Offices & Business Parks: The total stock of multi-tenant and speculative space continues to grow at a steady pace. The total inventory of Class A and B space amounts to 606,500 m2 shows Colliers International H2 Market overview, with the majority located in the suburban areas. This represents a 10% increase in the first half of 2007.

The overall vacancy remained unchanged at 5.1% with increases in suburban areas and decreases in the broad center and Central Business District (CBD). With more than 330,000 m2 Class A and B office space under construction in the suburban areas, vacancies might increase in the coming periods.

Demand for office space is characterized by expansion and relocations, with few international market entrants shows the report from Colliers.

Asking rental rents continued the upward trend in the first half of 2007. The most significant growth is seen in the broad center, where rents almost match those of the CBD. This situation is caused by few, but large transactions in the CBD which suppressed the increase.

Class A properties command asking rents ranging between € 12 – 26/m2/month across all sub segments.

Retail: Retail is still the most dynamic commercial real estate sector in Bulgaria according to the latest market overview published by Colliers International. The active shopping mall pipeline increased by 138,500 m2 Gross Leasable Area (GLA) and amounts to 201,000 m2 under construction by the end of June 2007. The six existing projects have a combined GLA of 105,500 m2. Except for few schemes with poor concept design, all major shopping centers enjoy full occupancy.

Three new shopping developments broke ground in the first half of 2007; Carrefour Mall in Sofia, Serdika Shopping Center also in the capital and Mall Stara Zagora. The market has seen the recent entrance of experienced, international developers with significant projects.
Varna has attracted a remarkable number of shopping mall developments and is shaping up as a very competitive market with five projects within a one-kilometer radius.

High street locations in Sofia continue to command the highest asking rates, with rents ranging between € 20 – 125/m2/month versus € 30-55/m2/month in the shopping centers and malls according to Colliers report.

Logistics & Industrial: Industrial real estate is shaping up as an attractive segment in the eyes of developers. Colliers H2 2007 Logistics & Industrial Market Overview shows that several speculative projects are under construction or in the final stages of planning. This will over time change the current disproportional share of owner-occupied and build-to-suit space on the market.

By the end of June 2007, the stock of speculative space in the Sofia region was 160,000 m2 or 13% of the total inventory. Rental rents for prime, contemporary industrial space remains stable, and continues to range between € 3.8 – 5.5/m2/month.

Colliers International is a leading international real estate consultancy with more than 260 offices in over 50 countries. Worldwide Colliers manages more that 65 million m2 and has over 10,000 highly qualified professionals.