High demand for modern office space for the next two years
Increased demand for the next two years for office space – How prices are formed, what are the characteristics of the office market
Larger spaces per employee in their target, in response to the coronavirus, the companies looking for offices in Thessalonikiat the time, in fact, that the demand for these properties is estimated to be strong for the next two years.
Demand for offices is strong for three years, according to her study Dane | Member of the alliance of BNP PARIBAS Real Estate for the second half of 2021. As he points out, the demand for these properties has been influenced by the other covid 19 in the way of working / teleworking, but also in the working conditions as well as in the more intense turn towards the modern office spaces (category A) in popular areas.
It is noted that the yield for office space A category ranges from 6% to 6.5%.
How prices are formed
In the city center rental prices range between 9-16 euros / sqm for popular areas and 6-11 euros / sqm for secondary roads. According to the Danish study, rental levels depend on the condition and characteristics of the property.
At the same time, the average selling price on the most popular street, Tsimiski Street, ranges from 1,500 to 3,000 euros per sqm, while in Andrianoupoleos, which has offices, the average selling price is lower, namely from 1,200 to 2,200 euros.
According to the study, in western Thessaloniki, projects for offices belonging to the A ‘category are in progress (mainly on October 26).
What are the characteristics of the office market
The main features of the office market for the second half of 2021 are:
– Coronavirus has boosted demand for modern Class A offices, and in many cases the pandemic has delayed the completion of agreements, especially in cases where the prospective buyers or tenants were multinational companies.
-Remote work (teleworking) was used by most companies.
In many cases, international companies have decided not to rent offices with long-term contracts, but to work with companies such as Regus, which leases equipped offices.
-The demand for offices in the city center of Thessaloniki remains high.
– The increased demand for offices stimulated the construction activity with the result that the interest of the builders has turned to Western Thessaloniki, as there are available plots.
Investors prefer stand-alone buildings rather than individual offices