Office
Transactional activity was robust in Q4 at 116,000 sqm. The total for the year exceeded 463,000 sqm (+43% y-o-y), setting an all – time annual take-up record in the city. This was 19% higher than the previous record of around 390,000 sq. m set in 2019. However, the net take – up had a share of only 46% in the total leased volume in Q4, with a vacancy rate of 14.7% being registered in Bucharest at the end of the year. Office rents across in Bucharest remained stable in Q4, and the prime headline rent in the CBD area remained at €22.00/sqm/month. There are only 2 under construction projects in Bucharest amounting to 42,500 sqm GLA, and it is possible that there will be no deliveries in 2024.
Logistics
2023 was a strong year for the industrial and logistics market, as the segment registered consistent activity in both supply and demand. Total annual take-up surpassed 1 million sqm, in line with the levels reported in the 3 years beforehand, with almost 300,000 sqm being transacted in Q4. New demand continues to be the main driver of the leasing market, accounting for 66% (672,000 sqm) of the 2023 gross take-up. More than 174,000 sqm of industrial & logistics space was completed in Romania in Q4, with the annual development activity reaching 452,000 sqm. The prime headline rents in Bucharest and in the main industrial & logistics destinations in Romania slightly increased at levels ranging between €4.30 - €4.70/sqm /month in Q4 2023, an upward trend which is expected to continue.Retail
The retail market registered a 144,200 sqm of new supply in Q4, bringing the total 2023 new supply to 213,000 sqm GLA - a 7-year record. Over 500,000 sqm of new projects are currently under different planning and construction stages and are expected to be completed in the next 5 years. Prime shopping center rent in Bucharest stabilized in Q4 2023 at a level of €80 - €85/sqm/month for a 100 - 150 sqm unit located in a dominant shopping center.
