Colliers Office Sentiment Report ENG

Sofia Office Market Sentiment Report May 2012

Methodology

Type of research

Quantitative

Method

Online survey

Fieldwork Period

March 2012

Sample size

307 companies

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Executive summary (1 от 2)  Participants in the survey share positive attitudes toward the Bulgarian economy’s development in 2012.

 The target companies are also optimistic about the development of the industry they operate in and consider 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 Sofia European Trade Center Sopharma Business Towers Megapark Serdika Offices

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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 environment they work in, but 50% would renovate their interior in correspondence to the established standards for ecology construction.

 Still the companies are more prone to rent than to buy their own office premises.

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Outlook for the overall Bulgarian economy in 2012

In your opinion, what is the outlook for the overall Bulgarian economy in 2012?

Positive compared to 2011

Negative compared to 2011 22%

39%

38%

As a whole, the interviewed companies are with positive attitudes toward development of Bulgarian economy in 2012.

Base: 307 companies

Same as 2011

5

Outlook for the industry, the interviewed companies operate in Bulgaria in 2012 In your opinion, what is the outlook for the industry you operate in during 2012?

Negative compared to 2011 Positive compared to 2011 34% 30%

36%

Regarding the industry the companies operate in, they predict 2012 to keep the same pace as 2011.

Base: 307 companies

Same as 2011

6

Expectations towards company’s income

What are your expectations towards your company’s income in 2012?

To increase 36%

26%

To decrease

38%

To stay at the same level

The companies are optimistic and according to 36% the income during 2012 will increase.

Base: 307 companies

7

Number of employees

How many employees does the company currently have?

Up to 20 employees

32%

21-50 employees

16%

51 – 100 employees

15%

101 – 200 employees

11%

201 – 500 employees

8%

Above 501 employees

17% 0%

Base: 307 companies

5%

10%

15%

20%

25%

30%

35%

8

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?

The number of employees will decrease

The number of employees will increase 16% 20%

Do not know

7%

57%

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.

Base: 307 companies

To maintain the current number of employees

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Sofia Office Market, Current Situation

According to you what is the current situation on the office market in Sofia?

The supply of office properties exceeds the demand 88%

Не

According to approx. 90% of the interviewed companies the supply of office properties in Sofia exceeds the demand.

Base: 307 companies

Да

4%

The demand of office properties exceeds the supply

8%

Do not know

10

Office Projects Supply In your opinion is the supply of high quality office projects in Sofia sufficient?

No Yes

21%

Do not know 8%

70%

Do you consider the current rental levels of office projects are aligned to the market conditions?

No

Yes 55% 35%

9%

Do not know Base: 307 companies

High quality office projects in Sofia

Which office building in Sofia can be classified as of high quality in your opinion ?

Business Park Sofia

22%

ETC

21%

Sopharma Business Towers

11%

Megapark

8%

Serdica Offices

5%

Este

4%

Litex tower

4%

Bellissimo

2%

Abacus

2%

Mall Sofia

1%

Do not know

20% 0%

Base: 100 companies

5%

10%

15%

20%

25%

Characteristics of high quality office projects

In you opinion what characteristics an office project should possess to be classified as of high quality?

Environment and convenient location

30%

High quality of construcion

23%

Parking

9%

Easy access by car

5%

Image of the building

3%

Overall costs

3%

Availability of Property/ Facility management

3%

Convenient public transportation

3%

Proximity to governmental and financial institutions

Respondents define the environment and the convenient location as determinant characteristics of a high quality office project.

1%

Do not know

18% 0%

Base: 307 companies

5%

10%

15%

20%

25%

30%

35%

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)?

Yes

No 44% 30% 26%

Would you consider to renovate the interior of your office premises in correspondence to the standards for ecology construction?

Yes Do not know/ Never thought about it

48%

No 17% 36%

Do not know/ Never thought about it Base: 307 companies

Real estate characteristics

Interviewed companies are: Rent their office premises 45%

Approximately half of the researched companies rent their office premises.

26% 18%

What is the approximate size of your current head office in Bulgaria?

10% No answer Have both rented and owned office premises

Own office premises

Up to 200 sq m

26%

201 sq m – 500 sq m

15%

501 sq m – 1000 sq m

13%

1001 sq m – 2000 sq m

10%

More than 2000 sq m

11%

Refuse to answer

25% 0%

Base: 307 companies

5% 10% 15% 20% 25% 30%

Real estate characteristics

What is the level of satisfaction of your head office premises in Bulgaria?

Very satisfied

46%

Satisfied

47%

Unsatisfied

1%

Very unsatisfied

What is the contract duration for the office premises you rent?

7% 0%

10%

20%

30%

40%

50%

Up to 1 year

13%

Between 2 – 3 years

20%

Between 4 – 5 years

11%

More than 5 years

16%

Refuse to answer

39% 0%

Base: 307 companies

10%

20%

30%

40%

50%

Thank you!

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