Office trends Q2 2025 by C&W Forton
ECONOMY: not bad, all things considered
All is well that ends well, and the most recent economic data from Bulgaria proves as much. The second quarter got off to a bad start as on Apr. 2nd the US “reciprocal” tariffs shocked the business community across the world. Despite its limited exposure to the US market, Bulgaria’s EU trading partners were heavily affected. That same month economic sentiment dropped, as did production indices in manufacturing and services, while domestic and external trade volumes narrowed.
Fortunately, the situation reversed after the US rolled back tariff rates for 90 days. In May and June, sentiment recovered, production in services edged up, domestic trade expanded, and uncertainty in manufacturing and retail diminished. The quarter ended on a high note with final approval of Bulgaria’s accession to the Eurozone at the start of 2026. GDP growth in Q2 is expected between 1.5% and 2.5% y/y, lower than the 3.1% y/y posted in Q1.
DEMAND: the vacancy rate goes down again
A key trend taking shape on the Sofia office market is the gradual decline of the vacancy rate. In Q2 the overall rate slipped to 12.9%. Decline was observed across all submarkets, although the steepest fall was registered in the CBD area and the mildest in the Broad Center. Vacancy rates in the CBD and Broad Center submarkets were lower than the average, while the Main Road and Suburbs exceeded the average.
Gross take-up in Q2 2025 was 41,000 sq m, down 11% q/q, and in-line with feedback from building owners, the majority of whom reported fewer enquiries from Q1. Nearly 2/3 of the contracted space was taken up by firms in IT, Finance, and Professional services. Yet, the overall list of occupier industries was visibly more diverse than in Q1, including tenants from education, health, manufacturing, mining, and other sectors of the economy.
The structure of the contracted volume changed. The share of pure renewals halved, while expansions and relocations nearly doubled. In terms of submarkets, 4/5 of the contracted volume was in the CBD and Main Road areas (along key boulevards like Tsarigradsko shose, Cherni Vrah, and Bulgaria). The remaining 1/5 of the volume was mainly in suburban
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