Griffes ranked 2nd most active office rental agency in 2021
Griffes ended 2021 with a significant increase in office leases, placing the agency in 2nd placesd the most successful real estate player in the intermediated office rental segment in Romania.
This achievement crowns Griffes’ 5 years of activity in the Romanian real estate landscape, which the company celebrated at the end of the year. The team significantly expanded its activities throughout 2021, expanding into land sales and industrial leasing by commercializing a large-scale project to be developed next to Budapest Airport in Hungary.
In 2021, the Griffes team closed a total of 43,000 m². office rental transactions in Bucharest and regional cities, representing 15% of the total of 290,000 m². rented by all agencies in Romania during the year. Griffes signed the biggest move (and biggest deal of the year) with Wipro choosing Globalworth’s Square to pin its new headquarters – over 11,000 square meters.
They also managed the largest new entry in the office segment (Allyis Technologies chose a 1,500 m² office space at AFI Park to set up its first head office in Europe).
The total value of all office leases signed by Griffes in 2021 is close to 40 million. euro, covering Romania as follows: 69% in Bucharest and 31% in regional cities. Griffes’ activity continued to focus on the desktop Owner representation, where the company is currently the market leader, with more than 75,000 m². under exclusive mandates – from land acquisition, design advice, rental strategy and sale. Other important pillars are Representation of the tenant and To install services, by advising tenants in their real estate strategy.
Digitally, Griffes has completed more than 90 transactions since its inception in 2016. Over 60% of transactions represent new leases, reflecting Griffes’ experience in providing customized solutions and facilities for new businesses coming to Romania or seeking to make the leap from an atypical office. places in premium class A accommodation.
More than 80% of the Griffes team’s activity has been driven by advice and transactions, of which 90% is office rental and the remaining 10% is land transactions. Considering the peak of activity in office rental (aggregate agency data shows an estimated growth of 25% to 30% in Bucharest in 2021, compared to 2020), it is natural that the majority of transactions were motivated by the needs of offices in the remodeling process (including work from domestic models). Thus, subletting only represents 2% of Griffes’ activity. The largest transactions were triggered by IT tenants consolidating and optimizing their operations.
Concerning the offer of the office market, 250,000 m². new office buildings were delivered in 2021. From 2022, we will be faced with a drop in new supply, mainly driven by the blocking of obtaining building permits by private investors. The slowdown will be reflected in deliveries, so we anticipate an impact (reduction) of 50% of the office supply in 2022, followed by a more marked drop, of 75%, in 2023. The blocking of permits will be more visible in the capital, with less than 60,000 m² announced for 2023, and already under construction.
Regional cities will follow their upward trend. They now represent 1/3 of office rental transactions managed by Griffes, in addition to land and industrial transactions which are continuing at full speed. While average land prices in Bucharest are experiencing increases of 30-40%, in industrial development we hardly see transactions below the psychological threshold of 35 Eur / m². Last year alone, Griffes concluded 4 land sale transactions, 3 of which were for industrial purposes (Brasov and Ploiesti) and one for residential purposes (Bucharest).
“In 2021, we took new steps, because we were agile and open enough to take on new challenges; we added 4 office mandates: Paltim Timisoara, the separate Muse north of Bucharest and 2 new brownfield projects outside the capital. We took the risk of advising our clients to put their money in Romania in certain anti-cycle movements, such as Allyis Technologies and. another major new player, both have invested over 3 million euros in the Romanian market. We have extended our services to the land and industrial segments and we have also exported our capabilities across borders, while the only trend we have seen is multinationals crossing the border and delivering to Romania. We have the luxury of doing things differently and we can afford to be bold in our business decisions, which is also reflected in the results for our clients: we provide them with a fresh, unbiased and unexpected view of market opportunities. summarizes Andreea Paun, founder and general manager of Griffes.