Bucharest Q3 new take-up office activity falls 21% y/y - JLL

Take-up by geography shows a switch in occupier preferences with the West submarket capturing 39.7% of the leasing activity, followed by Center North Pipera City and Floreasca BV corridor with 13.3%, 12.3% and 8.2% respectively, the company said in its Q3 2012 Bucharest city report.

Prime office rent decreased marginally to 18.5 euro ($23.9) per square metre per month, the company said adding that it expects additional softening in prime office rents with a modest recovery not expected before the middle of 2013.

The overall vacancy rate for class A & B is estimated at 17.16%.

"A significant decrease in overall vacancy rate could occur if occupiers commit to larger leases in existing premises, rather than selecting projects with delivery in 18-24 months," the company said. “The vacancy rate is vulnerable to the ongoing consolidation process of larger occupiers and announced decreases in vacancy will materialize only in 2013.”

($=0.7729 euro)