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.

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