Romania sees steady demand for modern office rentals in top regional centers

Romania witnessed a steady demand for modern office space in the first half of 2024, with a total of 205,853 square meters leased, marking a slight increase of 0.2 percent compared to the same period last year. Bucharest led the way among university centers chosen by companies for new headquarters and contract renewals, followed by Cluj-Napoca and Timisoara.

In Bucharest, companies leased 84 percent of the total modern office space traded nationwide. Cluj-Napoca secured the second spot with 13 percent of the total rented space, amounting to 28,770 square meters, while Timisoara accounted for 2 percent. The remaining share was distributed among Brașov, Sibiu, and Galați.

“In Bucharest, the new demand for office space has exceeded the volume of lease renewals. A surprising trend was the high demand from educational institutions, which leased or pre-leased a total of 25.9 percent of the space to convert it into classrooms with educational facilities. Conversely, in other cities like Cluj-Napoca, Timisoara, and Brașov, the volume of contract renewals surpassed new demand, following a wave of deliveries four to five years ago. However, large tenants such as Banca Transilvania, Deloitte, Medical Clinique, Medlife, and Ixxus also leased new spaces,” said Nicolae Ciobanu, Managing Partner - Head of Advisory at Fortim Trusted Advisors, a member of the BNP Paribas Real Estate Alliance.

Leasing in Bucharest

The majority of companies that opted for offices in Bucharest came from the IT & C sector (29 percent), followed closely by the private education sector. The largest contract signed in early 2024 was a lease of 10,000 square meters by Genesis College in Petrom City, intended for conversion into classrooms and educational facilities. The most sought-after locations were the northern areas of Floreasca - Barbu Văcărescu and the city center.

Cluj-Napoca: The most attractive city outside the capital

Cluj-Napoca saw a significant rise in office space leasing, with a total of 28,770 square meters rented since the beginning of the year. This is a substantial increase compared to the same period last year, which saw only 5,422 square meters leased. Lease renewals played a significant role in this surge.

Timisoara, in contrast, experienced a decrease in leased office space, with 4,898 square meters leased in 2024, down from 7,650 square meters in the same period last year.

“The office vacancy rate has fallen to 13.4 percent in Bucharest (down from 14.9 percent at the beginning of the year) and to 11 percent in Cluj-Napoca (down from 13.8 percent). This is due to the lack of new supply. Developers are expected to be cautious and will commence large projects only when pre-letting contracts have been signed. Several large, well-located mixed-use projects are under development, featuring retail, restaurants, various services including medical and educational, alongside office space,” said Costin Nistor, Managing Director of Fortim Trusted Advisors, a member of the BNP Paribas Real Estate Alliance.