Thanks to several larger deliveries, the stock increased to 1.761 mln sq. m. The space under construction rose sharply to 265,000 sq. m, which is the highest level since 2012. The majority of the projects, or 142,000 sq. m, are scheduled for delivery in 2017, but half of them are already pre-leased.
The vacancy rate fell to 10%, as the demand for quality office space remains high and the supply is still not catching up.
The net absorption was 35,300 sq. m in Q4 2016 and 86,500 sq. m for the whole year. The take up was ca. 15,000 sq. m on a quarterly basis, bringing the total for the year to 125,000 sq. m.
The average asking rental rates for Class A office space increased by 4.5% compared to Q3 2016, mostly due to new available space coming to the market and offered at higher rates. The average asking rental levels are in the range of €12 - €14 per sq. m for Class A, while rents for Class B vary between €6.5 and €9 per sq. m.
For further market highlights review MBL Office Sofia Q4 2016: