Category: blog

Companies that are looking to outsource their business are often asking for a formula which with to compare the office rentals in Sofia. In case we take two office buildings with the same rental levels per sq.m but different service charge per month, we will assume that the building with the lower service charge is the better one and the one to be taken. But maybe we will be wrong. Before making a decision we should check what is included in the service charge.

One way to compare the rental levels of Sofia Offices and the charges that apply is the method of the open book. This method is based on the fees paid during the 12 months of the previous years and such sum is taken as a base sum for each month. The open book rental contracts usually enumerate all the expenditures – security service, technical support, landscaping, video surveillance, etc. Other issues that have to be taken into account include how often that Sofia office in particular is being cleaned.

The companies which are willing to outsource their business in Sofia should be aware of the service charge and of the utility charges. The service charge includes the expenditures made for the proper functioning of the building. They include facility management, security service, technical support, building taxes, etc. The utility expenses include electricity bills, water bills, heating / air-conditioning bills, etc.

The Sofia offices of the highest class A, which are on demand by so many of the international companies that are outsourcing their business to Bulgaria, are not many in number. At the same time new first class office buildings in Sofia are not planned. That is why finding a suitable office in Sofia with all the facilities is not easy. The main search is for office of class A in Sofia and not for offices of any kind. Yet Sofia office buildings of class A that are in good locations come with almost no supply.

Sofia is yet among the most sought after destinations for outsourcing of the business. That is so, since the costs for renting and office in Sofia and paying for all the expenditures is quite low. It should also be mentioned that the number of skilled professionals is also impressive and that all of them are fluent at least one foreign language.

The offices of class A in Sofia that come with prime location are usually sought by companies from the high-tech sectors and the outsourcing sectors. The rental levels of the prime Sofia offices are between 13 and 15 Euros per square meter per month. For 2015 are expected to be released only three new buildings of the highest class A that met the highest standards. That is why there is an expectation for the rental levels of Sofia offices to go up.

The real estate market for the commercial and the office buildings in Bulgaria is showing quite an excitement since the beginning of this year. According to the real estate experts, the investors are looking towards offices and commercial properties as a result of the accelerated recovery of these markets that became effective last year. In 2014 assets that are worth 239 million Euros have changed their owners and most of the transactions were related to financial restructuring of the debts.

Since year 2014 and until that moment has been noticed a serious and lasting recovery on the Sofia office market with a growth of more than 40% in the acquired areas compared to the year before that. The offices in Sofia that were rented or purchased were over 154 000 sq. m, which is almost 30% up than the office premises in Sofia that were rented or sold two years ago. Currently the main engine that drives that need is the interest towards the offices of class A, which have easy to reach and very communicative locations, as well as all facilities that are required by the expanding international companies.

The prognosis for 2015 made by almost all realtors working on the Sofia office rental market are for increased rental levels. According to the real estate agents from different consulting companies, the offices of the highest class A will be offered for rent at approximately 13 Euro/sq.m. Even if being the most expensive ones, these Sofia offices of the highest class A are still the ones in greatest demand due to their amenities and efficiency indicators.

The data provided by the realtors reveals that the large office buildings in Sofia only 4 % of the office premises are still available. It should also be noted that large offices in Sofia with more than 2000 sq.m are extremely hard to find. The prognoses for 2015 that concern the office market in Sofia are for an increased demand for office premises of the highest class A. The companies that show strongest interest towards the office market come from the outsourcing and the IT sphere.

The realtors today often speak about interest towards the Sofia office market and increased number of the investors, mainly large international companies looking to outsource their business. In general the Sofia office market goes through lasting period of recovery and faces a positive trend ahead. The share of the vacant office premises in Sofia has fallen with nearly 30 % in the last quarter of 2013 to 26 % for the last quarter of 2014. That is so due to the strong interest towards the office premises of class A and the expansion of the international companies which have decided to outsource their business in Sofia.

The rental levels of the Sofia offices vary between 10.5 and 13.5 Euro/sq.m. and the number of available office premises is dropping down. The investments in office buildings for 2014 have increased and many office projects that were postponed are now being restarted. Bulgaria and its capital Sofia is now only provoking the interest of the companies that wish to start a business in the area but are also managing to keep that interest, which is expected to bring many new investments.