What kind of incentives for office buildings tenants?
Competition in the office market is definitely growing. Only in Warsaw alone, office space at the end of the second quarter of 2017 amounted to 5.16 million sq m.
In the first half of 2017, there were a total of 131 thousand sqm, and another 754 thousand sqm is currently under construction. In addition, about 1 million office spaces in the capital have a valid construction permit and are waiting to start implementation. This situation creates great opportunities for tenants who can use not only a diverse market offer but also incentives for tenants, whose developers try to win customers to choose a given project.
Financial incentives for tenants of office space
The group of financial incentives for tenants used by developers or building owners are those that have a direct or indirect impact on the financial result of a given transaction.
The office developers are outdoing ideas on how to attract tenants, both through various incentives that translate into the final financial terms of the transaction, as well as features that will distinguish their investment from many other existing or building objects. – notes Martin Lipiński, Director – Head of Office and Tenant Representation with AXI IMMO.
As Martin Lipiński mentions, classic financial incentives applied to tenants offered by the owners of office buildings include:
- rental holidays,
- free parking spaces,
- contribution to the cost of arranging the office
- one-off cash bonuses for moving.
Non-financial incentives for tenants of office space
An interesting non-financial trend on the office market is the increasing popularity of mixed-use facilities, i.e., those that offer office functions such as service, cultural, or commercial functions.
Such buildings are attractive from the point of view of tenants, mainly due to the time saving they offer to employees. If a company decides to invest with an expanded retail and service area with, for example, a laundry, bank branch, clinic or grocery store, its employees can arrange important matters in a few minutes, which significantly simplifies the organization of everyday life. – comments Martin Lipiński.
Also, the gastronomic offer is attractive from the point of view of tenants; by arranging business meetings in a local restaurant, you can save the time needed for commuting. By choosing a mixed-use facility, the company can, therefore, increase the efficiency of its employees.
See also what packages and incentives developers offer to tenants of office space in the tenant guide ‘Project Office’ published by AXI IMMO.
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