Sofia Office Market Sentiment Report May 2012
Feb 08, 2016
Sofia Office MarketSentiment Report
May 2012
2
Methodology
Type of research Quantitative
Method Online survey
Fieldwork Period March 2012
Sample size 307 companies
3
Executive summary (1 от 2)
Participants in the survey share positive attitudes toward the Bulgarian economy’s development in2012.
The target companies are also optimistic about the development of the industry they operate in andconsider that 2012 will keep the same pace as 2011.
36% of respondents assume an increase of their income.
57% will keep the same number of employees, while 20% even intent to increase their personnel.
Around 90% of the interviewed companies stated that the supply of office space exceeds the demand.
The respondents align as top 5 high quality office projects the following ones:
Business Park SofiaEuropean Trade CenterSopharma Business TowersMegaparkSerdika Offices
4
Executive summary (2 от 2)
As determinant characteristics of high quality office project, respondents defined:
Environment and convenient location
High quality of construction
Parking space
Approximately 1/3 of all interviewed companies have never thought about the quality of the environmentthey work in, but 50% would renovate their interior in correspondence to the established standards forecology construction.
Still the companies are more prone to rent than to buy their own office premises.
5
Outlook for the overall Bulgarian economy in 2012
Base: 307 companies
In your opinion, what is the outlook for the overall Bulgarian economy in 2012?
Same as 2011
Positive compared to 2011 Negative compared to 2011
22%
38%
39%
As a whole, the interviewed companies are
with positive attitudes toward development of Bulgarian economy in
2012.
6
Outlook for the industry, the interviewed companies operate in Bulgaria in 2012
Base: 307 companies
In your opinion, what is the outlook for the industry you operate in during 2012?
Same as 2011
Positive compared to 2011
Negative compared to 2011
30%34%
36%
Regarding the industry the companies operate in, they predict 2012 to keep the same pace as
2011.
7
Expectations towards company’s income
What are your expectations towards your company’s income in 2012?
To stay at the same level
To increase
To decrease
Base: 307 companies
36%
26%
38%
The companies are optimistic and according to 36% the income during 2012 will increase.
8
Number of employees
How many employees does the company currently have?
Base: 307 companies
32%
16%
15%
11%
8%
17%
0% 5% 10% 15% 20% 25% 30% 35%
Up to 20 employees
21-50 employees
51 – 100 employees
101 – 200 employees
201 – 500 employees
Above 501 employees
9
Plans regarding the number of employees during 2012
Till the end of 2012, what are your plans in terms of the number of employees in your company?
To maintain the current number of employees
The number of employees will decreaseThe number of employees will increase
Base: 307 companies
20%
16%
57%
7%Do not know
More than half of the researched companies consider to maintain
the current number of employees during 2012, and even 20% have intention to
increase the personnel.
10
Sofia Office Market, Current Situation
According to you what is the current situation on the office market in Sofia?
Да
Не
Base: 307 companies
88%
4%8%
The supply of office properties exceeds the demand
The demand of office properties exceeds the
supply
Do not know
According to approx. 90% of the interviewed companies the supply of office properties in Sofia exceeds the demand.
Office Projects Supply
Do you consider the current rental levels of office projects are aligned to the market
conditions?
Base: 307 companies
70%
21%
8%
Yes
No
Do not know
In your opinion is the supply of high quality office projects in Sofia sufficient?
35%55%
9%
YesNo
Do not know
High quality office projects in Sofia
Base: 100 companies
Which office building in Sofia can be classified as of high quality in your opinion ?
22%
21%
11%
8%
5%
4%
4%
2%
2%
1%
20%
0% 5% 10% 15% 20% 25%
Business Park Sofia
ETC
Sopharma Business Towers
Megapark
Serdica Offices
Este
Litex tower
Bellissimo
Abacus
Mall Sofia
Do not know
Characteristics of high quality office projects
In you opinion what characteristics an office project should possess to be classified as of high quality?
Base: 307 companies
Respondents define the environment and the
convenient location as determinant
characteristics of a high quality office project.
30%
23%
9%
5%
3%
3%
3%
3%
1%
18%
0% 5% 10% 15% 20% 25% 30% 35%
Environment and convenient location
High quality of construcion
Parking
Easy access by car
Image of the building
Overall costs
Availability of Property/ Facility management
Convenient public transportation
Proximity to governmental and financial institutions
Do not know
Quality working environment
In your opinion, do the office premises you are occupying currently provide quality working environment (quality illumination, sufficient fresh air, low levels of harmful
emissions of the finishing works)?
Base: 307 companies
44%
30%
26%
Yes No
Do not know/ Never thought about it
Would you consider to renovate the interior of your office premises in correspondence to the
standards for ecology construction?
48%
17%
36%
Yes
Do not know/ Never thought about it
No
Real estate characteristics
Interviewed companies are:
Base: 307 companies
45%
18%10%
26%
What is the approximate size of your current head office in Bulgaria?
Rent their office premises
Own office premisesHave both rented and
owned office premises
No answer
Approximately half of the researched companies
rent their office premises.
26%
15%
13%
10%
11%
25%
0% 5% 10% 15% 20% 25% 30%
Up to 200 sq m
201 sq m – 500 sq m
501 sq m – 1000 sq m
1001 sq m – 2000 sq m
More than 2000 sq m
Refuse to answer
Real estate characteristics
What is the level of satisfaction of your head office premises in Bulgaria?
Base: 307 companies
What is the contract duration for the office premises you rent?
46%
47%
1%
7%
0% 10% 20% 30% 40% 50%
Very satisfied
Satisfied
Unsatisfied
Very unsatisfied
13%
20%
11%
16%
39%
0% 10% 20% 30% 40% 50%
Up to 1 year
Between 2 – 3 years
Between 4 – 5 years
More than 5 years
Refuse to answer
17
Thank you!