DTZ: Modern office space in Bucharest reaches 2 mil sqm. OCTAGON to deliver two more buildings in 2014

Modern office space stock in Bucharest reached 2.114 million sqm, at the end of June, around 3% of this area accounting for new office space deliveries. In 2014, 132,000 sqm of office spaces will be delivered, approximately 60% of this area being pre-leased. In the first half of the year five office buildings were delivered, with a total area of 68,500 sqm, most of them being located in the west of the capital.

Hermes Business Campus

OCTAGON CONTRACTING & ENGINEERING has been one of the main office space constructors in the past two years. The company has started the year by delivering building B of the office complex Hermes Business Campus (5- 7 Dimitrie Pompeiu Blvd.), were OCTAGON was general contractor. By the end of 2014 OCTAGON will complete another two office projects: PC Business Center (7- 9 Bucharest- Ploiesti Road), where the company performed infrastructure works and is currently performing superstructure works consisting in concrete superstructure works (encasing, reinforcement, concreting) and metal structure works at building B of the complex Green Court Bucharest (2- 4 Garii Herastrau St).

Office building vacancy rate in Bucharest has slightly declined this year to 15.7%, 330,000 sqm being vacant, although a record rental volume was registered in the first six months. Most of the rental volume was generated especially by relocations, according to real estate consultants DTZ Echinox. Vacancy rate dropped by one percent quarter on quarter, reaching 15.7% at the end of H 1 2014. This is a 0.8 per cent

PC Business Center

decline on the same period of last year, when the vacancy rate was 16.5%.

Right now there are 333,000 sqm of free office spaces in Bucharest, over 30% of them being located in Pipera. Yet, the highest occupancy rate decline quarter on quarter was registered in Pipera, against the other areas in Bucharest - 4%, at the end of the first semester. The vacancy rate in Pipera is now 21%. In Pipera Sud area (Dimitrie Pompeiu St.) the vacancy rate is 8.5%, while in CBD (the central business area) and in west, the vacancy rates stands at 8%, reads a DTZ Echinox press release.

The center- north area has a vacancy rate of 16%, while Barbu Văcărescu – Floreasca area, with a 254,000 sqm stock, reached a vacancy rate of 14% at the end of the first semester.

Green Court Bucharest

The total volume of rented office spaces reached 108,000 sqm in the first half of the year, 25% higher than the volume reported for the same period of 2013. This is the highest rental volume registered within a semester, since 2008, without taking into account the investment made in 2010 by Petrom in its own office building.

Relocation transactions keep dominating the market, accounting for 72% of the total rental volume. New demand – expansions and new comers on the construction market – is 40% above the value registered in the same period of last year and accounts for 28% of the total rental volume.

Prime rents remained stable in the first six months of the year, with variations from 16-18 euro/sqm/month in the central business area, to 15-17 euro/sqm/month in center- north, declining to 12-15 euro/sqm/month in semi- central areas, and to 9 - 12 euro/sqm/month on the outskirts.

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Skanska secures first tenant in building B of Green Court Bucharest complex, built by OCTAGON

Green Court Bucharest- building B 2

Skanska announced the leasing of the first office space in the second building under construction near the intersection of Barbu Văcărescu-Pipera Road, Capital writes. OCTAGON is the constructor of the building and is currently performing concrete and metal structure works.

Sanofi, one of the biggest medicine producers in the world, that owns Zentiva factory in Bucharest, has rented a space of around 2,200 sqm. The company will move into the new headquarters in June 2015.

Green Court Bucharest- building B 3

„We are currently performing structure works on building B and we will soon begin façade works.” said Marcin Łapiński, the president of Skanska Property Romania.

So far, Skanska has rented approximately 19,000 sqm of the whole Green Court Bucharest Complex. The first building, with a 19,500 sqm area, has been 88% rented by Orange România and Schneider Electric. Building B will have a 18,000 sqm leasable area.

Green Court Bucharest- building B

Building B is the second on the three buildings of the complex. OCTAGON has also delivered building A, where the company performed infrastructure works (diaphragm walls D 600; crown beams; anchors), concrete structure works and superstructure works. Building A has 15 floors. OCTAGON contract for this building has been supplemented with exterior works: construction of access stairs, access ramps for people with disabilities and protection fences.

Green Court Bucharest will have a total leasable area of 52,000 sqm. The complex, developed by Sweedish company Skanska will be LEED Gold certified.

OCTAGON construction works have reached the 10th floor of Green Court Bucharest- building B

Green Court Bucharest - building B

Construction works to building B of the office complex Green Court Bucharest (2-4 Gara Herastrau St.) have reached the 10^th floor of the total 13 floors. OCTAGON team have worked at a very fast pace and

Green Court Bucharest - building B

have managed to build the 10 floors of the superstructure in only 4 months.

Right now OCTAGON is performing concrete structure works: encasing, concrete reinforcement and metal structure works. “Concrete structure works have reached the 10^th floor and metal structure works have reached the 6^th floor.”  said Mihaela Moraru- CTCC engineer.

Green Court Bucharest - building B

Building B is the second on the three buildings of the complex. OCTAGON has also delivered building A, where the company performed infrastructure works (diaphragm walls D 600; crown beams; anchors), concrete structure works and superstructure works.

Building A has 15 floors.

Green Court Bucharest - building B

OCTAGON contract for this building has been supplemented with exterior works: construction of access stairs, access ramps for people with disabilities and protection fences.

Green Court Bucharest - building B

Green Court Bucharest will have a total leasable area of 52,000 sqm. The complex, developed by Sweedish company Skanska will be LEED Gold certified.