This post was automatically translated into English
This year, Vilnius has seen the start of corporate migration, which is expected to be most intense in 2017. According to experts, the current supply of offices in the capital is about 450 thousand square meters. By the end of this year, the supply should increase by 70 thousand square meters, and in 2017 – by another 80 thousand. Currently, not only active construction is taking place in the capital, but also exploration, and some companies are already preparing to move to new business centers.
This year, Vilnius has begun a migration of companies, which is expected to be most intense in 2017. According to experts, the current supply of offices in the capital is about 450 thousand square meters. By the end of this year, the supply should increase by 70 thousand square meters, and in 2017 – by another 80 thousand. Currently, not only active construction is taking place in the capital, but also exploration, and some companies are already preparing to move to new business centers..
According to Giedrius Brūzgė, director of the property management department at Eika, companies are not inclined to change offices often, as this causes a lot of inconvenience: moving, changing addresses, informing customers and suppliers, setting up a new office, adapting employees, short-term disruption of operations, etc. Usually, company managers do not waste time searching for and changing a new office without a good reason. The representative of the real estate developer Eika distinguishes three main reasons why companies change offices.
Unsecured area for development
During the crisis, companies usually wanted to reduce their office space. If the business center administration could not offer such an opportunity at that time, they moved to other business centers or simply to cheaper premises. Now the reverse process is observed – companies are growing, so the need for larger premises naturally arises. According to a representative of the company building the business center “135” on Žalgirio Street, ensuring office expansion for a period of 2-5 years is one of the main criteria indicated by future tenants of this business center. “If the manager, when the need arises, does not have the opportunity to offer the tenant additional office space, the tenant is forced to look for premises elsewhere. The work of a company in two different offices is expensive, so such a solution is often temporary, until suitable premises are found in one building,” says G. Brūzgė.
The need for higher quality
According to a real estate expert, companies are increasingly placing greater importance on the quality of office space and its equipment. This is related to motivation, which is especially relevant at a time when competition for employees has increased. Companies are willing to pay more for higher-quality premises, which is why there is a trend of moving offices from older administrative buildings to B-class business centers, and from B-class to B+ or A-class business centers. According to an Eika representative, the search for a new office is also determined by changed needs. Company employees are no longer satisfied with the location of the office, public transport connections, and the insufficient number of parking spaces. In the next few years, the infrastructure of the business center, popular shared services will gain increasing importance: shared meeting rooms, showers, bicycle storage, administrator services, as well as the opportunity to exercise in the office, green areas in the business center territory, catering establishments or a kindergarten near the workplace.
Office manager competence
“Although the office is located in the newest business center, the company does not always feel comfortable there. The prompt response of the business center manager to the problems that arise is an extremely important factor in ensuring the tenant’s work efficiency,” says the real estate expert. Smaller companies more often choose an office based on price and location, while international companies also evaluate the business center manager and his recommendations. “All companies should evaluate the manager’s competence when choosing an office, because an experienced business center administrator will quickly and smoothly solve problems, save time, so employees will be able to work comfortably and efficiently. Therefore, the investment will pay off,” says G. Brūzgė.
Although migration between business centers in the capital is inevitable in the near future, the change of tenants will occur unevenly: offices will become vacant in some, and fill up in others. According to a representative of the company “Eika”, not all previously built office buildings will see an increase in vacancies. G. Brūzgė gives an example of “EIKA Business Centers”, which have been operating for more than ten years, located in the Business Triangle of the capital. “As much as 60 percent of the business center’s area is occupied by tenants who have been there for more than five years. Retaining long-term tenants, as competition in the office market grows, is possible only by adapting to new needs. For example, installing a more convenient parking system, increasing the number of bicycle storage facilities, bringing together the business community by organizing relevant events for it. Dialogue between the landlord and the tenant, listening to their needs and expectations, and effective solutions are no less important,” says the real estate expert. “Usually, companies move out of our business center only when they cease operations or when we do not have available office space necessary to ensure the company’s development. Less often, when companies adopt strategic plans to change the location of the office, reduce the number of employees or expenses for maintaining the office.”
About the Eika group of companies
Founded in 1992, the company “EIKA” is one of the largest real estate development and construction groups in Lithuania, successfully developing residential, commercial, public and other purpose building projects, creating a new quality of life and work. The company has already built more than 3,000 apartments and 270 thousand square meters of buildings. “Eika” has been awarded many times as the best real estate developer in Lithuania, the company’s projects “Santariškių namai” and “EIKA namai Pilaitė” have become the best in Lithuania.
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Raimonda Janusonytė
Marketing and Communications Manager
Phone: +370 5 2045 809
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