The new office space in Sofia completed in the first half of 2019 was about 107,000 m2, according to data from Cuѕhman & Wakefield Forton. The trend for leasing buildings still under construction continues to dominate the market.
The total built stock of class A and B space reached 1.925 million m2, and IT and BPO companies remain the most active tennants on the market. Because of their dynamic growth, they seek larger spaces or spaces to bring their units together.
In the first six months of the year, the available office space in Sofia was about 9.9%. It is expected activity on the lease market to grow over the third and fourth quarter, and the long-term forecast is for a slight increase in the available spaces, which will then lead to a reduction in asking prices.
The assessment of Сuѕhmаn & Wаkеfіеld I Fоrtоn is that the office space market in the capital has entered a mature phase with a steady demand and activity. There is a slight increase in unoccupied premises of Class B since tenants are interested in improving their working environment by migrating to Class A space.
In the second quarter of 2019, the office space under construction in Sofia 404,000 m2. According to Cushman & Wakefield Forton, 90% of these projects are located on key boulevards and in areas with good transport connections.
Rents for prime office space in Sofia were stable in the first quarter – EUR 15/m2 for central business districts (CBD) and EUR 13-14 / m2 for non-CBD areas. Prime office yields remained stable at 7.5-8% in the first half of 2019.
You can find all data about the first half of the year of Сuѕhmаn & Wаkеfіеld I Fоrtоn here.