Yearly Archives: 2013

The number of available offices in Sofia has dropped, since the interest towards them is serious for the first time after the start of the global financial crises. The Sofia offices that are now available are around 20% from the total number of offices in Sofia or around 350 000 sq.m. Around 70% of the available office premises in Sofia are positioned in business buildings outside the center of the capital. Since the beginning of the year have been rented almost 76 000 sq.m of office premises which is an increase with 150% compared to the first half of 2012. The companies which are in search of offices in Sofia come from the outsourcing sector mainly. These are large international companies that are coming to Sofia for the low rental levels, the easy process of company registration in Bulgaria and the low taxes. These companies are renting the offices of class A, which offer many facilities and modern extras.

According to the real estate specialists, there are 18 office centers in Sofia of the highest class, which correspond to the international requirements for the quality of construction, the easy access with automobiles and public transport, etc. The offices that the investors like most are set along “Tsarigradsko Schousse” Blvd. and “Bulgaria” Blvd., as well as near the Sofia Airport and the ring road. The rental of Sofia offices varies from 9 to 12 Euro/sq.m depending on the location.

According to real estate company Colliers, in the first six months of the year were rented more than 75 000 sq.m. of office premises. This means that the number of the available offices in Sofia is decreasing and has dropped with 12% for that period. Currently, the available office premises in Sofia are around 348 000 sq.m. The research shows that there is a serious interest by many international companies and outsourcing companies which are looking for offices of high class in Sofia city. At the same time, year 2013 started with low level of activity in the construction of new office premises. The Sofia office buildings that were completed in the first half of the year had total area of 34 000 sq.m. and at the same time no new office projects were started. Currently are being constructed 190 000 sq.m of office premises, which will be completed next year. These offices will be part of two office centers – Bulgaria Tower on “Bulgaria” Blvd. and Capital Fort on “Tsarigradscko Schousse” Blvd.

Sofia offices that are on demand are those with good location, placed in office centers and business centers with many extras. The companies which are looking for offices in Sofia city work in the sphere of software, pharmacy, trade, call centers. The two large companies that entered the office market in Sofia are Covance Medical in Bulgaria House office center and Servantes Institute in Sveta Sofia business center.

According to a research organized by the International company for management of trade and office premises Tishman International, there is a demand for business premises and offices for rent in Sofia, the capital of Bulgaria. The potential investors in Sofia office buildings come from all parts of the world, being intrigued and attracted by the flat income tax and the well-educated staff with good knowledge of foreign languages. Jullian Edwards, the managing director of Tishman International confirmed that and talked about the region's prospects in the online based forum for international real estate and investment RINFOR.

According to Mr. Edwards, the company he presents had several inquiries from global financial institutions, pharmaceutical and insurance companies, call centers, and also manufacturers who are interested in the opportunities that are offered by Bulgaria. He further stated that Sofia city is attracting major companies with worldwide reputation and this is despite the current political situation. Tishman International company confirms that the available office premises of the highest class A in Sofia city are not many and they hope that the new office projects in Sofia that are about to be completed soon will give more opportunities to the prospective investors.

As part of the Central European office market, the offices in Sofia are in demand. The investments made in business properties in Central and Eastern Europe has reached 3.7 milliard Euro for the first five months of the year which marks 30 % increase compared to the first half of the last year. These data was provided by the consultancy company CBRE and were presented by Investor.bg website. The increase in the sales of offices in Sofia and the rest of Europe, as well as the increase of the rental of Sofia offices are due to the strong market in Russia. The Russian investors are heading towards the business properties and the office premises in Sofia and in the other capitals in Eastern and Central Europe. Still valid is the tendency according to which the investors are looking for high-class office premises with many extras and facilities.

The companies in Sofia which are looking for office premises show interest in the modern business centers, however they are also interested in the small individual offices in the very center of Sofia city. The prognosis are that once the situation in Bulgaria allows for more investments to be made these companies will move towards the new office buildings in Sofia, even though they are outside the very center of the capital. The companies are attracted by the office centers in Sofia which have parking area, 24-hour security service, management and service team and other comforts.

The “green” office buildings in Sofia are quite competitive according to the real estate agents and property managers. According to them the successful management of the business buildings in Sofia depend on many factors. They include not only the effective management policies, but also the usage of innovations. The office building A2, which is part of Sofia Airport Center is an example of such successful practices. That is why it was won the prize “Office building for 2012” in the categories “Green Building” and “Public buildings with business functions”. The office building of Sofia Airport Center corresponds to all the requirements applied in the construction of “green buildings”. The process starts right from the planning and requires the building to be constructed in such way as to protect the environment. The systems used in the green buildings are innovative and ensure a healthy environment for all the employees, despite that they are also energy efficient.

The green office space in Sofia is characterized with healthy environment and microclimate and more effective work of the employees. Further, the costs that the tenants need to pay are much less than in the regular offices in Sofia city. There are indications from some of the foreign investors that they need certified green buildings for their Sofia offices, once they register a company in Bulgaria. They consider this an important factor in their decision to enter the market of the country. The rental prices of the “green office centers” are determined by the market, but in general they require affordable rent and save money on monthly costs.