Coworking and serviced office spaces in Bucharest

Overview

The concept of coworking and serviced office spaces entered the Romanian market in 1998, when Belgian group Regus opened its first location in Bucharest. Since 2008 to 2018 the total surface occupied by coworking operators grew from a little over 2,500 sqm to over 60,000 sqm. The expansion was influenced by the development of the IT&C industry, the need for spaces where creative individuals can meet and collaborate and most importantly, by the new generations‘ inclination towards alternative professions, which no longer require a steady workspace and a traditional working schedule. Bucharest is the largest market for such spaces, and the past two years have seen a booming growth of the segment. Currently, the surface occupied by coworking spaces and serviced offices in Bucharest stands at over 71,000 sqm, around 2% of the capital city’s total office stock. 

Serviced office vs. coworking

A serviced office is a fully equipped office space that provides administrative and maintenance services and is leased for a short term. The rental terms as well as the space itself are more flexible compared to conventional office spaces. They typically host established small to medium sized businesses in need for a plug-and-play office space. A coworking space is a type of flexible workspace dedicated to freelancers, startups, entrepreneurs and small businesses. The space can be leased for as little as an hour, there are open desks as well as dedicated desks and private offices. The main goal of coworking spaces is to provide a sense of community by encouraging collaboration and innovation.

Why coworking?

• Cost-effective
• Flexible lease terms
• Great networking opportunities
• Complete work flexibility
• Creating communities
• Providing access to a diverse talent pool

The largest operators of coworking spaces in Bucharest are IWG (with almost 30,000 sqm in 14 serviced offices around the city) and Mindspace (with 12,000 sqm in three locations). The market is on the rise, with the first quarter of 2019 registering expansions and new entries from large and small operators of about 8,000 sqm. 

Flexibility & variety 

Although the market is dominated by large players, there is an increasing number of smaller coworking spaces in Bucharest. Located mainly in the city centre, these spaces offer tailored working experiences, host conferences, seminars and cultural or social events. Some focus on transforming neighborhoods into communities (like Cartier Hub by NOD Makerspace in Drumul Taberei), while others are bringing together the co-living and coworking concepts (like Pura Vida Hub and the recently opened Omega House). 

Conclusions

The fast growth of the coworking segment in the past two years, the upcoming openings of new spaces and entrances of international operators (like the North-American giant WeWork), as well as the planned mixed-use developments with dedicated coworking spaces (e.g. Marmura Residence by Prime Kapital, Fosta Fabrica by Hanner) prove that the concept is here to stay.

As a young market, Bucharest has potential for growth. However, operators will have to continuously innovate their spaces and services in order to thrive in the coworking business. There is only so much a space can do when it comes to keeping people together and making them happy and therefore the human factor is also extremely important. The presence of a community manager or a facility operator in a coworking space, for example, can make an important difference.