Will the offices be empty even after the pandemic?

"In the spring of last year, the offices were emptied and more than three-quarters of people worked from home. During the year, although employees began to return gradually, the situation was again reversed by the worsened epidemic situation. The return of people to the offices is thus expected in the coming months also in connection with the vaccination. We still keep the rent of our buildings at the level of 97-98 percent," says Martin Šmigura, investment director of real estate activities of Wood & Company in Slovakia.

This is only a temporary situation, leases are usually concluded for a period of more than one year, so most tenants do not consider early termination of the lease, which could lead to sanctions. It is expected that most companies will eventually return to the offices.

However, the overall occupancy of office space is also declining. The consulting company Colliers International estimates that it should increase by 20 to 30% in Slovakia in the next two years. In the current year, the proportion of vacant offices could climb to 16%, while in the third quarter of 2020 it was still around 10%.

However, it must be said that the construction of new office space will no longer be as massive as before the pandemic. Since the beginning of 2020, four buildings with a total area of ​​more than 50,000 square meters have been added to the market. Seven completed buildings are to be added by the end of 2021. According to the Bratislava Research Forum, their total area will reach more than 87,000 square meters.

However, the overall occupancy of office space is also declining. The consulting company Colliers International estimates that it should increase by 20 to 30% in Slovakia in the next two years. In the current year, the proportion of vacant offices could climb to 16%, while in the third quarter of 2020 it was still around 10%.

For example, the emerging Lakeside Park 02 project near Kuchajda is profiled as an "anti-COVID". The building will use the so-called plate recuperation, in which there is no mixing of supply and exhaust air, disinfection with silver particles, and non-contact control of elevators.

"These technological elements were added only during the project work with regard to the development of the situation," added Šmigura. Similar measures may become the standard in the future.

Source: // ABS