The benefits of a mixed-use project : interview with Tomasz Lisiecki, Chief Investment Officer of TriGranit.
Nowadays many developers decide to build investments consisting of buildings with different functions (for example with commercial and office). Do you think that this trend will strengthen and displace the tendency of building monofunctional complexes? If so, why?
I wouldn’t say, that this is about trends, this is much more about the potential and conditions of the development plot. In case of a development site in a city center surrounded with commercial and entertainment facilities, many questions and alternatives has to be examined. In some cases, e.g. classic office corridor areas with shopping center nearby, it’s not worth developing multifunctional schemes. However, in case of a development in e.g. a residential or industrial area, where no office and retail schemes are available, sure, it’s worth developing mixed-use projects to make the office workers all the necessary amenities available. In general, there are numerous benefits in mixed-use project – for developers it creates higher property value, for office workers these projects offer great reach to various type of services in one place, for communities, a mixed-use development can provide not only a new, recultivated area, but a new city center at the same time – said Tomasz Lisiecki, Chief Investment Officer of TriGranit.
Investment Bonarka City Center is implemented in accordance with the city centre concept, where initially a shopping centre is erected, followed by office developments in its close neighborhood. Why have you decided on this kind of strategy?
TriGranit has always been known for so called mixed-use developments, or city centers. We prefer building a kind of city center, that creates a new district in the life of the community and a new city center. Bonarka City Center was not our first and only city center project. After completing Polus Center in 1996 & Westend City Center in 1999, both in Budapest, we developed Polus City Center in 2000 in Bratislava, and Silesia City Center in 2005 in Katowice was the fourth mixed-use project of TriGranit in Central Europe. What’s more, three of these developments are brownfield developments, which means recultivating and revitalizing of an abandoned land, boosting the areas’ economy and rejuvenating the local community. But all this extra efforts are worth it – all of our brownfield developments are still today one of the most popular and successful city centers in their given region, the city’s society.
The shopping mall next to the office building offers office space users easy access to shopping and entertainment areas that can be used at the end of the working day. Is it therefore an important factor that determines a greater interest in renting office space in this rather than in another investment?
It’s a much more complex question. Sure, the amenities offered to the tenants is of great importance. From this point of view, a mixed-use project offering after-work entertainment and shopping facilities or a midday lunch is an added value for office workers. However, the expectations of the tenants for reasonable maintenance costs are just as important. We can see a need for higher but at the same time reasonable facility management services, aiming at higher and higher standards. The green solutions and energy efficiency are fundamental aspects nowadays, the clients want to get great value for their money. As there is an oversupply on the office market, tenants can choose from lot of alternatives, and of course, they will choose that option, that offers the best value for money solution for them.
Source: The article was published on e-biurowce.pl, April, 2016