1/2 MAJOR OFFICE BUCHAREST METRO SUBMARKETS AROUND 73,200 METRO STATIONS AND THE REAL ESTATE 359,800 7.70 n Number of metro trips initiated (mil., 2018) n Modern office GLA within 10 minutes of metro CONNECTION station (sqm) AUREL VLAICU 4.67 n Modern office pipeline within 10 minutes from 53,500 metro station (3Q19-4Q20) 510,200 AVIATORILOR In a city like Bucharest, regarded as one of the the authorities handled building the Drumul Taberei 6.40 38,400 most congested in the world by the navigation - Universitate metro line (where tendering started 30,000 technology company TomTom, for a lot of people, in 2008 and it is possible that works will not be 1.58 life gravitates to a huge extent around the finished even this year). functioning public transportation components. 1 MAI PIPERA 7.19 Residential, offices and retail schemes get Furthermore, some developers have explored land 214,900 a significant boost from a connection to the plots near stations (Tineretului, Jiului) that are 20,000 subway, which is arguably the most efficient not part of the traditional office submarkets and we will see offices being built there. Of course, and comfortable means of public transportation PIATA in Bucharest. Occasionally, underpinned by the this might be a trend limited to central, northern VICTORIEI metro, major mixed-use areas are born, helping and western locations as southern and eastern 136,100 Pipera 15,700 cement deep synergies. locations continue to be seen primarily as destined 1.78 Aurel Vlaicu for residential. In this regard, for the foreseeable 1 Mai We focus in this report on the office market. future (at least several years), any big changes are PETRACHE 5.93 25,200 Given what we stated previously regarding the unlikely. Otherwise, developers will continue to PEONARU Aviatorilor importance of a metro connection, we calculated walk off the beaten path and over the next decade, 41,300 Piaţa Victoriei that around 2 million sqm of Bucharest’s 2.6 we may see a handful of medium-sized office million sqm of modern office spaces are within a buildings near several subway stations outside the PIATA 2.83 122,000 ROMANA reasonable (10 minutes) walking distance from a big office hubs. Still, these will not be enough to Petrache Poenaru Piaţa Romană subway station. Or around 77% of total, which is be deemed a submarket in their own right, rather Lujerului Grozăveşti identical to the figure our colleagues in Czechia extensions of neighbouring ones. Universitate came up with recently when looking at the Prague PRECIZIEI Politehnică Preciziei Piaţa Unirii 2 metro map. Also, some 0.9 million sqm are closely The definitive measure of success for metro- Piaţa Unirii 1 located around two neighbouring (and adjacent) connected office buildings is the vacancy rate. For stations in the northern part of Bucharest – the the 77% of leasable modern office space close to 6.52 subway stations, the end-2018 vacancy rate stood 4.86 9,200 so-called Floreasca/Barbu Vacarescu and Dimitrie 62,000 Timpuri noi Pompeiu submarkets. It is important to underscore at around 7% (market average of 9.5%), whereas 36,200 that the other fast-growing submarkets, like for the rest of the 23%, it was over 19%. We are UNIVERSITATE Center West, are much more dispersed, with office currently in the midst of calculating the mid-2019 LUJERULUI buildings there around several subway stations. figures, though it is likely that this gap between This can be both a blessing and a curse: while a buildings with subway connections and those bit crowded, areas like Floreasca/Barbu Vacarescu without only widened as a sizeable relocation took offer the advantage of a wide array of services place recently. Over the medium term, this gap is 58,400 available in the near vicinity for employees, as well likely to hold, leading to a more layered market in 4.14 a potential proximity to one’s businesses partners terms of both rents and investment products. 121,100 and suppliers. 3.87 POLITEHNICA 69,600 We also want to note that good land plots for office developments are becoming scarcer/ TIMPURI NOI more expensive (particularly in central areas) 13.33 20,000 146,600 and given that construction costs in general 77% 2.92 have risen sharply in recent years, the incentive OF LEASABLE MODERN for developers to jump in are diminished. In this GROZAVESTI context, some have explored locations around the OFFICE SPACE IS CLOSE TO 55,100 planned extension of the metro linking Bucharest SUBWAY STATIONS to the International Airport just north of the city, PIATA UNIRII but the subway works are unlikely to be finished in the first half of the next decade, judging by how BUCHAREST METRO AND THE REAL ESTATE CONNECTION 2/2 GARA DE NORD AUREL VLAICU PIPERA OFFICE SERVICES 5.54 The HQ district of Bucharest, with just around The city’s largest office submarket, with +7.3 Station revolving around 7.70 +17.6 0.4 million sqm of modern office spaces, a well over 0.4 million sqm of modern office Bucharest’s major railway station. 6.40 +14.9 fast-growing residential scene and a mall spaces densely packed. Primarily a BPO/ YOUR OFFICE IS YOUR BUSINESS ACCELERATOR having deep synergies with the latter two. SSC destination. Whether you are an office owner or tenant, your space PIATA VICTORIEI is one of your most valuable assets. Our team will help you optimise this asset in order to accelerate your 7.19 Bucharest’s traditional CBD and ground business and help you stay ahead of the competition. CRANGASI zero in terms of public administration; +3.2 With the full package of advisory services in one also an important transportation node. One of Bucharest’s traditional place, ranging from office leasing services, workplace solutions and project management, we provide 6.33 residential areas, though not expanding significantly anymore; also knowledge, experience and a broad skillset that meets an important transportation node. your every need throughout the lifespan of your project. -4.7 PIATA ROMANA 5.93 Central area, academic hub with some office CORE SERVICES developments as well as a leisure destination. Pipera -1.8 PIATA UNIRII Aurel Vlaicu Major node in public transport, LANDLORD 13.33 TENANT big mixed use area (office, retail, REPRESENTATION REPRESENTATION residential), including close proximity to Bucharest’s hip Old Town, full of OBOR pubs and restaurants. Piaţa Victoriei 6.16 Heavy residential area, near one of Crângaşi the city’s largest’s food markets. Gara de Nord Obor -8.5 PROJECT WORKPLACE Piaţa Romană MANAGEMENT SOLUTIONS Universitate -10.7 Piaţa Unirii 2 EROII REVOLUTIEI Piaţa Unirii 1 Dristor 2 Dristor 1 Major residential area, offering transit 5.25 for people working in the northern FOR MORE INFORMATION and western parts of the city. PIATA UNIVERSITATII Eroii Revolutiei City center and major academic hub, near 6.52 SEBASTIAN DRAGOMIR -2.3 Bucharest’s bustling Old Town, with some office Piaţa Sudului space, though not in the immediate vicinity. Board Member Head of Office Advisory | Romania +4 0734 303 158 -4.0 [email protected] BUSIEST METRO STATIONS IN BUCHAREST AND THEIR REAL SILVIU POP DRISTOR Head of Research | Romania ESTATE CONNECTION [email protected] 8.20 +16.8 Important regional node, heavy area in +4 0721 176 701 terms of residential and virtually non- n Number of metro trips initiated (mil., 2018) existent modern office stock. n Metro trips (2018/2016, %) PIATA SUDULUI 7.11 Gathering point for one of the densest populated Transportation Retail Office parts of Bucharest, anchored by one of the city’s Node dominant shopping centers for this region. Academic Residential Leisure Hub -9.6.