The office space market in Sofia marks the first quarter of 2026 with a temporary slowdown in activity. The lack of clarity regarding employee social security contributions, general economic policy, the introduction of the euro and its effect on inflation, as well as the unexpected war in the Persian Gulf, increased uncertainty and prompted some managers to postpone the negotiation of office space for a while, according to data from Cushman&Wakefield | Forton.
In the first quarter of 2026, the total volume of concluded rental transactions reached 43,200 sq m, which represents a decrease of 4.9% compared to the previous quarter and a decrease of 15.9% compared to the same period last year.
The highest rental activity was recorded in the peripheral areas of the city. Approximately 24,000 sq m have been contracted there, mainly in office buildings in the Ring Road area, in and around Business Park Sofia. The areas located along the main roads are in second place, with about 14,000 sq m, followed by the wider center and the central business district with a total of 5,400 sq m.
About 65% of the newly leased office space has been taken by IT companies. The rest is distributed between enterprises in the administrative services sector (9%), healthcare (7%), wholesale trade (5%) and others (15%).
„In the first quarter of 2026, and by the way, in the last quarter of last year, uncertainty affected the behavior of tenants and ultimately - the volume of contracted office space. We look to the next three months with cautious optimism, as at least some of the unknowns in the business environment will be clarified. For example, the state budget will provide clarity on social security contributions and the maximum social security income," commented Yoanna Dimitrova, Manager “Office Space“.
Limited new supply and slight decline in vacant space
New supply remains limited, with the only completed project in Q1 2026 being Oxia by Bernard Investments. The office building with a gross floor area of 3,800 sq m received a permit for use and began operation in March. The building is Class A, LEED Platinum certified and offers a mix of serviced and standard office spaces.
By the end of Q1 2026, the volume of space under construction reached 219,000 sq m. About 46%, or approximately 100,000 sq m, distributed across 16 projects, are expected to be completed by the end of 2026. Therefore, the risk of oversupply is among the main concerns of landlords in Sofia.
The total volume of office space in the capital reached 2,349,000 sq m at the end of March 2026. The vacant office space on the market in Sofia amounted to 278,000 sq m, which represents 11.8% of the office stock.
The lowest volume of vacant space - 12,600 sq m - was recorded in the central business district of Sofia, where the vacancy rate dropped to 5.3%. The highest volume - 130,000 sq m - was available in the area of the main roads, where the vacancy rate also decreased to 11.5%. The highest vacancy rate – 16.0% – was recorded in the peripheral areas.
Favourable price levels for tenants in most submarkets
Rent levels remained stable in Q1 2026, reflecting weaker demand, the volume of available vacant space in most submarkets and concerns related to potential oversupply. Rents for Class A offices are mainly held in the range of 14-18 EUR/sq m. In the central business district, prime rents remain at levels of 20 EUR/sq m. for the fourth consecutive quarter.
Nearly 50,000 sq m of office space are subject to investment transactions
Two significant investment transactions with office properties were completed in the first quarter of 2026. Bernard Investments acquired the two office buildings of BSR One, located in the Slatina district of Sofia. With this transaction, the investor increased its portfolio by almost 30,000 sq m of office space, already managing 120,000 sq m in 10 buildings in the capital.
The second transaction was the acquisition of Varna Towers – mixed-use building (offices and retail) in the largest city on the Bulgarian Black Sea coast, by two local investors. The office part of the deal includes two towers with a total lettable office area of 18,500 sq m.
Detailed statistics on average property prices in Bulgaria by city and neighborhood can be found at imot.bg