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: