Office
Q3 2023 set an all – time quarterly record in terms of demand in Bucharest, with 157,100 sq m being transacted. Over 400,000 sq m of transactions are expected to be closed by the end of 2023 for the first time. However, the net take – up had a share of only 35% in the total leased volume in Q3, and the vacancy rate saw a minor increase from 14.8% to 14.9% in Q3.
Office rents across in Bucharest stabilized in Q3, and the prime headline rent in the CBD area remained at €22.00/ sq m/ month. The under-construction pipeline in the city is fairly limited at only 80,000 sq. m GLA, the lowest it has been in the past 16 years.
Logistics
In Q3 2023, the total leasing activity in Romania slowed down compared with the previous quarter, with the gross take-up totaling around 169,000 sq m, corresponding to a 20% q-o-q decrease. As result, the YTD transactional volume was of 716,000 sq m, resulting in a 22% y-o-y drop. New demand continues to be the main driver of the leasing market, with a share of over 70% out of the gross take-up registered in Q3 2023 and also in first 9 months of 2023. The YTD new supply consists of 252,000 sq m across the country, with only 70,000 sq m completed in Q3.The prime headline rents in Bucharest and in the main industrial & logistics destinations in Romania slightly increased at levels ranging between €4.25 - €4.65 / sq m / month in Q3 2023, an upward trend which is expected to continue going forward.
Retail
Two new retail schemes were delivered during Q3 2023 bringing the total 2023 YTD retail new supply in the country to 69,000 sq. m GLA. Q4 is due to benefit from record deliveries of more than 220,000 sq. m of shopping centers and retail parks, with this year therefore being expected to register the highest number of modern retail deliveries since 2008. Prime shopping center rent in Bucharest has seen a small increase in Q3 2023, to a level of €80 - €85 / sq m/ month for a 100 - 150 sq m unit located in a dominant shopping center.
