Money Buzz! Europa

Tag: bucharest office market

  • First semester of the “pandemic year” in Bucharest office market

    First semester of the “pandemic year” in Bucharest office market

    New office space delivered in the first half of the year reached nearly 105.000 square meters, in tune with Colliers International’s estimates, but total demand in Bucharest was down by nearly 28%, to a bit over 124,000 square meters, while new demand halved after an exceptional year, to under 45,000 square meters.

    Overall, Colliers International consultants do not expect to see too much in terms of new contracts, except for companies that are actually pressured to relocate or expand, in the context in which their representatives have no clarity on how work processes will take place in the future or how their own business will evolve.

    Building activity in the office market continued almost normally during spring, even in the pandemic lockdown context, and there are no major delays for buildings due in 2020, with a potential pipeline of about 230,000 square meters, mainly already fully contracted or mostly pre-leased, according to data from Colliers International.

    The first half of the year saw a delivery of nearly 105,000 square meters in new modern office spaces, with the bulk coming online in the first quarter of the year. Two thirds of the total surface resulted from Ana Tower and the third phase of Globalworth’s Campus project.

    Besides the drop in demand as companies have to cope with uncertainties, another aspect likely to press new demand in the future should be the rise of spaces for sublease.

    This is because some companies that had relocated in recent years had also leased a large buffer space in case they continued to hire people and expand the business; now that these plans seem out of the window, this may free up quite a bit of spaces for sublease.

    Furthermore, work from home, either a few days a week on a permanent arrangement (during this state of alert), should also free up space going forward.

    No major changes have been seen in terms of rents until now, but Colliers International consultants say that we are likely to see moves.

    Over the near term, there are quite a few forces acting on the rent side: first, because tenants may not feel inclined to move, due to incurring costs, and their current landlords may not be as flexible with offering lower rents; meanwhile, than companies willing to take on new spaces (via a relocation or pure new demand) will likely lead to landlords being sensibly more generous (especially via incentives/gratuities rather than lower contractual rents). Also, there are quite a few major spaces, fully fitted, available for sublease at competitive rents.

    An important observation to make is that without the Pipera Nord submarket and class B buildings, vacancy would still be comfortably in single digit territory for class A office buildings.

    On the other hand, as things stand now, we will likely see lower demand going forward as well as pressures on rents.

    Vacancy is likely to climb towards 13-14% by year-end, with total demand for 2020 likely to cool down to a more mellow figure around 200,000 square meters, roughly half seen in 2019 and below the 300,000 square meter average seen this cycle.

    Because of time needed to negotiate deals, travel difficulties of decision-makers in international companies as well as uncertainties likely to linger into next year, 2021 may not look exceptionally good, but it could still surprise positively if the recovery quickens, with labour market indicators offering some encouraging prospects for now.

  • Owners and developers of office buildings can earn 10% more from rents

    Owners and developers of office buildings can earn 10% more from rents

    Building Owners and Managers Association (BOMA) or International Property Measurement Standard (IPMS) measurement standards for leasable areas can lead to an increase of the commercial value of office spaces, above 10% per month for owners, according to Colliers International’s consultants.

    The increase comes from the addition of leasable areas omitted from the initial architectural layouts. For example, in the case of an office building with a leasable area of ​​20.000 square meters, this increase translates to additional income from rents of above 300.000 euro per year.

    With over 1.000.000 square meters of Class A offices, in 75 projects, existing or in development across the country, measured using BOMA or IPMS standards over the past 8 years, Colliers International is by far the market leader among real-estate and consultancy companies offering such services on the local office market.

    The main benefit of these consultancy services is that developers and owners of Office Buildings can establish each project’s efficiency and profitability from the perspective of the Gross Leasable Areas of the building as a whole, as well as for each floor.

    In most cases, the increase of Gross Leasable Area is achieved and therefore landlords can rent all the spaces that contributed to the cost of the development of the project, spaces which are sometimes omitted from the initial architectural layouts. At the same time, the risk of having an additional, non-competitive Add-on Factor of Building common areas is avoided.

    “These measurements increase the commercial value of the projects. For a building of 20,000 square meters, a 5% higher leasable area means an additional income that can exceed one million euro over a five-year contract period, considering an EUR 14 average rent per square meter, In some cases we managed to add over 10% more leasable areas”, explains Ramona Savencu, Senior Associate Office Advisory at Colliers International.

  • Globalworth has leased over 25.000 square meters during the pandemic

    Globalworth has leased over 25.000 square meters during the pandemic

    The Globalworth’s portfolio in Romania has been consolidated by the prolongation and/or the extending of the lease contracts for a period of 3 – 11 years with key partners such as Adecco, Cegedim, Clinicile și Laboratoarele Sfânta Maria, Mazars, and one of the most important banks in the system that has rented the Globalworth building on the Exhibition Boulevard.

    Since the National State of Emergency is over in Romania, the companies consider reconfiguring the office spaces, so that the employees keep being safe when returning to work.

    For the last few years, the trend in the office sector has been the open space. Now, we focus on safety and social distance between colleagues.

    The new workplace planning led to an increase demand for space – the number of square meters of office space went up from 10 to 20 sqm per employee. This allows changing the layouts, rethinking open-space areas, expanding kitchens, common areas or meeting room and ensuring more distance between workstations.

    In the first month after the lockdown, 25% of the Globalworth tenants returned at the office and a gradual increase of up to 100% is foreseen until September 2020.

  • JLL: Working from home doesn’t equate to less demand for office space

    JLL: Working from home doesn’t equate to less demand for office space

    The latest JLL research „The future of global office demand” identifies four key factors that will play a major role in shaping future office spaces.

    Demand for office space is intrinsically linked to the economy; generally in a downturn, office demand drops off as employment levels fall and corporates move into cash preservation mode.

    The global pandemic has undoubtedly pushed us into a global recession and in the short term this will have a direct impact on office demand. However, in light of the success of wholescale working from home, the question is now being asked – over the longer term, will this be the catalyst for the end of the office? 

    Before examining these factors, however, it is worth taking a step back to look at the function and purpose of the office for both the employer and the employee.

    From a corporate occupier perspective offices provide a physical space to bring people together to coordinate activity, output and performance and to boost creativity.

    Along with this, they showcase a company’s brand and culture and play a key feature in attracting and retaining the best talent. The function of the office will continue to evolve, accelerating trends which emphasize the importance of collaboration and innovation to employee productivity.

    From an employee perspective the office provides a place for face-to-face interactions that technology struggles to replicate, such as social interaction, face-to-face collaboration, mentoring and managing. Even after the recent success of working from home, employees still state they would like to be in the office for the majority of the week.

    Factors shaping the future of demand

    Four key factors will have a major role in shaping the future of office demand in both the short and longer term:

    Remote working

    There are clear employee benefits to working from home, not least among them is ‘no commute’ and flexible hours. However, for many people their home living arrangements make working from home a below optimal choice, with its limited space, lack of privacy and/or more distractions. Additionally, employees miss the social interaction that office life brings.

    Maintaining productivity away from the office over the longer term is also yet to be verified and is likely to be boosted by regular office interaction. Flexibility will be key to employee satisfaction and the balance of office and remote working anywhere will be based around the individual.

    Office design

    There is little doubt that COVID-19 is going to accelerate some changes in office design. The most evident is occupational density. The upward trend has gone sharply into reverse as social distancing is adhered to.

    However, once a vaccine or effective treatment is available, there is likely to be a movement back toward the densities recorded pre COVID-19, but not all the way, as health and well-being will remain top of mind for occupiers. A greater focus on spaces which emphasize face-to-face interaction is likely as office space is redesigned or repurposed away from individual full-day occupancy desks.

    Technology

    Technology on its own is unlikely to have a significant impact on overall leasing demand. Over the short term, the adoption of new technologies will both facilitate remote working and also ensure workers’ well-being and efficiency on their return to office buildings.

    Over the longer term, occupier demand is expected to gravitate toward technology heavy smart office buildings, reflecting their ability to support companies’ environmental, sustainability, health and wellness initiatives. Therefore, reduced demand for lower-quality assets over the longer term seems likely.

    Commuting patterns

    The lack of commuting is the most quoted benefit of working from home and it is one of the areas that is causing the most concern on re-entry to the office – particularly in those cities which are highly dependent on public transport. A slower re-entry is likely in many of those cities. Some cities are pushing the benefits of cycling or walking.

    Over the longer term, face-to-face interaction (both internal and external) is still expected to gravitate toward centrally-located and highly-amenitized urban centers. These factors will underpin demand and the value of urban, transit-served markets over the long term.

    The final piece of the puzzle is where office demand will be focused – the spatial patterns of office demand. The inherent attractions of cities in terms of economic opportunities, social connections and quality-of-life offer are likely to prevail despite short-term concerns regarding social distancing.

    The forces that were already transforming our cities prior to COVID-19 will continue to drive change and boost office demand – digitization and automation, the Responsible City and globalization.

  • The office market will have to redefine itself in the next period

    The office market will have to redefine itself in the next period

    Following the recent transformations for the safe return of companies to the office, the office market will have to continue to redefine itself in the next period, to provide spaces that promote innovation and collaboration in the new context, according to Colliers International consultants.

    The office will remain the central element within companies, given that the need for intense collaboration and social interaction in the professional sphere is difficult to meet in a virtual environment, the effects of this period being expected to reflect on the way of working and on the workspace organizing.

    Most office space owners rely on a stable market with stagnant rents, but 30% expect it could be necessary to decrease rents by the end of this year or in the first three months of the next year at the latest, according to a recent study of Colliers International, conducted among 60 office owners who have diversified portfolios of space, both in Bucharest and in regional cities.

    Better commercial offers could prevent the increase of the vacancy rate among tenants who may face difficulties in the current context.

    More than half of owners say that they have felt the effects of the Covid-19 epidemic and 39% expect the vacancy rate to rise to some extent over the next 12-15 months, while 35% are more optimistic and bet on stable occupancy rates.

    Companies adopt a “wait & see” attitude to overcome the period of uncertainty

    ”Landlords and tenants need more time to understand the economic impact of Covid-19 before making a decision to renegotiate or renew the lease, whatever that may be. In addition, many companies depend on decisions made in the countries where their headquarter is located, some severely affected by Covid-19, which can have an impact on the immediate decision. On the other hand, due to social distancing and the new rules applicable in office spaces, tenants must carefully estimate the space required, increasing the average from 8 square meters to 15 square meters per employee, which seems to compensate for the impact generated by work from home. In this context, making a decision seems more difficult, and given the uncertainties that exist, it will probably lead to a postponement of the decision until the earliest autumn”, said Sebastian Dragomir, Partner & Head of Office Advisory at Colliers International Romania.

    The volume of transactions in the office market at 50%

    In the first three months of this year, the volume of transactions in the office market was half the level of over 100,000 square meters traded in the same period last year.

    However, net demand rose slightly, from 25,000 square meters in the first quarter of 2019, to 27,000 square meters this year.

    Delays in the delivery of new office spaces

    Regarding the delivery of new office spaces, the initial plans for 2020 entailed the delivery of an area of little over 200,000 square meters, and Colliers International consultants estimate that most of these projects will be delivered this year or in the first months of the year 2021 at the latest.

    In addition, more than 200,000 square meters could be delivered next year from the projects already started, while buildings that have not yet started construction, but were planned to be delivered next year, will most likely be postponed for the period 2022-2023.

    Depending on how the demand will evolve, in 2022 and 2023, the owners could bring to the market another 200,000 square meters in each of the two years.

  • Companies will return with only 40% of the employees back to the office

    Companies will return with only 40% of the employees back to the office

    With the ease of travel restrictions imposed by the Covid-19 pandemic, companies begin to resume their activity in the headquarters located in office buildings, but with only 40% of employees in a first phase, according to a survey of real estate consulting company Cushman & Wakefield Echinox.

    Thus, if during the period of isolation at home imposed by the authorities, only 4% of the employees continued their activity from the office, the occupancy degree of office buildings will ten times increase in the next period.

    However, more than half of the employees working in the services area will continue, at least for a while, to work from home, according to the survey applied between May 21 and 29 on a number of 33 companies in Bucharest and Cluj with a a total of over 17,000 employees working in office buildings.

    Half of these companies have returned or will return to the office with a significant share of employees during June, almost 20% of companies scheduled their return in September, while 13% of the surveyed companies, especially small and medium, intend to return to the office only at the beginning of next year.

    In this context, 30% of the interviewed companies say that in the next 12 months they will need less office space, 61% of the companies cover their office needs with the already contracted spaces, while 9% of the companies expect to need extra space.

    The stock of modern offices in Bucharest and Cluj reaches almost 3.5 million square meters, hosting over 300,000 employees in various fields, such as IT, telecom, financial services (banks – insurance), professional services (lawyers – consultants), media, etc.

  • 70% of employees want to continue working mostly from home

    70% of employees want to continue working mostly from home

    7 out of 10 Romanian employees want to continue to work mostly from home even after easing the measures to prevent the spread of coronavirus and after the state of emergency ends, according to Colliers International.

    Out of these, 60% believe that working remotely would be useful at least 1-2 days a week, and 10% would like to work even 3-4 days from home in the next period.

    Office buildings in the portfolio managed by Colliers International continued to be operational during the state of emergency, with no projects under conservation, so it is expected that activity will be resumed gradually starting May 18th.

    A quarter of employees expect to return to the office in May, but their work in office buildings will resume gradually, depending on the evolution of the coronavirus epidemic and further measures announced by the authorities. At the same time, it is expected that some companies will continue to apply remote working policies for a longer period, at least for employees who have children, in the context of suspending the activity of schools until fall.

    To ensure employees’ social distance within the office, employers need to consider some changes in the set-up of the space and furniture, especially in the case of open space offices. It is necessary to ensure a recommended distance of two linear meters between employees, which means that it will be necessary to increase the space allocated per employee from 8 square meters, which is currently the average in class A office buildings, at over 15 square meters per employee. In this context, some companies will have to allow a percentage of employees to continue working from home, so that the rules on social distance and rotation can be respected.

    New security measures in office buildings

    Measures that can be implemented by companies to prepare their offices for the return of employees include rotating offices from open spaces so that they do not face each other and directing the team to alternative office work areas. At the same time, temporary transparent plastic barriers can be installed in the reception areas to separate visitors from the reception desk, and high partitions can be installed in the offices between facing desks. Last but not least, in conference rooms, after removing a number of chairs, floor markings can be applied to indicate a safe 2 meters distance between seats, Colliers International consultants recommend.

    To reduce touching door handles, the doors of offices and conference rooms should be left open, unless there is an absolute need for privacy. There should also be signs in office buildings informing visitors about the distance rules, hand washing and sanitizing or wearing masks in public areas. Using signage, unique clockwise paths can be created through the space, and by adding arrow tape on the office floor, the recommended direction can be indicated.

    At the same time, building owners will have to regularly ensure complete sanitation of heating and cooling systems and air treatment plants, according to Colliers International consultants, as well as actions aimed to ensure periodic disinfection with an increased frequency and special solutions for sanitary and common areas. To align with the new hygiene rules, owners of office buildings will have an additional minimum cost of 2,000 euros per month for a medium-sized building.

  • Bucharest and other major university centers will attract new businesses

    Bucharest and other major university centers will attract new businesses

    Bucharest and the major university centers in Romania, such as Cluj-Napoca, Timişoara, Iaşi, Braşov or Craiova, are well positioned to attract new business in the services sector, despite the Covid-19 pandemic that slowed down the transactional activity and led companies to “work” from home, consider the Cushman & Wakefield Echinox real estate consultants.

    The actual context has highlighted even more the Romanian employees’ flexibility and ease of adapting to new situations, as well as the IT infrastructure developed in major cities, elements that have facilitated the transition from the traditional office towards teleworking, thus reducing the impact on operations.

    In fact, a study conducted by the Broadband Deals platform in Great Britain places Bucharest on the first position in a ranking of the best 50 cities in the world for remote working, a hierarchy that considered elements such as average internet speed, the amount of remote working jobs available, the living costs and the availability of home delivery platforms.

    The next three positions are taken by Houston, Las Vegas and Atlanta in the United States, while in the European ranking Bucharest is followed by Budapest, Kiev and Warsaw.

    In the short term, a more conservative attitude of some companies is expected, which will have to analyze the impact of this situation on the entire client portfolio, but in the medium and long term the local market will be rewarded for the ability and flexibility to work from home, in case it is required.

    On the other hand, most companies are currently considering the opportunity to offer employees more flexibility regarding their workplace even after the social distancing measures get more relaxed and as a health safety measure they are working on plans to reduce the density of office spaces.

    81,000 square meters of new office spaces​ were delivered in Bucharest this year

    In Q1 2020, 81,000 square meters of new office spaces​ were delivered in Bucharest, while Ana Tower and the third building of the Globalworth Campus project in Pipera were the most important deliveries.

    By the end of the year, new spaces with a total area of ​​around 145,000 square meters are expected to be delivered. Thus, the total volume of new office spaces will reach about 226,000 square meters, approximately 21% down from 2019 deliveries.

    Regarding the demand, while the volume transacted in Bucharest decreased in Q1 by 50% compared to the same period of 2019, up to 52,000 square meters, throughout Romania the level remained stable at about 21,000 square meters, the important activity being seen in Timișoara, Cluj and Iași, and also in Craiova, a city that is starting to attract more and more office occupants.

    The office stock in Bucharest reaches almost 3.2 million square meters, with a vacancy rate of 9.8%, slightly increasing, while the area of ​​modern offices in major regional cities – Cluj-Napoca, Timişoara, Iaşi and Brașov – approaches the 1 million square meters threshold.

  • Tenants expect to return to the office over the summer in Bucharest

    Tenants expect to return to the office over the summer in Bucharest

    Almost 70% of landlords and tenants in the office market believe that the Covid-19 epidemics will continue to affect their business throughout this whole year, with first signs of recovery being expected starting with 2021, according to a study conducted by Colliers International among 60 landlords and more than 100 tenants.

    While most tenants expect their workforce to return to the office before autumn, office market representatives worry that the impact of the epidemiological crisis on the real estate market will be at least similar to the financial crisis from 2009.

    92% of tenants will return to their offices in the summer of 2020 at the latest

    25% of tenants expect to resume activity within the office as early as May, while 67% believe this will happen over the summer, according to Colliers International’s study among tenants, of which close to 30% represent companies with more than 1,000 employees, which are relevant in the current office environment.

    About 55% of them are already dealing with negative or somewhat negative impact over their business due to Covid-19, with those active in medical, retail and shared offices being the most affected. Only 16% say that their business has not been affected so far and 6% are even positively impacted to some extent.

    While a quarter of tenants don’t have a clear picture of how the Covid-19 outbreak will affect them in terms of employees, 41% expect to maintain their workforce size and about 17% even estimate increases this year.

    However, 70% of tenants expect a decreasing trend in rents as a consequence of the Covid-19 outbreak, out of which 23% expect a major correction. Another 20% do not see the rents changing at all, while none of the interviewed tenants expects an increase in rents going forward.

    45% of landlords expect rents to remain stable

    Most landlords are betting on a flat market with stable rents, but 30% are rather expecting they will need to decrease rents by the end of this year or in the first three months of 2021 the latest.

    Better rent deals could help prevent a vacancy rate increase among tenants that could be facing difficulties in the current context. More than half of landlords say they are already impacted by the effects of the Covid-19 epidemics, and 39% expect vacancy rates to increase to some extent in the next 12 to 15 months, while 35% are more optimistic and count on stable occupancy rates.

    The office market is expected to recover starting 2021

    Some office market decision makers worry that the impact of the epidemiological crisis on the real estate market could be at least similar or even bigger compared to the effects of the financial crisis from over a decade ago. The concern is visible among more tenants (75%) than landlords (38%), while the rest are more optimistic and expect a lighter effect.

  • Cushman & Wakefield Echinox takes over the management of Mendeleev Office 5

    Cushman & Wakefield Echinox takes over the management of Mendeleev Office 5

    Cushman & Wakefield Echinox was commissioned to manage Mendeleev Office 5, an office building recently delivered in Bucharest downtown, by Akcent Development.

    This is the fourth office building that has been taken over under the management of Cushman & Wakefield Echinox, the Asset Services department being responsible for the daily administration of the building, tenant relationship management, operational supervision, financial services and landlord reporting, through on-site specialists and at the company’s headquarters, coordinated by Mihaela Petruescu, Partner Asset Services.

    Mendeleev Office 5 is a boutique office building, which revitalizes a historic area of the city, being located between Piaţa Romană and Calea Victoriei.

    The building has a rentable surface of 4,500 square meters distributed on basement, ground floor and eight upper floors. The underground parking has 50 places and is equipped with bicycles facilities and electric charging stations.

    The project includes walkable terraces, intelligent integrated technologies, hybrid climate-control system architecturally designed and integrated, heat insulation, motorized windows, low energy consumption, and the terraces on the 3rd and 8th floors stimulate the tenants’ creativity and offer a panoramic view of the center of Bucharest.

    The occupancy rate of the building is over 60% at delivery, among the tenants being financial consulting, PR and marketing or construction companies (Jazz Communication, Tud Investment Consulting, Aktor, Skin Media). Advanced discussions are for the 6th and 7th floors, therefore only the first floor and the ground floor – suitable for two commercial spaces fitting, are available for lease.

    Mendeleev Office 5 is developed by Akcent Development, which also owns Eminescu Offices building, managed by Cushman & Wakefield Echinox, and Rosetti Tower building.

  • Bucharest is pivoting towards a tenant market for office buildings

    Bucharest is pivoting towards a tenant market for office buildings

    • The stock of modern office spaces in Bucharest reached nearly 2.7 million square meters last year, up 12% compared to the previous year.
    • An additional 700,000 square meters could be delivered over the next two years, which means a 25% increase in the current office stock, which will increase competition for attracting new tenants, shows the annual report released by Colliers International.
    • The tenants will thus be in a position of strength in negotiations, and vacancy is expected to climb upwards to 12%, maybe even towards 13%, by year-end.

    Over 365,000 square meters were rented in 2019, up c.12% compared to the previous year, representing expansions of existing leases, new tenants entering the Romanian market and relocations from the stock of modern buildings. At the same time, lease agreements for 144,000 square meters were signed for office spaces to be delivered in 2020 or in subsequent years.

    New office space delivered in 2019 reached about 286,000 square meters, nearly double compared to the 150,000 square meters delivered the previous year, but under the initial estimates of Colliers consultants of  360,000 square meters, as two large projects were postponed for 2020.

    Bucharest Center West submarket was the star

    The Center West submarket was, by far, the most active, generating close to 100,000 sqm of new leasable office spaces in 2019, so a bit over one third of overall deliveries, with other spaces spread around various submarkets in central locations, the CBD, but also Floreasca – Barbu Vacarescu.

    The biggest project to come online was the Globalworth-built Renault HQ in the West submarket (47,000 sqm), followed by Vastint’s Business Garden Bucharest (over 41,000 sqm) and Portland Trust’s Expo Business Park (over 38,000 sqm) in the Piata Presei-Expozitiei submarket.

    Outside Bucharest, projects totaling 94,000 square meters were delivered in 2019, three quarters being buildings built in Cluj-Napoca (37,000 sqm) and in Timisoara (35,000 sqm), followed by Brasov (15,000 sqm) and Iași (7,000 sqm). This year the stock of office space is estimated to increase by 150,000 square meters in these four cities representing major office hubs.

    2020 is set to be a good year for the Bucharest office market, with Colliers consultants predicting demand for around 320,000 square meters, of which 120,000 square meters net office space. As in previous years, IT and financial services companies will be the main drivers of demand in 2020.

    ”The wave of deliveries from 2019 is reduced this year to 200,000 square meters, but with a spectacular return in 2021, when developers anticipate a potential of around 500,000 square meters, a new historical record. Thus, competition is on the rise between developers, but with the owners of existing modern buildings, which lost via relocations, just last year, tenants occupying 140,000 square meters. The tenants will be the ones who will enjoy opportunities, because Bucharest is starting to become a tenant market for office buildings. There will be increased competition for attracting new tenants, including from older buildings, some in very good locations, but which were built by inexperienced developers or which have not been investing in technical upgrades. The vacancy rate could reach 12-13%, up from 10.5% in 2019”, explains Sebastian Dragomir, Partner & Head of Office Advisory Colliers.

    The rents for offices remain relatively stable, with prime headline still around 18 euros per square meter in Bucharest (and an average in the region of 14 euros per square meter), respectively between 11 – 14.5 euros per square meter in other centers in the country. Romania has an investment yield of 7% for the best office buildings (likely to come down further in 2020), while in the countries of the region the yields are even 3 percentage points below: 4% in Prague, 4.5% in Warsaw and 5 % in Budapest.

    From the landlord’s perspective, this normalization of activity is coming at a moment when deliveries are slowing down as well, with 2020 having some 200,000 sqm in new GLA planned; 2021 is looking more crowded, with around half a million sqm in new leasable areas promised by developers. Given the realities of the market, Colliers consultants would expect that a significant amount of this pipeline for 2021 to be pushed back, as not all developers may score a major anchor tenant.

  • Shikun&Binui and Danya Cebus rented office spaces in Hyperion Towers

    Shikun&Binui and Danya Cebus rented office spaces in Hyperion Towers

    TC Capital announces the signing of new leasing contracts with two international companies, Shikun & Binui and Danya Cebus, for approximately 700 sq m of class A office spaces in Hyperion Towers, located on Pipera Boulevard.

    Both tenants will establish their headquarters in the first building of the complex which was refurbished with an investment of 7 million euros, and finalized at the end of 2019. Circa 60 people will work in the offices occupied by the two tenants.

    Shikun & Binui is an international company operating through its branches in Israel and around the world, and involved in various fields of activity, including infrastructure, real estate development, water supply and energy.

    Another important lease that has recently been concluded in Hyperion Towers is with Danya Cebus, an international construction company and part of Africa-Israel Investments. The activities are centred in the fields of residential construction, building commercial and office spaces, infrastructure development, and industrial design and manufacture, with projects in Israel, Romania and Russia. 

    Hyperion Towers is an office project owned by TC Capital, a property investment and development company located in Romania and lead by Ali Çapa. The ensemble comprises two buildings with a combined surface of 40,000 sq. m gross leasable area of Class A office spaces with ample parking capacity.

    At the moment, 50% of building A is leased or sold.  Among the other tenants from the first building there are companies such as: Euromedia, Adnet, RoMega Trade, Jotun, Skills Advertising, CEE Estate etc. TC Capital is currently engaged in advanced discussions with other potential tenants, active in various industries: marketing, audio-visual, trade, IT etc.