Iași combines its position as one of Romania’s leading university cities with one of the most competitive cost profiles among the country’s secondary office markets. The city’s salary gap compared with Cluj-Napoca – around 30%, and Timișoara – approximately 15%, is not a disadvantage but rather a compelling argument for IT, outsourcing and professional services companies looking to optimise operating costs without compromising access to skilled talent. While Cluj-Napoca remains the country’s largest regional office market in terms of stock and demand, Iași offers an efficient alternative, combining a highly qualified workforce with lower operating costs and rapidly improving connectivity.
Prime office rents in Iași currently range between EUR 13 and EUR 18 per sqm/month for Class A buildings and between EUR 10 and EUR 13 per sqm/month for Class B properties, according to data provided by iO Partners to Romania Property Club (RPC).
“There are currently no office buildings under construction in Iași, which is understandable given the significant expansion of the city’s office stock in recent years. More than 80,000 sqm of leasable office space was delivered in 2023 alone, through the completion of Palas Campus and the first office phase of Silk District, representing an increase of almost 40% in the city’s modern office stock within a single year. It is evident that a market of Iași’s size cannot absorb deliveries of this magnitude every year,” explain iO Partners representatives.
Although no office projects are currently under construction, the market retains considerable development potential. Future office phases within Silk District, an additional office building within the United Business Center (UBC) complex, and several smaller projects currently in early planning stages could accommodate any increase in occupier demand over the coming years.
The IT and telecommunications sector remains by far the dominant occupier in Iași’s office market, reflecting the city’s growing reputation as one of Romania’s leading technology hubs. Historically, this sector has generated just over 70% of total office demand, while professional services and business process outsourcing (BPO) account for approximately 12%.
As of November 2025, Iași’s IT and communications sector employed nearly 19,000 professionals, providing a strong foundation for office demand. At the same time, occupier requirements are evolving, shifting away from large-scale outsourcing operations towards smaller, higher-value teams specialising in artificial intelligence, cloud technologies and machine learning. This trend increasingly favours premium Class A office buildings over older Class B assets.
Iași benefits from a substantial stock of modern, high-quality office space. However, demand remains relatively lower than in other regional markets, resulting in a comparatively higher vacancy rate. At 13.3%, Iași records the highest office vacancy level among Romania’s major regional cities, although this figure is largely driven by older, less competitive buildings. Premium office assets continue to perform strongly, with leasing activity primarily consisting of renewals and expansions within established business parks.
With a total modern office stock of approximately 296,000 sqm, Iași ranks as Romania’s second-largest regional office market after Cluj-Napoca (340,000 sqm) and slightly ahead of Timișoara (293,000 sqm).
Ionuț Pavel, Office Buildings Manager, United Business Center Palas:
“Iași has established itself as a strong player in both the Romanian and wider regional office markets. In terms of attracting international companies, the city competes not only with other Romanian cities but increasingly with business destinations across Europe, benefiting from a highly qualified workforce, competitive operating costs and an attractive quality of life.
We started 2026 by signing new lease transactions exceeding 3,300 sqm across Palas and Palas Campus. At the same time, we are engaged in advanced negotiations for larger office requirements of more than 1,000 sqm, although most current enquiries are for spaces ranging between 300 and 500 sqm. Demand is primarily driven by companies operating in banking, business services and AI solutions.
We tailor each project to our tenants’ specific requirements, which frequently involve redesigning layouts, reconfiguring office space and providing a high degree of flexibility. Our objective remains to maintain occupancy levels between 95% and 100% across all office buildings within the IULIUS network.”
