10% Of Sofia's Office Space Vacant

Vacant office space in Sofia can reach up to 10% by the end of the year, data compiled by MBL shows. The main reason is the booming construction, which is not slowing down even in the current economic conditions.Sofia currently has 874 100 square meters of office space, 81% of which situated in the downtown area. Another 65 000 sq m of offices class A and B were completed in Q3 in the city's business centers. If construction continues at that pace, by end of the year, Sofia will boast some 970 000 sq meters of offices.The main reason for new offices to stay vacant is the global financial crisis - companies are slowing down on expansion and hiring right now, which means they do not need additional premises.On a local scale, bad infrastructure and bad transport are making office buildings outside the downtown unattractive. This is why the percentage of vacant offices in downtown Sofia is around 1.6-3.2%, while in more distant neighborhoods it reaches 9.2%.The average rent in business centers in Sofia's suburbs is around 15.5 eur/sq m. This price fell by some 15% in some areas, while rents in the downtown are up 23% to 22-28 euros.