Bucharest: More and more companies decide to sublet their empty office spaces due to work from home

by Romanian Reporter - Wednesday, January 27, 2021 6:00 PM

Bucharest: More and more companies decide to sublet their empty office spaces due to work from home

Vodafone, Orange, Thales, Genpact, and NNDKP want to sublet a significant share of their rented offices from the corporate district Pipera and the Western part of Bucharest, according to profit.ro. The companies are trying to cover some of the cost paid for the almost empty offices, due to the work from home implemented since the outbreak of the coronavirus pandemic. Vodafone, Orange, and Thales intend to also reduce the rented area after the expiration of rental agreements.

Most of the multinational companies operating on the Romanian market were forced to implement, partially or fully, a work-from-home system for their employees after the state of emergency was declared last year. 

As it became evident that the COVID-19 virus is here to stay and that the vaccine production, as well as the vaccination campaign, is still facing significant challenges, more and more companies are exploring some possibilities to reduce the cost of the rented space, which is now for the most part unused.

For example, Oracle, the largest renter of office spaces on the Romanian real estate market, announced in December last year the intention to terminate the rental contract for its Sky Tower office, where Oracle rents 9 stories

Other companies are trying to sublet part of their offices in an effort to reduce the costs. Profit.ro identified the companies that offer the largest office areas in Bucharest. The 5 companies, Vodafone, Thales, Orange, NNDKP, and Genpact, rent a total area of about 75.000 sq. meters, for which they pay, on aggregate, even if they don't use the space, over €12 million annually. They are now willing to sublet 16.000 sq. meters for about €2.6 million per year. 

The rental prices are similar to the ones offered directly by the landlords, but the offices are being offered already fully-equipped and for a shorter rental period. The minimum rental period is one year, which could be more advantageous than a classical rental, concluded usually for a longer period - 5 to 7 years.

1. Vodafone Romania - 6.000 sq. meters (Globalworth Tower)

2. Thales Romania - 4.000 sq. meters (Orhideea Towers)

3. Orange - 2.200 sq. meters (Green Court Bucharest)

4. NNDKP (Nestor Nestor Diculescu Kingston Petersen) - 1.900 sq. meters (Globalworth Tower)

5. Genpact - 1.800 sq. meters (Hermes Business Campus). Genpact has already sublet 1.800 out of 25.000 sq. meters of its offices in Hermes Business Campus to the market research company GfK.

Renault Group is another example. The car manufacturer moved its 3.200 employees in 2019 in the Renault Bucharest Connected office, owned by Globalworth, but decided last year to sublet some of 42.300 sq. meters office spaces, for which the company pays €5.7 million per year.

Image by Catalin Calin from Pixabay

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