According to CBRE research, employees wish to go back to offices to get a healthier work-life balance. However, the role of offices has changed. What does it mean for employees and investors, explains Ofer Kerzner.
KIEV, Ukraine, July 27, 2021 /PRNewswire/ -- The investor Ofer Kerzner is certain that soon offices will turn into a place for communication, educational events and career development. He states: "People want a business center to be a comfortable place to spend the whole day in. Clients wish for a children's zone, lounge zone, cafés and restaurants in a building and within walking distance."
The hybrid office model can suit these needs. It implies a chain of main offices and of small satellite ones near big apartment complexes. It allows employees to work within walking distance from home and has everything they need to rest from work.
For small companies and freelancers, co-workings might be suitable. Such format attracts clients with flexible working hours, negotiable lease periods, various sizes of rented spaces and the ability to quickly change their working format.
Co-workings are great places to extend one's network and get help from colleagues. One of the first co-workings in Ukrainian capital Kyiv was opened at "Art-zavod Platforma" for this purpose.
Another option for freelancers to work with similar-minded people are co-livings: apartments where a resident has a single private room and a shared common place. Co-livings gather people with similar values, they share household and spend free time together.
Globally office rents will rise in the first quarter of 2022 and return to pre-crisis levels in 2025. Ofer Kerzner suggests that 2021 could be the right time to invest in business centers because now investors can find objects at reasonable prices.
In Kyiv, the trend for a hybrid office model can kick-start new projects on the Left bank of Dnipro River. There are plenty of former industrial zones there, which can be transformed into up-to-date business centers. Low capital costs for purchase and renovation, shorter project duration and smaller market density will enable investors to offer quality office space at 2/3 of the B-class rental price near the city center.
It is important to keep in mind, though, that unlike in stable global markets, where it is typical to sign a 10-year lease contract, in Ukraine 3-5-year rental periods are more common.
Co-livings will switch to medium and long-term leases, as it is less risky for landlords.
