Office developers have started to orient towards the outskirts of Bucharest because of the scarcity of quality plots in the centre of the Romanian capital. Over 200,000 m[sup]2[/sup] of mostly Class A office space will be delivered in Baneasa, north of Aurel Vlaicu airport, within the next two to three years and 85,000 m[sup]2[/sup] is under construction in the Pipera area. A further 200,000 is also in the pipeline, property advisor DTZ has said in a new report.
Office developers have started to orient towards the outskirts of Bucharest because of the scarcity of quality plots in the centre of the Romanian capital. Over 200,000 m2 of mostly Class A office space will be delivered in Baneasa, north of Aurel Vlaicu airport, within the next two to three years and 85,000 m2 is under construction in the Pipera area. A further 200,000 is also in the pipeline, property advisor DTZ has said in a new report.
In contract, there is 650,000 m2 of office space in the centre of Bucharest, of which a third falls into the Class A category as defined in Romania. More often than not, these Class A buildings are chosen as headquarters by consultancies or international companies active in banking, insurance, IT or the pharmaceutical sectors.
Rents for Class A office buildings in Bucharest range from EUR 192 to EUR 228 per m2 a year, plus VAT. Smaller spaces available at short notice can reach EUR 240 per m2 a year. 'However few of the buildings in this category conform to the standards in other more developed cities in Europe,' DTZ said.
The most high profile project in the city centre is Esplanada, a 800,000 m2 multifunctional development costing EUR 1 bn. But due to the lack of large plots of land, the high prices of suitable sites and 'unsatisfactory' amenities in the central and semi-central districts of the city, many office developers are looking to the outskirts of Baneasa, Pipera, Barbu-Vacarescu and in the west. The preponderance of the new projects are categorised as Class A and DTZ said it is expecting a better alignment with European standards soon.
Most of Bucharest's current 350,000 m2 of Class B offices are also occupied by international companies, though generally they are businesses like call centres or back offices that do not have a direct connection with clients. Class B offices can command between EUR 12-15 per m2, but depending on location the rent can be as low as EUR 96-108 per m2, and as high as EUR 216 per m2 in top locations in the north-central area. An additional 120,000 m2 of Class B office space will be delivered this year.
