Belgrade Research Forum presents the market parameters indicative of Q1 2013, in terms of total office take-up, prime office rents and yields.
Q1 2013 marked overall gross take-up of 15,559 sq m, which represents a 67% rise as compared to the same period last year, i.e. 57% rise as compared to Q4 2012. Namely, the total take-up comprises 8,959 sq m of new lease acquisitions, 1,300 sq m of realized expansions, and 5,300 sq m of rent renewals. The first three months thus noted 26 transactions in total, whereby the average deal size was 598 sq m. There were no owner-occupied deals within Q1 2013.
When analyzing demand per sectors of business, traditionally strong sectors in this quarter were IT and pharmaceutical companies, whereas the largest share was marked by public sector with 41%. Location-wise, over 80% of the lease acquisitions were realized in New Belgrade area.
Rents and Yields of A Class Office space
Prime headline rents marked no increase in Q1 2013 and remained at the Q4 2012 level, ranging between 14 and 16 Eur/sq m, whereas the prime office yield is considered to be between 9 and 9.5%.