The office real estate market is at a turning point, with sustainability driving major shifts. As new developments slow, building owners are focusing on modernizing and decarbonizing older properties to stay competitive. The pressure to meet ESG standards, comply with stricter EU regulations, and attract corporate tenants is accelerating this transformation.

 

Răzvan Nica, founder of BuildGreen, highlighted this trend during the "Trends in the Office Market" panel discussion organized by Ziarul Financiar. He emphasized that owners of office buildings constructed between 2004-2005 and 2010-2012 are increasingly investing in decarbonization.

 

"In a market where new development has slowed dramatically, we are seeing a clear shift toward decarbonization in older office buildings—particularly those built 10 to 20 years ago", said Răzvan Nica.

 

He pointed out that many of these buildings are reaching a stage where technical upgrades are no longer optional. Outdated equipment is being replaced, and many developers are transitioning from gas-based systems to heat pumps.

 

"While this will become the new standard for office buildings, implementing these changes in existing properties presents significant technical challenges," Nica added.

 

This discussion took place alongside key industry leaders, including Andrei Ianculescu (Head of Project & Development Services, C&W Echinox), Antoniu Panait (Managing Director, Vastint Romania), Andreea Cotiga (Head of Leasing Office, CPI Property Group), Maria Jianu (Leasing Director, Speedwell), Mihai Păduroiu (CEO, Office Division, One United Properties), and Florian Niţu (Managing Partner, Popovici Niţu Stoica & Asociaţii).

 

Why decarbonization is a priority now

 

The push for energy efficiency and sustainability is no longer just a competitive advantage, it’s a requirement. EU regulations on emissions and efficiency, coupled with rising ESG demands from corporate tenants, are forcing property owners to act.

 

Although Romania’s office market is relatively new compared to Western Europe, ESG compliance is already a decisive factor in leasing negotiations. Large corporations are unwilling to settle for spaces that don’t align with their Environmental, Social, and Governance (ESG) policies.

 

At the same time, demand for older office buildings is set to increase. With new office space deliveries in the next two years at historic lows, businesses looking for quality office space will have to turn to existing stock.

To remain attractive to top-tier tenants, owners of older buildings must invest in energy efficiency, sustainability, and decarbonization—now.

 

Read Răzvan Nica’s full statements in Ziarul Financiar: here.