Last year was the second in a row in which pandemic played a significant role and affected many business processes. After the first shock of 2020, in 2021 practically every industry has already been getting better and better at navigating the new reality and developing standards that suit it. For the commercial real estate sector, the last 12 months have been marked by transformation, searching for new solutions, and testing them, as well as facing challenges, both in the area of operations and space design. As summarized by fit-out experts from Tétris, today's basis is proactivity and a flexible approach.
Offices reinvented
Employers have come to understand the permanent nature of the pandemic-induced transformations in our lives, while at the same time they already know that offices are needed, and remote working is not an ideal solution in the long run either. We're getting inquiries related to making the kinds of changes that will make employees more comfortable and secure in their jobs. In 2021, the revolution in office design has accelerated. Corporate headquarters are supposed to support building relationships and creative teamwork. Space plans now take into account the needs of people working stationary, hybrid, and remotely. There are more solutions and zones adjusted to different types of work such as quiet rooms, phone booths, small meeting rooms, chill-out areas, spaces for creative and project work. The importance of the PropTech area, i.e. new technologies which are supposed to improve the functioning of an office, is still growing. For example, applications and building systems for booking hot desks, conference rooms or parking spaces. We are also designing virtual receptions with access control, where a guest notifies their arrival via tablet and this information is transferred remotely to the right person.
Paweł Brodzik, Managing Director in Tétris, Hub Lead – CEE & Germany
Most of the projects that we carried out last year were located in the regional markets, i.e. in Wroclaw, Cracow and Tricity. This prompted us to further develop teams in these regions. Some of the units already existed before, but now we have strengthened them or built more teams around them. This allows us to maintain the high quality of service our customers are accustomed to and to expand our offer.
Rajmund Węgrzynek, Managing Director of Tétris in Poland and CEE
Logistics = gymnastics
We associate the current times with a lot of uncertainty. The quotes we receive from our suppliers can change within weeks or even days. They also quickly become out of date. These challenges affect the entire construction and fit-out industry. This requires us to take a completely new approach to planning the individual stages of a project. Decisions have to be made much faster. We rely on our regular suppliers, with whom we have already developed a stable model of cooperation. Negotiations are also facilitated by the scale of our operations and the number of simultaneous projects.
Rajmund Węgrzynek, Managing Director of Tétris in Poland and CEE
PRS on the rise
Importantly, financial experts also see this segment as very safe, with great potential. Residential real estate is increasingly being considered by major institutional investors. In Q3 2021 the number of apartments in the PRS segment in Poland amounted to ca. 5.5 – 6.5 thousand units. About 25 thousand units have been contracted or are under construction. We have learnt the lesson from our sceptical approach and we no longer assume in advance that trends from the West will not establish themselves in Poland or in other CEE markets. Enriched with this experience, we are more courageous to act in Romania or Hungary, which have great potential for the development of the PRS sector. For the time being, the institutional lease is taking its first steps there and local entrepreneurs do not yet see its potential. However, I can safely say that these will be the countries where PRS will make an impact.
Paweł Brodzik, Managing Director in Tétris, Hub Lead – CEE & Germany
In managing fit-out projects in investments for rent, our experience from the implementation of large hotel facilities is very useful. We know very well which materials are not only aesthetic, but above all durable. The scale of this type of facilities, with dozens of apartments, also requires a network of trusted subcontractors, suppliers and manufacturers who are able to provide the required quantities of materials in the planned time. We have already completed projects in the premium segment, such as Zlota 44 or Cosmopolitan apartments, as well as those aimed at the middle class – prepared for RealCo, Aurec or Dom Development.
Rajmund Węgrzynek, Managing Director of Tétris in Poland and CEE
Where are we heading? – the potential of 2022
In recent years, Tétris has been implementing more and more modernization projects. We expect that the number of fit-outs, also in the Design x Build model, in existing developments will continue to grow. Managers and owners of office, retail, and hotel properties want to follow the trends and compete with new buildings. The aspect of decarbonization and sustainable construction is also important. An interesting situation is in the retail sector – here we can clearly see a turn towards mixed-use projects. In shopping centers, some spaces are being transformed into offices or recreation and entertainment zones. Another very interesting and growing trend are multifunctional complexes which are built based in and grow around historic buildings. They can offer retail and service, residential, hotel, office and entertainment facilities. They organize various types of festivals, exhibitions and family events. This strategy is being implemented, among others, in the Koneser, the Elektrownia Powiśle, the Hala Koszyki or the Browary Warszawskie, where we have been involved in the construction of many impressive spaces.
Rajmund Węgrzynek, Managing Director of Tétris in Poland and CEE
From 2023, according to the new decarbonization regulations, companies will report on ESG. Besides, in the business world, sustainability is no longer something special and is starting to be seen as a mandatory part of a company's DNA. As a result, it's not just a matter of having corporate headquarters in certified office buildings, but responding to the needs of users who expect everything that is currently created in the real estate world to consistently take sustainable environments into account. All these factors will influence the decisions of building managers regarding further modernizations.
Paweł Brodzik, Managing Director in Tétris, Hub Lead – CEE & Germany
A subsidiary of JLL, a Fortune 500 company, Tétris is a leading design and build firm. Its mission is to design and build vibrant spaces that inspire people to think better, work better and live better. With a global team of engineers, architects and designers, Tétris is able to provide a full range of services to meet clients' needs from design to construction and furniture selection (FF&E). Globally, since its inception in 2003, the company has grown in 18 countries on three continents, with a team of more than 820 people located in 35 offices. For more information, visit tetris-db.com.
