Special edition newsletter
Real Estate & Construction - Market-changing investments
Bojan Jevremović, Leasing Director Office MPC Properties - Tenants must be offered innovation, added value and a sustainable aspect of projects
(Photo: David Mićić)
He explained why it is not enough to just provide an office building with an internet connection, pointed out the demands that modern clients have, but also drew attention to the importance of a safe, healthy and secure environment.
The move-in of the first tenants to the Branko Business Center was announced for September. How did it go and were the expectations met? Why should interested parties develop their business here?
- Brankov Business Center was officially opened in September and the first tenants started moving into their new offices. With an occupancy of over 80% of signed contracts on the day of opening, Brankov Business Center shows why it is one of the most anticipated projects in the city center.
This modern business building dominates the microlocation itself and gives it a modern, new look, in the place where once upon a time the spirit of business was established in the building of the former Beobanka. Today, Brankov Business Center is a modern office building with a unique sophisticated lobby design, a floor-to-ceiling glass facade, oriented on both sides with maximum use of daylight, which, in addition to benefiting users, also has an energy-saving effect.
The facility meets all the technical standards of modern business and also provides additional value through details such as, for example, the beautiful green terrace on the sixth floor, which is used for relaxation, a break from work or an informal meeting, with an incredible panoramic view of our capital.
The location of the facility itself is also unique and is located at the junction of many city lines, in the very center of the city, a few minutes from the river, parks, restaurants, cafeterias, hotels and the largest number of official state and city institutions. I think that after all the above, it is clear why Brankov Business Center is the right place for businesses that want the best for their development and reputation.
Navigator business complex (Photo: Relja Ivanić)
MPC develops modern A-class commercial properties. How would you rate this particular market in Belgrade? How competitive is it with the region?
- That`s right, MPC is a company recognized on the market as a developer that does not compromise when it comes to the quality of buildings. All our business facilities are characterized by a unique location, innovative design, the most modern technological solutions in terms of the functioning of the facility, as well as the highest quality materials both in construction and in the finishing works.
In addition, all our business facilities have additional value through a rich gastronomic offer, banks, cafeterias, fitness centers, kindergartens, etc., and even the entire shopping center in the case of the Ušće complex. I emphasize all this as an introduction to the second question because today, unlike in some past times, all the listed items are very important (and some even crucial) when choosing a future location for global tenants in our market.
After the crisis caused by the pandemic, as well as the too-fast entry into the hybrid way of working and the growing need to attract a certain percentage of employees to offices, the company`s focus is absolutely on choosing the highest quality office space, with as much additional content as possible and in the best possible location. This led to diversification in the rental price between such facilities and standard office buildings, so today there is a difference of several euros per square meter between facilities in the CBD, which was not the case until just a few years ago.
When it comes to office buildings, all European and world reports say that the safest investment in construction, and investment purchase, is precisely in core real estate, class A facilities in central business districts that have the lowest vacancy, for which there is the highest demand, and which also record the historically highest growth in rental prices.
When it comes to the region, unfortunately we are still lagging behind in every sense, both in terms of the number of square meters of office space, the presence of a greater number of global R&D and similar centers, and the level of transactions when it comes to investment in business facilities. In the last few years, there has been a positive trend such as, for example, the lease of our office building Ušće Tower Two for the needs of the Microsoft R&D center and several other significant transactions. Also, we had significant investment transactions in the segment of the sale of individual business facilities and the entire office portfolio of over 100,000 m2. These are very good indicators and I personally believe in the further growth of the market in this sense.
What are the client requirements that influence the development of commercial real estate? What is it that needs to be offered? How much does location matter?
- Today, more than ever, it is necessary to carefully plan the investment and development of business facilities, because the habits and needs of tenants have changed drastically. Average is no longer enough and tenants must be offered innovation, added value and a sustainable aspect of projects. Modern business centers are no longer just offices, but also places for shopping, hairdressers, banks, restaurants, fitness, parks, vacations and various other services and activities.
As a leader and pioneer in the development of commercial real estate, MPC has long been investing in content throughout the entire business portfolio. Perhaps the biggest difference we make on the market is the community program that brings together our tenants through various events sponsored by our company. Thus, our tenants were able to enjoy events such as the F1 Red Bull event, the Serbia Open tennis tournament, the UŠĆE Eco Fest, the French Film Festival, the Back to work party, the Ice-cream break in our business complexes, as well as the various workshops that we organize in cooperation with cultural and other institutions.
As I already mentioned, it is not enough to just provide an office building with an internet connection, but it is necessary to create a community around it, focusing on the tenant and his needs.
Ušće (Photo: Relja Ivanić)
Two years ago, several of the company`s business and retail facilities received the WELL Health-safety certificate, for the first time in Serbia. Is a safe, healthy and secure environment emerging as a standard in commercial real estate and can it be decisive in the decisions made by clients?
- In short: absolutely yes, safety and health come first in our sector as well. I must mention that the market has been significantly educated in this sense and today certification is a mandatory item when planning the construction of a business facility.
Our buildings were the first on the market to start applying world standards, so in the office portfolio we have buildings that are LEED and BREEAM certified in accordance with the standards that are present in all developed markets. In the operational phase of the project, the well-being concept is also very important, which is best illustrated through the WELL Health-Safety standard, the application of which we started first in Serbia.
Green construction and ESG principles have become an obligation when planning and financing commercial projects, and the tenants themselves are becoming more demanding and in the majority of cases do not even consider projects that are not standardized in this sense. The MPC portfolio is dedicated to its ESG strategy, so our complexes include solar panels, a composting machine, beehives, an urban garden and vegetable garden, along with electric chargers to support alternative modes of transport. MPC`s green plans and projects continue to grow and multiply across the entire portfolio.
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"Real Estate & Construction - Market-changing investments"
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