Most Large Office Tenants in Romania Spend Under 5% of Turnover on Workspace Costs

More than 80% of Romania’s largest office occupiers allocate under 5% of their turnover to modern office space, according to new analysis from Cushman & Wakefield Echinox.

The consultancy reviewed the 2024 financial results of 76 major companies across IT&C, professional services, finance, energy, automotive, retail, FMCG, e-commerce and related sectors. Each company occupies over 4,000 sq m in modern buildings across Bucharest and regional cities including Iași, Cluj-Napoca, Brașov and Timișoara.

Together, these firms lease nearly 1.1 million sq m of office space—around a quarter of Romania’s 4.5 million sq m modern stock. Their combined turnover reached €41.1 billion in 2024, with approximately 120,000 employees working largely from these offices.

Annual occupancy costs—covering rent, service charges and utilities—are estimated at more than €260 million, equivalent to roughly €180 per employee per month and less than 1% of the companies’ combined turnover. For 53% of tenants, office costs represent under 2% of revenues, while 31% allocate between 2% and 5%. The remaining 16% exceed 5%, though none approach 10%.

IT&C companies account for 44% of the tenants analysed, occupying 540,000 sq m and generating around €130 million in annual occupancy costs. Financial firms represent 11% of the group, with 180,000 sq m and costs of around €50 million, while telecom operators occupy 47,000 sq m at just under €14 million. These three sectors together represent about 75% of total occupancy costs.

“This is the second time we have analyzed what is the share of office occupancy costs in the company revenues for the largest tenants in Romania, the first assessment being performed at the end of 2020,” said Vlad Săftoiu, Head of Research at Cushman & Wakefield Echinox. “Despite the different circumstances in which these studies were conducted, both illustrate the fact that businesses allocate a relatively small percentage of their revenues to leasing modern office spaces across the country. Moreover, despite recent pressures from minimum wage increases, inflation, and higher physical office occupancy in the last few years, these costs remain significantly below 5% of the companies’ revenues.”

Source: Cushman & Wakefield Echinox