Employers prefer to lease office space in buildings that are centrally located, which allows people to cut the commute time. Moreover, a company’s corporate culture includes not only motivational tools that increase work productivity but also inspirational and office-related facilities that stimulate the team to enjoy the time spent at the office. Below, an interview with Mirela Ciovică, Head of Leasing PPF Real Estate (in picture above).

Many employers believe it is unlikely that workplaces will ever be the same as before the pandemic. What does this mean in practice and how can real estate developers ensure they maintain their occupancy?

The pandemic has had an impact on all aspects of every business, including the real estate segment. Most companies have had to figure out what works best for their people, their business, and their plans and goals, whilst being mindful of creating a balance between office work and work from home. This new model is most likely here to stay for quite some time, and I believe it brings a few very important opportunities. It releases people from rush hour, it keeps the office for focus, collaboration, research, growth, and innovation, it re-arranged high-density open spaces and allowed tenants to afford better office space by potentially leasing a bit less square meters.

Office concepts overall have become more flexible, whilst keeping only the best components of what the office space can offer and cater to.  

In the last 12 months, the demand from tenants was constant and we managed to sign important lease contracts such as nhood Romania, Editec Reckitt Benckiser, Epam, and Havas which have signed for a total of almost 6.000 sqm of office space in Crystal Tower, citing the building’s ideal city location and its high-quality experience and technical specs. At the same time, Orkla Foods Romania, Ameropa Romania, ID Logistics signed leases for nearly 2.000 sqm in Metropolis Center. Last month, multinational IT giant EPAM Systems has leased 1,100 sqm in Crystal Tower to open its first Romanian headquarters and global advertising and media buying agency Havas has leased 600 sqm in the same building to relocate its new office. 

What is the PPF Real Estate offer in this context?

PPF Real Estate is a leading developer and investor with property assets exceeding EUR 2,5 billion globally. The company owns two A-class office buildings in Bucharest, Crystal  Tower, and Metropolis Center, with a combined rentable area of 35,000sqm. Our buildings are impeccably located, near Victoriei Square, they both have unique architecture and concepts.  Metropolis is a mix between the personality of the historical monument façade and the class A office building tech specs, it is a tenant-centric project with 1,500 sqm of piazetta space in front of the building for use and enjoyment. Crystal towers over its surroundings offering spaces full of light and inspiring views over the city.

Moreover, we have recently invested almost 1 mil EUR in Metropolis Center, with the scope of redesigning the ground floor, so that it uses energy-saving technology, streamlined indoor traffic, a new reception desk, fully furnished meeting rooms, dedicated to the use of building tenants, and a coffee shop, as a novelty introduced by the new design. The floor also hosts relaxing areas with small tables and sofas will be available for tenants and visitors. The new concept includes styled finishes on the floors, walls and ceilings, TV screens, and info panels, creating a warm and welcoming environment. 

What prompted you to make this investment in the Romanian market?

Our purpose is to create value for our tenants, as well as provide high-quality standards and a sustainable work environment. The new investment is proof of PPF’s long-term commitment to Romania and to its tenants, who need change and upgrade now that they are returning to the office in a different work model. 

Some say that the future of work will be a hybrid, combining working from home and working in an office building, in a space functioning as a hub of collaborative and connected work. What are your thoughts on this?

This is already happening as we speak and will continue to be part of the new work habits as a result of the pandemic. However, we don’t expect dramatic shifts for the Romanian market and believe that the business will continue to evolve, taking into account the increasing demand from new and existing tenants, for our two class A+ office buildings, situated right in the heart of the Capital city. This is yet another important advantage both for us and for our clients, who can commute to work with ease and within reach of most areas of Bucharest. 

How can office work provide added value to a company’s culture and status, especially in centrally located office buildings?   

This is a self-evident and valid argument. Employers prefer to lease office space in buildings that are centrally located, which allows people to cut the commute time. Moreover, a company’s corporate culture includes not only motivational tools that increase work productivity but also inspirational and office-related facilities that stimulate the team to enjoy the time spent at the office. If you combine to this the fact that both PPF Real Estate’s class A+ office buildings provide state-of-the-art facilities, as well as full safety and sanitation procedures, it is only natural that we have seen an increase in demand for our office spaces. 

How do you see the evolution of Romania’s real estate market from your perspective as an investor in office buildings?

At PPF Real Estate we believe in Romania’s potential for growth, despite the pandemic. We believe that things will gradually return to steady growth and we base this on several observations. One of them is the fact that we have signed 8 lease agreements with important companies in the last 6 months for our two office buildings, after having had an eventful 2020, as well. The emergent characteristic of the Romanian market is another factor. Compared to other Central and Eastern European countries, major cities in Romania still have a lot of potential for growth with regards to office space, real estate, and the economy in general. 

(p) - This article is an advertorial.