SOFIA (Bulgaria), July 21 (SeeNews) – The leasing volume of office space in Sofia grew by an annual 55% to 85,638 sq m in the first half of 2017, Forton, a strategic partner of Cushman&Wakefield for Bulgaria and Macedonia, said.
In the second quarter alone, office space take-up in Sofia rose more than 60% year-on-year to 53,971 sq m, Forton said in a statement.
The market was mainly driven by IT and BPO companies, which generated around 70% of demand in the Class A market segment during the January-June period.
Other active sectors include financial services and pharmaceuticals, which are aiming to consolidate their office space, according to Forton.
There was a shortage of prime office space on the market during the first half of 2017. Preleases accounted for 30%-40% of the take-up volume during the review period.
The most notable transaction during the second quarter of the year was the deal signed by Telerik, part of Progress Corporation, for the prelease of 10,800 sq m in the class A office building Grafix Business Centre, which is currently under construction.
The second quarter was marked by one notable completion in the central business district area with the use permit of Millennium Center, which offers 23,200 sq m office gross lettable area, Forton said.
“After a significant increase in take-up in H1 2017 positive economic expectations bode well for the office market over the next quarters,” Forton said.
This trend should encourage transaction activity, it added.