OFFICE RENTAL LEVELS: STRIVING FOR GROWTH AND ADAPTATION
According to a recent study by Colliers International, the high rate of work from distance and the unstable pace of the overall economic recovery are just a few of the factors affecting the office rental activity in Sofia. According to data from the agency, quoted by the news portal dnes.bg, in the first half of the year, relocations make up for 39% of the total leased space, lease renewals have a share of 37%, while pre-leases sum up to 10%, and 10% consists of expansions of already present companies.
"There are no fluctuations regarding the occupancy rate in Sofia Airport Center, but we can witness a trend among our tenants for the optimization of the design of the offices, in accordance with all the requirements for social distancing and healthy indoor work environment. The complex has a high occupancy rate - 98%, however, we are in the position to offer Class A and B office spaces or expansion options for companies who target SAC as location for their offices", commented Mariya Tantilova, Marketing and Leasing manager of Sofia Airport Center.
According to MBL, the total Class-A and B office stock reached 557,000 sqm in the second quarter and are the most sough-after type of offices, both in existing buildings as well in buildings under construction.
Despite the challenging context created by the pandemic and the pessimistic expectations regarding the rental office market, Sofia Airport Center has remained resilient and has registered no changes regarding existing tenancies, whilst maintaining a high percentage of home office work. According to Mariya Tantilova, tenants adhere to a hybrid model of work, which successfully combines work from home and at the office.
The lease terms have remained relatively stable in SAC, as the complex offers flexible rental conditions and added value, unique amenities which place the business park in a competitive position in the current market context, such as improved outdoor park environment, flexible working options and other social activities.
The Flex-R Lounge is the first step towards the overall improvement and enhancement of the common areas in the complex. The large-scale project is inspired by the idea of comfort and home coziness of employees and will generate a total of 150 new workstations. Additional recreation areas located near the 5,000 sqm park area with generous green areas, walking trail and a central lake will make the working day an exceptional experience. The Flex-R Lounge is an additional amenity created for the tenant companies that seek to provide their employees with flexible working units without renting additional office space.
Sofia Airport Center is part of the Revetas Fund II portfolio. As a European real estate investment advisor, the integration of the environmental, social and governance principles into our group’s culture and across all investment processes during the entire holding cycle (from development/acquisition until disposal) is of utmost importance. A major strategic direction of the group is the deployment of ESG initiatives and establishing a roadmap to carbon neutrality over the coming period across the entire portfolio, cumulated around the Revetas Ecosystem concept. The tactical plan involves a series of design, technological and environmental solutions, already set out, with the purpose of not only to comply with the health and safety measures, but furthermore, to increase the productivity and wellbeing of all our tenants, such as activating the internal and external common areas of the projects, creating flexible working spaces, redesigning parts of the buildings to better suit the needs of the employees, creating open air gyms, additional green and recreational areas etc. These measures can potentially reduce office density, offering versatile and innovative working solutions outside the cubicles, overall added value to our tenants.