“We have developed a stand-alone office product consisting of serviced, private offices with small surfaces between 20 and 70 square meters, in a business center format. This business model has worked very well for us, and continues to perform in a upward direction. Its location and the building itself supports this format to further develop.
We currently own and manage two office buildings in Bucharest. Both are old buildings with patrimonial value that have been renovated, consolidated and modernized to fit current standards, and to anticipate the needs of future generations. Our leasable area – now under exploitation – sums up to approximately 12,000 square meters,” Andreea Dumitru, Chief Marketing Officer, Hagag Development Europe said at Workplace of the Future conference organized by The Diplomat-Bucharest.
Key statements:
- We have a new mixed-use building in our portfolio for which we have started a refurbishment process and which will come back to the commercial circuit by the end of this summer. Upon completion of the renovation works for this project, we will add another 5,000 square meters of office space.
- Companies need flexibility and are more attentive to leasing conditions in the context of economic and political unpredictability in recent years.
- Our buildings’ layouts are more flexible compared to a floor layout in large-scale office projects. We can, for example, divide a 700 square meter floor into two segments and accommodate two tenants on the same floor. In our office building on Tudor Arghezi, for example, we have the business center on the first 3 floors, followed by conventional space on the following three. At the moment, our occupancy rate here has reached 100%, which is a very good result given the current market fluctuations and the hybrid work models.
- Another advantage is that we can deliver turnkey projects. We have in-house teams, including architects, with whom we can make the space planning and design for our tenants, if the case. On the other hand, we have absolutely no issue with executing a tenant’s concept, if preferred. The key takeaway here is the we can deliver a turnkey space and all the tenant has to do is sign the lease and get ready to move in.
- The office space is considered to be an expense, not necessarily an investment. So numbers must add up. Here’s where we come in and help our tenants make the best decisions based on their needs, requirements and budget.
