Sun, Nov 22 2009

Forton International latest: office rents are declining by 30 per cent

Wed, Mar 11 2009 12:34 CET byNick Iliev 1070 Views
Forton International latest: office rents are declining by 30 per cent

The economic crunch and financial stagnation has had its impact on the Bulgarian market, particularly as of the last trimester of 2008.
According to statistics released by Forton International, a major Bulgarian real property agency, a decline of between 20 per cent and 30 per cent has been observed in some areas in Sofia and other major urban centres nationwide.

"The trend for rent level growth at the beginning of 2008, which was expected to remain stable, has in fact stalled and then slumped substantially," the Forton International report claims, as reported by Stroitelstvo Gradut.

"Some of the factors behind the decline are explained by the alarming slide in demand, and the subsequent heightened caution of custumers due to the negative outlook of the economy," said Sergei Koinov, executive director of Forton International.

In 2009, potential tenants will have a much greater choice to get more spacious and better located offices for the same budget. Meanwhile, some major investors have also slashed altogether some of their schemes for development and expansion, the report continues.

The latest survey by the global consultant firm CB Richard Ellis reveals that in post-crisis conditions, tenants will benefit from cheaper prices, more attractive locations and greater choices.

Forton International claims that rents outside Sofia's immediate centre are currently offered for between 10 and 15 per sq m. Globally, every market has been affected, without exception, but to a large extent the crisis in Bulgaria has been milder so far.

Source: PropertyWise http://www.propertywisebulgaria.com/article/forton-international-latest-office-rents-are-declining-by-30-per-cent/id_3178/catid_26

Write comment

Name:Comment:

Generate new code
Send your comment
Bulgaria business property deals contracted sixfold – Forton

Office rent transactions peaked at 65 000 sq m between July and September 2008, but collapsed to 10 700 sq m in Q3 2009, Forton manager Sergei Koinov said.

Superfluous supply and weak demand equal 19 100 sq m of new office space on offer

More than 19 000 sq m of new office space have been made available. Additionally, five new shopping malls are under construction in Sofia alone.

BTC signs the biggest office deal in Bulgaria

BTC signs a lucrative 20-year deal with the European Trade Center for 23 000 sq m of office space, making it the largest such deal on the Bulgarian market to date.

Firms switch to cheaper office rents

In the wake of the global credit squeeze, an increasing number of companies are opting for lower office rents or are extending contracts for small spaces to optimise costs

Sofia will have more than 1M sq m office space in 2008

Sofia's office space market registered another quarter of strong performance at the end of 2007, according to the latest MBL consultancy report. The number of class A and B offices continued to grow, amounting to 784 000 sq m as of the end of fourth quarter of 2007, after a new delivery of 48 350 sq m office areas, all of them in suburban areas, according to research from MBL.

Office market in Sofia still under-supplied - Cushman&Wakefield

Despite the expected delivery of 55 000 sq m new office space to Sofia's business property market this year, it will not be enough to meet the existing demand, according to a forecast by business property agents Forton, cited in a research paper by Cushman&Wakefield property consultants. The current lack of high quality space was one of the main features of the Bulgarian office market during 2007. Prime rental levels were unchanged as demand for high quality space remained high. Sofia is the main target for occupier interest, although a number of secondary cities have started to see an increase in an occupier activity.

PROPERTY FOCUS: Sofia office market falling from grace?

Unlike the residential sector, where the property cycle tends to see abrupt fluctuations in supply, demand and pricing, the office property market follows a smoother curve of development, making it more predictable. In 2007 the growth of office space in Sofia continued its upward trend and saw an increase of 28.92 per cent compared with 2006, or about 158 000 sq m of additional offices, according to the

More in this category

New modern marina worth 24M leva to be constructed in Pomorie

The Black Sea town of Pomorie has approved a proposal for the construction of a spacious and modern marina, with a capacity of over 600 yachts and small passenger ships.

Construction sector in Europe continues to decline

Over the course of a year, from one of the leaders in Europe in new construction, Bulgaria became one of the countries currently quagmired at the bottom of the table and was now amongst the three worst hit countries, along with Romania and Slovenia.

Bulgarian Property Developments begin construction of 12.6M euro logistics park in Rousse

The park is posed to act as an economic stimulant in the region, creating a modern infrastructural base for companies. It is set for completion by Q3 of 2010.

Discounter chains Penny Market, Plus open stores in Bulgaria

Both retailers target at least 50 outlets in Bulgaria by the end of 2010.

The big question

When will Bulgaria’s real estate and construction sector recover?

© 2000-2009, Sofia Echo Media Ltd.

Web Design by RIZN

Sofia Echo Media is part of the Economedia Group.
The news and information content on this website is provided by our editorial team and is copyrighted. Any unauthorised reproduction or use of it is strictly forbidden. Reproduction of this website's content is permitted only with prior written permission from the Editor-in-Chief, should be propertly acredited and provide an active link back to our site. Comments posted by the website's visitors are independent of the editorial materials and do not represent the views of sofiaecho.com. Sofia Echo Media cannot be held responsible for the statements contained in visitor comments. The percentаge change in the shares' prices are based on the price of the last transaction of the current session compared to the price of the last transaction of the previous session. Bulgarian Stock Exchange data is not real-time, but updated every 15 minutes, and should not be used as a basis for decisions about buying or selling stock options.