Оffice space market in Sofia for Q1 2019
A new report on the office space market in Sofia for Q1 2019 was issued by MBL.
Some of the more interesting highlights include:
The vacancy rate has increased (slightly) for the first time in 8 years – up to 9.5%. This percentage will most likely continue increasing marginally until the end of the year. However, in 2020 we expect another decrease in vacant areas due to the limited number of construction which started in 2018;
Average rental rates remain stable. We expect this trend to continue at least until the end of H1 2019:
- The average asking rental levels for Class A office buildings are between €12 - €14. Currently the highest asking rents in Sofia are concentrated in the office hubs around The Mall and Paradise Center;
- For Class B these are €8 - €11;
5 new office buildings were completed in Q1 2019 for a total of 70,000 sq. m. Additionally, 110,000 sq. m. of class A office space are expected to be completed by the end 2019;
Construction activity is concentrated in the areas of Tsarigradsko Shosse Blvd., near Business Park Sofia and Paradise Center.