / Loan Financing And Seeking For Working Capital To Start A New Business Or To Expand Existing Business. Interested Parties Should Contact Us For More Information Through Via E-mail: inforamzanloan@gmail.com

Kindly write us back with the loan information;
- Complete Name:
- Loan amount needed:
- Loan Duration:
- Purpose of loan:
- City / Country:
- Telephone:
- How Did You Hear About Us:

Do You Need A Loan To Consolidate Your Debt At 1.0%? Or A Personal Loans * Business Loans etc. Interested Parties Should Contact Us For More Information Through Via E-mail: inforamzanloan@gmail.com

We Offers Financial Consulting To Client, Companies Seeking Debt / Loan Financing And Seeking For Working Capital To Start A New Business Or To Expand Existing Business. Interested Parties Should Contact Us For More Information Through Via E-mail: inforamzanloan@gmail.com

 
ADD A COMMENT
 
Name
Email
Comment
Validation Code
   
 
 

3 Comments  |  2195 Views
Daily Info
Smart city is not a fad, it's a necessity

In June 2018, the ranking of the most "smart" cities in the world was published. In other words, the most advanced cities in terms of human capital, social cohesion, the econo...

Ondrej Safar, CEZ Group: "Romania can become a hub for international smart solutions providers"

"We are already in the digital age, so the upward trend of implementing smart solutions is inevitable in all areas," he tells The Diplomat-Bucharest. "Especially in terms of u...

Telekom Romania, a strong supporter of Smart City development in Romania

Just like many other countries in the world Romania is now facing an unprecedented growth of the urban population, which can be both beneficial and detrimental for the society...

In the industrial era, the fight was for finite material resources. Not anymore

Now organizations fight and develop themselves for and around their talent. In a nutshell, getting ahead in today's business world is all about attracting and inspiring an e...

Richard Sareczky, Mol Limo: "We look at expansion locations across CEE including Romania"

Consumer mobility behaviour is changing, leading to up to one out of ten cars sold in 2030 potentially being a shared vehicle and the subsequent rise of a market for fit-for-p...

 
 
   
advertising

advertising

advertising

More on News
President Iohannis urges Romanians to be more united, stay involved in modernizing Romania

Romania's President Klaus Iohannis urged Romanians in France to be more united and stay involved as much as they are now in helping modernise Romania.

FDI in Romania rises 10 per cent after ten months in 2018

Non-residents' direct investment in Romania (net FDI) totaled 4.56 billion Euro in January-October 2018, around 10 per cent more compared to the same period of 2017, Romani...

Catrina, MCSI: Romania is ready to roll up its sleeves and work during the presidency of the EU Council

Romania is ready to roll up its sleeves and work during the presidency of the Council of the European Union (EU), said Maria Manuela Catrina, State Secretary at the Ministr...

Two billion youth risk of being left behind in the Fourth Industrial Revolution workforce, says Deloitte

Almost two billion youth worldwide risk of being left behind in the Fourth Industrial Revolution (Industry 4.0) workforce, which is changing at an increasingly rapid pace a...

ArcelorMittal receives binding offer for European assets from Liberty

British-owned Liberty announced a conditional agreement to buy four European steel plants, employing more than 12,500 people.

The Romanian labour market needs a well-thought approach, says FIC

The Foreign Investors Council (FIC) has signaled in the past 2-3 years that its members are anticipating increasing strains on the Romanian labour market because starting w...

Revolut gets European banking license

Fintech startup Revolut is now officially a bank. While the startup initially expected to get its European banking license during the first half of 2018, the company has fi...