The Bulgarian office space market will reach saturation point within the next three years, an outlook that means some properties will have vacancy problems while others will make it off the drawing board, said Sergei Koinov, CEO of commercial real estate services provider Forton International. There is still an undersupply of premium office space with quality starting to have a stronger influence on the choices made by prospective tenants, said market watchers.
The current stock of office space on the market totals 718,000 sq m across the country. Another 780,000 sq m are under construction with a further 740,000 sq m at project phase. The market will deliver a 20% annual growth, outpacing the expansion of the Bulgarian economy, noted Koinov. In his view, over the next three years, only half of the projects on paper or in some stage of development will find tenants.
Going forward, the real estate consultants expect to see two distinct stories to unfold on the office market. Premium office developments aligned to contemporary eco and energy efficiency standards will have no shortage of occupants while properties of inferior quality will struggle to fill their vacancies.