Money Buzz! Europa

Tag: office in bucharest

  • Coronavirus pandemic reshapes employees’ perception of ideal workspace

    Coronavirus pandemic reshapes employees’ perception of ideal workspace

    According to Skanska’s survey among people in CEE, nowadays nearly half of office workers go to the office every day.

    The same percentage being valid for Romanian employees who have returned to their workplaces.

    18% of Romanian employees work in a hybrid model, with 3 or 4 days a week in the office, while 20% of Romanian employees work only from home.

    Top choice: hybrid model with office work dominating

    For 51% of the employees surveyed, the ideal working model involves at least 3-4 days a week working from the office. This trend is visible in all CEE countries.

    Specifically for the respondents from Romania, 27% would like to work in the  office at least 3-4 days a week, this being their ideal working model.

    Another 22% of them would like to work exclusively from the office and 19 % would prefer to work only from home.

    Offices need to offer more than before

    The most important aspects of remote working listed by CEE employees include the ease of organizing family life (51%), good working conditions at home (48%), and saving time on commuting to the office (45%).

    The study notes several differentiators in terms of what would motivate employees in the four countries to return to the office.

    For Romanian employees, the most important thing is for the workplace to reach high-quality standards, including sanitary ones and the possibility to relax and work outdoors.

    For Polish employees, a first motivating factor would be the possibility to use the restaurants or canteens at the employer’s expense.

    Employees in the Czech Republic and Hungary, on the other hand, want to work in a quiet place or individual, separate rooms for work.

    Hungarians would also appreciate free parking spaces.

    Dream office: comfort, safety, and good IT connection

    Among the first three indicators of an ideal office for Romanians are: very good quality IT equipment (39%) and green, open spaces for work and relaxation (33%).

    Other crucial aspects include a quiet space that allows concentration (32%), professional lighting that does not tire the eyes (27%), separate or individual workspaces (18%).

    Among the barriers that Romanians have regarding returning to the office are the impossibility of serving a warm and healthy meal at work (14%).

    17% do not want to spend their time in a confined space with air conditioning, and 26% fear of getting the virus once they return to the office.

    The study also confirms the great importance of safety issues. The results show that high sanitary standards can encourage working in the offices, while lack of them causes fear of contracting the virus.

    Daily disinfection of the office (41%), lower population density (37%), and non-contact solutions (37%) are the main factors that would positively affect employees’ sense of safety.

  • Skanska to open the first rooftop running track in Romania

    Skanska to open the first rooftop running track in Romania

    Skanska inaugurates the first rooftop runway in Romania. The runway is 280 meters long and it’s located on the roof of the Campus 6.2 and 6.3 buildings in Bucharest.

    The two A-class office buildings in Campus 6 have 11 stories, the track being located on top of them, at a height of about 42 meters.

    The final layer of the track is made out of tartan certified by the International Association of Athletics Federations for use in all international athletic competitions.

    However, the rooftop runway on Campus 6 in Bucharest is not the first of its kind built by Skanska.

    Among the capitals in the Central and Eastern European region where Skanska has integrated this type of employee facility are Budapest (H2Office building) and Prague, where the 150-meter runway on the roof of the building Visionary was launched in 2018.

  • The first signs of a come-back for the Bucharest office market

    The first signs of a come-back for the Bucharest office market

    The volume of leasing transactions on the Bucharest office market increased in Q1 2021 to 48,000 square meters, a 9% decrease from previous year.

    Moreover, the share of pre-lease contracts increased from 20% to 46%, reveals the research data of the real estate consulting company Cushman & Wakefield Echinox.

    In terms of deliveries, in the first quarter of 2020, there have been completed the Campus 6.2 buildings and Millo Offices, the two buildings having a total area of ​​almost 30,000 sqm.

    In comparison, in the first quarter of 2020, new office spaces with an area of ​​79,000 square meters were delivered in Bucharest.

    However, this year’s deliveries will be above the level of 2020 and by the end of this year another approximately 220,000 sqm of new modern office space are expected to be delivered.

    The (leasing) commercial stock of office buildings in Bucharest reaches about 2.98 million square meters

    Other buildings with an area of ​​approximately 150,000 sqm being occupied by the owners, while projects with a total area of 370,000 sqm are currently under construction.

    In this context, the office spaces vacancy rate (contractual) is 13.5%, with a significant difference between A class (10.7%) and B class (22.1%) office buildings.

  • Diaverum moved its offices to Charles de Gaulle Plaza Bucharest

    Diaverum moved its offices to Charles de Gaulle Plaza Bucharest

    Diaverum decided to expand and relocate their operations into a larger, more efficient office space that creates optimal conditions for business development.

    The company leased 765 sqm, almost 65% of the iconic 14th floor of Charles de Gaulle Plaza, with spectacular view to Herastrau Park.

    Diaverum is a leading global provider in renal care services, serving almost 40,000 patients with 6 million treatments annually.

    In Romania, the company has 27 Nephrology and Dialysis clinics and around 1.100 employees.

    FORTIM Trusted Advisors, an Alliance Member of BNP Paribas Real Estate in Romania, assisted Diaverum in the relocation process.

  • 2020, one the poorest years in the last decade for the Bucharest office market

    2020, one the poorest years in the last decade for the Bucharest office market

    2020 was one the poorest in the last decade for the Bucharest office market in terms of demand, reflecting uncertainties generated by the pandemic.

    Overall, gross take-up declined by c.40% compared to 2019 to 214,000 square meters, the lowest level since 2012.

    New demand stood at around 70,000 square meters, according to the 2020 annual report released by Colliers.

    The effects of the ”pandemic year” continue to be felt in the Bucharest office sector in 2021, with a recovery likely to last several years.

    Outside Bucharest, the gross demand in the four major office submarkets – Cluj-Napoca, Timișoara, Iași and Brașov – decreased some 19% in 2020, to 60,000 square meters.

    But, more than half of last year’s take-up came from a single lease, a renewal of over 30,000 square meters in Iași (Amazon).

    These markets hold a cumulated modern office stock of close to 900,000 square meters, less than one third of Bucharest’s, while these cities tend to have a similar pace for job creation.

    156,000 square meters of new modern offices delivered last year

    In terms of delivery, 2020 was a robust year for the Bucharest office market, with some 156,000 square meters of new modern offices delivered.

    Also, there is a big difference compared to the 286,000 square meters seen in 2019, but it is still a fairly robust figure at around 5% of the current modern office stock in Bucharest.

    In 2021, about 250,000 square meters of new modern offices are set to be finalized, with pre-lease ratios at around 40% for new projects at the end of the previous year.

    A positive aspect is that the major additions in 2020 were spread throughout different submarkets, a sign of a mature and stable market.

  • Bucharest office market registered a steady return of demand in Q4 2020

    Bucharest office market registered a steady return of demand in Q4 2020

    In the last quarter of 2020, in Bucharest there were transactions of office spaces with a total area of ​​77,000 square meters, the highest quarterly value of the year.

    The annual volume of transactions reached approximately 237,000 meters squares, according to Cushman & Wakefield Echinox.

    Compared to the previous year, the transactional office area decreased by 39%, while the share of renewal contracts increased from 21% to 45%.

    The most important office project completed in the last quarter of 2020 was One Tower, with a leasable area of ​​24,000 square meters, part of the mixed project One Floreasca City, the total deliveries of new office spaces in 2020 totaling 155,000 square meters, a decrease of 46% compared to 2019.

    The commercial stock (destined for lease) of office buildings in Bucharest amounts to approximately 2.95 million square meters, other buildings with an area of ​​approximately 150,000 square meters being occupied by the owners, while projects with a total area of 350,000 square meters are currently under construction, being scheduled for delivery between 2021-2022.

    In this context, the (contractual) vacancy rate of office spaces is 12.5%, with a significant difference between class A (9.7%) and class B (20.7%) spaces.

    The most important office projects under construction are One Cotroceni Park, J8 Office Park, Globalworth Square, U Center, Miro Offices, Ţiriac Tower, Dacia One, Millo Offices, Expo or Sema London & Oslo, the developers having signed pre-lease contracts for about 60% of the spaces.

  • Skanska invests EUR 45 M in the second phase of Equilibrium Bucharest

    Skanska invests EUR 45 M in the second phase of Equilibrium Bucharest

    Skanska invests EUR 45M in the second building of the Equilibrium office project located in the northern part of Bucharest.

    The 12-storey building will comprise of a total leasable area of 19,900 sqm and 229 parking lots above and underground.

    At its completion, the entire two-building Equilibrium complex will offer 40,800 square meters of leasable area.

    The project has a unique mix of green relaxation spaces, with modern exterior furniture that incorporates wireless chargers, power sockets and free WiFi, but also with numerous facilities to encourage urban mobility and an active lifestyle.

    Construction works are planned to be started in February 2021 and are scheduled for completion in the first quarter of 2023.

    The first phase of the project, Equilibrium 1, became operational on November 1, 2019.

  • 36% of employees think they will return to the office in 2021, along with the entire team

    36% of employees think they will return to the office in 2021, along with the entire team

    More than a third (36.5%) of employees who responded to a recent survey initiated by Genesis Property believe that the entire team within the company they are working for will return to the office this year.

    Most say that offices have become an important part of their job in the context of Covid-19 and over 57% will evaluate this aspect more closely in the future, when they will seek a new job.

    While proximity of the office to their home remains an important factor for most employees (65%), the pandemic year increased the importance of health measures taken in the building (for 51% of respondents) and of the workspace structure, with greater emphasis on delimited offices that facilitate distancing (for 49.3% of respondents).

    At the same time, 41% say that, from now on, they will carefully evaluate what technologies are available in the workplace to ensure better protection for their health and for the health of their colleagues.

    The post-pandemic office: safer and more creative

    Looking ahead, in addition to the health measures that more than 60% of respondents to Genesis Property’s survey consider necessary in office buildings today and in the future, many employees believe there is also room for further changes.

    52% believe that, in the future, offices should provide employees an integrated work, lifestyle, entertainment, and socializing experience.

    Another 45% consider that the current situation represents an opportunity for the integration of technologies based on artificial intelligence which can eliminate repetitive and routine activities whilst redefining how they will work in the future.

    Lastly, 40% want to have the opportunity to work in spaces that give them a better environment to manifest their creativity.

  • Romania: Total volume invested in real estate assets reached €914 million in 2020

    Romania: Total volume invested in real estate assets reached €914 million in 2020

    In 2020, the total volume invested in real estate assets in Romania reached €914 million, a 28% increase compared 2019, according to Cushman & Wakefield Echinox.

    The most active segment was by far the Office sector, with estimated transaction values of approximately €784 million, representing 86% of the total investment value.

    The Industrial segment attracted 9% of the capital, while the remaining 5% were split between the Retail and Hospitality sectors.

    In total, a number of 24 income-producing properties were transacted in 2020, an average of €38 million per property, one of the highest such values in the last decade on the local real estate market.

    Biggest transactions of 2020

    The six largest transactions pertained to office projects, including the disposal of NEPI Rockcastle’s office portfolio to AFI Europe. The transaction consisted of four office buildings in Bucharest and Timisoara totaling 118,000 sq. m GLA, which were sold for €307 million, the largest office deal ever signed in Romania.

    Moreover, the €100 million threshold was exceeded by a number of other office transactions, the most relevant for the market being the purchase of Floreasca Park, a landmark 38,000 sq. m GLA office project, by a joint venture between Zeus Capital Management and Resolution Property (Fosun), marking the entry of Chinese investors on the Romanian office market.

  • S IMMO purchased two office buildings in Bucharest from Skanska

    S IMMO purchased two office buildings in Bucharest from Skanska

    S IMMO purchased Campus 6.2 and Campus 6.3 office buildings developed by Skanska in the Center-West submarket of Bucharest.

    The transaction volume is approximately EUR 97 mln.

    The two buildings have a rentable area of nearly 38,000 square meters and 463 parking spaces. Currently, 99% of the buildings are leased by companies such as Microsoft and Société Générale European Business Services.

    Campus 6.3 has already been delivered in October 2020, and Campus 6.2 is due to be completed in the first quarter of 2021.

    The new buildings acquired by S IMMO, Campus 6.2 and 6.3, increase the office portfolio of S IMMO in Romania to over 73,000 sqm of GLA, together with the existing office buildings, The Mark and Sun Plaza Offices.

    At the end of this year’s first nine months, the total investment volume in Romania accounts for EUR 521.4* mln (*including GTC shares transaction), with office buildings as the most traded sector, accounting for 90% of the total national transaction volume, according to the CBRE Research data.

    At the end of the third quarter of 2020, prime yields remain stable for the office and industrial segments.

  • Bucharest: The occupancy costs of office spaces at 3-4% of the companies turnover

    Bucharest: The occupancy costs of office spaces at 3-4% of the companies turnover

    The occupancy costs of office spaces represent, on average, between 3 and 4% of the turnover of services companies in Bucharest, and they may fall even below 2%, in some cases, according to an Cushman & Wakefield Echinox analysis.

    The analysis takes into account the results from 2019 achieved by companies in various fields, such as software development, advertising agencies, IT consulting, engineering and technical consulting, business support services, accounting and financial audit, architecture or real estate agencies.

    The analyzed companies, whose revenues are mainly generated from work performed in office spaces, achieved in 2019 a total turnover of 8 billion euros, with about 112,000 employees and an average productivity of 70,000 euros per employee.

    The occupancy cost of the office spaces for these companies, consisting of rent, service and utilities tax, was estimated at 255 million euros per year, the equivalent of about 190 euros / employee / month.

    In the context of the Covid-19 pandemic, which imposed a series of social distancing rules to limit the spread of the virus, companies implemented procedures for working from home for most employees, reducing the physical occupancy of offices to the level of 35 – 40%.

    Given that the new working model has come up with a number of challenges, but also with benefits, most companies are currently analyzing how they will operate on the medium and long term, while they carefully monitor the productivity evolution and reanalyze the occupancy costs.

  • Bog’Art is the general contractor of MIRO office project in Bucharest

    Bog’Art is the general contractor of MIRO office project in Bucharest

    Speedwell designated Bog’Artas the general contractor in charge for MIRO, the company’s newest office project located in northern Bucharest.

    The MIRO project will offer its tenants A class office spaces and has a 23.000 sqm leasable area spread out over 5 levels, large 4.570 sqm floor plates and 1:40 parking ratio.

    Presently, approximately 40% of the office space has been leased by KPMG and its employees will move to their new office at the end of 2021.

    The project has been granted the building permit and works have already started.

    Speedwell has a large portfolio of developments in Romania that includes Record Park in Cluj-Napoca, Triama Residence and The Ivy in Bucharest, Paltim in Timișoara, and Riverside City in Râmnicu-Vâlcea.