OFFICE SPACES OVERVIEW Q2/2016, PRESENTED BY MBL|CBRE MARKET HIGHLIGHTS

OFFICE SPACES OVERVIEW Q2/2016, PRESENTED BY MBL|CBRE MARKET HIGHLIGHTS

OFFICE SPACES OVERVIEW Q2/2016, PRESENTED BY MBL|CBRE
MARKET HIGHLIGHTS

• The vacancy rate continued its trend down to 12.1%. As in previous quarters the changes in vacancy rate were felt the most in Class A in the CBD, where the current supply is limited;
• The stock stabilized at 1.73 mln sq m. At the same time, the space under construction increased by 19,000 sq m, returning back to the level observed in mid-2015. The larger part of the pipeline is scheduled for delivery in 2017;
• The net absorption in Q2 2016 was 3,800 sq m, much lower than the one recorded in Q1. Traditionally, with a few exceptions, the second quarter has always been slower in terms of net absorption. The take-up was 23,000 sq m, slightly lower than Q1;
• Average asking rental rates for quality office space increased by 0.8% compared to Q1 2016, mostly due to Class B buildings in CBD and suburban areas. Interestingly, the gap in asking rates for Class A properties between CBD and midtown is closing. The average asking rental levels remain between €11 - €14 per sq m for Class A and €6.5 - €8.5 per sq m for Class B

          For further market highlights review MBL OFFICES SOFIA Q2 2016: Office Sofia Q2 2016

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