19.07.2022 | Mihaila Tala 1

Interest in new Class A offices will increase rapidly

With the rising energy prices and growing utility bills, as well as the need for modern and flexible offices, the interest in newly built or under-construction Class A offices in the nearest future will increase significantly. Tenants who are currently renting Class B offices or Class A offices built a long time ago could be the most active ones in looking for opportunities to save money and at the same time to use top-quality workspaces, real estate development company Pillar Capital forecasts for newspaper Dienas Bizness.

According to Pēteris Guļāns, the Company's Development Director and Member of the Board, the new Class A office buildings are distinguished by their high energy efficiency and modern technological solutions used in their construction.

"Due to high energy efficiency and modern technical solutions, the total rent and utility costs in the new Class A offices are expected to be similar to the total costs for tenants in Class B offices. This is an important reason to make a decision to rent space in a new Class A building,"

says Mr P. Guļāns, referring to the company's experience and talks with potential tenants of the under construction office building in the New Hanza territory.

In Riga, many office buildings were constructed 10-20 years ago, according to the technological and energy efficiency requirements of that time, which are very different from the solutions and requirements today. The most important difference is in the technical characteristics of the buildings, such as thermal insulation, thermal values of windows, solar protection for windows, lighting, efficiency of ventilation and cooling equipment. There is also a difference in the ability to easily adapt the space to the needs of a specific tenant, which new Class A offices can provide, as developers account for the current market trends and tenant requirements when designing their buildings. For example, by offering co-working spaces, which allow tenants to plan their office workload more easily in the so-called hybrid working conditions, Mr P. Guļāns explains.

"Both modern solutions and the well-being of the company's employees are important to the tenants, as they help to attract and retain skilled workforce. As a result, companies are increasingly demanding more and more from the office and the additional services needed to meet the day-to-day requirements of the company and its employees."

P.Guļāns

Pillar Capital is currently continuing the development of the New Hanza territory. The first of the planned office buildings will be put into operation in early 2023, in the area located near the quiet centre of Riga, and it will be an almost zero-energy building with solar panels ensuring the consumption of communal electricity, and whose compliance with the principles of sustainable construction will be certified by the BREEAM Excellent certificate.

The New Hanza's office at 1, Mihaila Tāla street has 6 floors in the main building and 12 in the tower. The building will have a total area of 16 700 m², of which 12 680 m² will be for rent. The ground floor of the building will comprise 800 m² of commercial space, 300 m² of which will be dedicated to catering services. The smallest office is available from 150 m² of area.