Office rentals debunked
With the highest investment activity on the real estate market, Warsaw has been the fastest-growing prime office space location in the last six months. So what’s attracting tenants and what’s on their must-have checklists? Here are the top five according to experts.
“Today, modern rental spaces are also about an inclusion mindset,” says Marcin Zaleski, Senior Associate at Colliers International, explaining that tenants choose spaces that make the place. “Tenants want new buildings that are ready to meet every need of employees. Canteens, restaurants, fitness clubs, ATMs and even spas are on the list,” he says, describing the new trend of ‘placemaking locations’. Tenants are also attracted to spaces that are livable and focus on well-being. “Corporations seek placemaking locations,” says Karol Patynowski, Director of Regional Markets at JLL. “Leisure opportunities and different amenities make these locations very desirable,” he added. The mixed-use developments of Elektrownia Powiśle and Warsaw Spire are examples of placemaking locations in the capital.
Developers and real estate agencies rely on digital marketing strategies to attract the right tenant and generate buzz in the community. Social media platforms such as Facebook and Instagram help lure tech-savvy workforce and increase brand awareness. Landlords also want to be noticed. Even small market players are not afraid to invest in digitalisation and high-tech solutions to produce engaging and eye-catching advertisements.
Offices often provide fixed desks, private offices, furnished open areas, kitchens, meeting rooms and phone booths – everything budding entrepreneurs or business tycoons might need.
Tenants choose between two options: short or long lease terms. “Smaller players (SMEs or startups) go for short lease terms. Thus, it is possible for them to rent a space for 2-3 years,” Zaleski says. Larger players opt for long term leases for 5 or more years. Co-working spaces offer maximum flexibility for new tenants. For example, HubHub, a co-working office space provider in Warsaw, offers subscriptions on a monthly basis. “Tenants can cancel their subscriptions with a one month notice period,” says Bartosz Chmiel, Brand and Marketing Manager at HubHub. “The ever-changing nature of work pushes tenants to look for flexible office space where they can adjust and adapt the office to meet their business requirements,” says Zaleski.
Business owners want to work in a building that is about sustainable solutions while being cost-effective at the same time. “Tenants prefer buildings with green certificates, such as BREEAM or LEED,” Patynowski says. More competitive developers offer spaces with certificates proving that the building supports the health and wellbeing of employees. Other tenants look for space featuring hi-tech solutions which can improve the functionality of the building. Experts highlight the fact that eco-friendly office spaces improve the productivity of those who occupy them, which translates into better financial results.
Connectivity and location
It’s all about networking: “Today, both landlords and tenants want a shared social experience, networking and collaborations,” Chmiel says. The effect? Cross-company collaboration and more employment opportunities for office employees. And finally, the location. experts say it’s not just about finding the most profitable location, but also about increasing and improving brand awareness and connectivity with the rest of the world.