Office Villas

Villas are gaining ground in front of office buildings

Although in office buildings, the activity of a company can be organized more easily, more and more companies are leaving office buildings turning their attention to spaces in villas or apartments in villas.

“The main reason is the obsession with reducing fixed costs, generated by the economic and financial situation,” said Irina Petrescu, ESOP partner. A modern office building indeed gives a different image and high comfort to tenants. The original open space can be modeled and customized according to customer requirements.

In most buildings, especially class A and B, there are several facilities specific to office activity that are not found in villas: IT infrastructure, internet connection, and telephone lines, high-performance air conditioning, increased security, underground parking, etc.

However, the economic crisis has put most tenants in front of a new reality: costs that are too high in relation to what they can afford or what they foresee they will be able to afford in the future. “Now the reverse of the medal of increased comfort appears: everything is paid for with hard money; the parking spaces exist, but they are for a fee (80-150 EUR / place/month), the administration of the building is ensured, but the costs are very high: initially estimated at 3-3.5 EUR / sqm, in reality, you can reach at 4-6 EUR / sqm/month, and this explains the companies’ desire to find more accessible spaces as budgeted “, says Irina Petrescu, ESOP partner.

In this context, villas return to the attention of tenants as viable alternatives, which can reduce the burden of fixed costs of companies. A case study provided by ESOP shows a significant difference between the costs for space in a villa and space in an office building: For example, for a class B office space, 300 sqm, of 14 EUR / sqm, with a minimum of expenses and utilities 5 EUR / sqm, 5 underground parking spaces (80 EUR / place), results in rent of 6,100 EUR + VAT.

In the case of a villa of 350 sqm, in the same area, the price of 12 EUR / sqm, the average expenses and utilities per year are around 400 EUR / month, the parking spaces are in the area, resulting in a total cost of 4,600 EUR, i.e., 25% less. Given that most villa owners are individuals, VAT is no longer added, so they benefit from a 19% reduction in cash flow pressure.

“If we add to these the intimacy of a villa, we explain why more and more small and medium-sized companies are now reorienting towards villas,” says Irina Petrescu, ESOP partner.

Maria Neda

PR & Media Coordinator, PR & Media Consultant, with background as a journalist in the economic press and experience as a consultant in Urban Development.

Postari similare

What areas do office tenants come from

The areas from which office tenants come reached a balance. A new sub-domain, e-commerce, is growing and giving a boost to the field of professional services, of which is part, according to the monitoring carried out by ESOP Consulting in 2020 and in the first month of 2021. An example in this regard is the […]

Read more

Dentotal dental products distributor moves its offices in Equilibrium I

Dentotal rented a 650 sqm office space in the Equilibrium I building through the real estate company ESOP Consulting. The medical and pharmaceutical sector rose to a market share of 10%, in the first nine months of 2020, as a percentage of the rented office space in Bucharest, compared to 3% last year. “Dentotal is […]

Read more

The Boutique Office Buildings in Bucharest Keep Their Attractiveness in 2020 for Tenants and Investors

This year, two new boutique buildings have been put into use or delivered, with premium finishes and up to 10,000 sqm, in central areas. They will have a total area of 13,000 sqm of class A office space. Next year, it is estimated that two more buildings of this type will be delivered with a […]

Read more