According to CBRE, CEE office products are the second most traded in the region. What can a developer offer to win in a competitive real estate market? Skanska Commercial Development Europe identifies five key factors which lead to the successful closing of a transaction.
1. Good relationships from the start
An open and friendly approach to an investor is the best way to develop a good business relationship and trust. “I reach out and talk to potential buyers. It helps me to find out what their expectations and investment strategies are. (…) I present profitable CEE markets, share our plans for divestments and offer further cooperation with Skanska”- explains Adrian Karczewicz, Skanska’s Transaction Director for CEE.
2. A smooth and quick transaction process
3. A market and yield
It is important to choose the markets with the highest potential and liquidity in order to provide buyers with a profitable product. CEE assets often provide higher returns than similar ones located in western European countries. Budapest (with its 7%) is among the most attractive prime office yields.
4. Product quality
- A building’s technical parameters: the isolation of underground floors and the quality of rooftop insulation
- A good design and the high quality of construction, underpinned by LEED certifications
- Lifts and efficient ventilation
- Factors influencing the exploitation of office space and employee:
5. High lease level
The process of acquiring new tenants is of crucial importance and is launched very much in advance, even at the moment when the company starts construction works. According to the latest ABSL report, foreign companies have already established over 1,000 SSC/BPO/ITO centers in CEE over the sector’s 15-year presence in the region.
According to McKinsey & Company office space demand will be constantly growing, attracting developers and, as a result, investors to the region.
(Source: http://www.skanska.hu/en/Media/Display-news/?nid=LXCPxEEF)