Office rents fell further this year, by 5% in the first quarter to below €10.sqm for decentralized locations, and are expected to remain subdued at least until mid this year when they will reach the bottom of the cycle most likely, according DTZ Echinox estimates.
“Prime rental levels are €19-20 per sq m per month for buildings located in the centre area, €14-17 per sq m per month for semi central locations whilst rents for decentralized areas were in range of €9-13 per sq m per month”, the real estate consultant said in a report.
“According to our estimations, we expect to see further rental decline in the short term with rents expected to hit the bottom of the cycle in the second half of 2010”.
Vacancy rate has also remained high in the January-March period, and stood above trailing quarter level of 18.08%. “The north area registered the highest level of vacancy, of 40%, due to the high volume of deliveries, whilst the central area currently reports the lowest – 10%”.
The total take-up rate for 2010 could reach 190,000 sqm, 46% increase compared to previous year.
DTZ Echinox consultant assisted in the deals: the takeover by Sanador of a building on Sevastopol street (11,735 sqm), the relocation of Avon Cosmetics to Eurotower (1,200sqm) and the 4,000sqm lease by ING from Amerca Goroup in building that will serve as a regional back-office hub for ING in Cluj.
