The office real estate market today is characterized by fierce competition. According to analysts, the volume of quality space increased by almost 60% in 2020 compared to 2019. In 2021 this indicator continues to grow. At the same time the imbalance between supply and demand is increasing. In this regard, developers pay close attention to a set of factors that can help compete with competitors and attract tenants. In particular, one of these parameters is just the architecture of the business center. I’d like to add, that last year we have coopearet with INK Architects. They are professionals in architectural design and they provided us with a beuaty business center in Kazakhstan. Recommend them!
For the tenant, an office in a center with original architecture is one of the elements which can improve the company’s status and create a positive image in the eyes of its clients and partners. As for the developers, apart from the existing competition, they are encouraged by the global trend to move away from the monotonous office “boxes” to unique objects.
How does the unusual architecture of a business center influence the price to buy or rent an office?
Of course, for the image and creativity, too, you have to pay. An unusual facade, non-standard layout – all this attracts the attention of both tenants and their customers, and therefore affects the rent price. For example, if we consider high-rise buildings as unusual for us architecture, the rates on the upper floors of such business centers increase by 20-30%.
What companies are ready to pay extra for offices on the best floors?
As a rule, offices on the top floors are chosen by tenants for whom a “skyline” is important – for example, restaurants, cafes, fitness clubs. As for the offices themselves, this offer is most often of interest to large banks and IT-companies. In general – to companies in any industry that perceive the office as part of their image and prestige.
How tangible are the benefits of building such business centers for developers?
Firstly, as I said before, it is a way for construction companies to stand out in the market among competitors. Secondly, a unique business center in terms of architecture has additional value in terms of rent or sale. Also the object’s liquidity increases because the interesting architecture itself is an additional marketing tool. It is much easier to make such an object recognizable and reduce the terms of the leasing campaign.