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Office Market News

A new focus of office space

The notion of office has changed significantly in today's pandemic time compared to the period up to just one year ago. The period of isolation has shown us how easy it is to work from home thanks to technology. However, it also showed us that the office as a gathering place for all employees is still very much needed and what are the elements that make it necessary for the growth of both individuals and companies.

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Changes in lease agreement terms? Start-up leading the way!

Explosion of teleworking, advent of flex-office, new organization of spaces: the place of the office in the post-Covid-19 economy is clearly being called into question.   The hypothesis of an outright abandonment of its use by companies obviously does not make sense. Read more!

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CEE Tenant Advisors – First Independent Tenant Representation Network in CEE

The Coronavirus epidemic is undoubtedly a real hard cost for businesses. The uncertainty surrounding this crisis is prompting companies to find sources of savings to reduce their costs. Rent and office management are the second largest expense item for companies after salaries. It is therefore relevant to ask the question of how to reduce the cost of your premises as much as possible and/or match the current needs of space with the current working constraints.

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Flexible office design in response to a flexible way of working

In just a few steps - the workspace turns into a space for education, entertainment or relaxation We live in a dynamic and challenging time that requires quick adjustments to change. The coronavirus pandemic has also spurred new reflections on work and living space. As working from home, as a necessity, very quickly replaced work from the office and imposed itself as an acceptable and effective model of work, it is now increasingly questioned how much "isolation" affects the well-being of employees and how to create an optimal balance of work from home and in the office. The office, however, has proven to be an indispensable factor in interaction, maintaining team spirit and an important element of business and corporate culture of companies. However, the organization of office space today is thought of much differently, and special care is taken to optimize the workspace and its flexibility. Flexible office - space according to user needs Flexible offices will certainly be an increasingly sought-after direction in the arrangement of office space because it will allow one spatial unit to have more purposes and ways of using that same space. Also a very important item is the optimization of square meters. The Croatian company Sobočan responded to these challenges by creating movo-mobile office units that, thanks to the flexibility, mobility and folding of products in space, can easily fit into different sets and enable different scenarios to suit the needs of space users. Although most of the working time of the work unit will be set in the form of a classic office space, it is very easy, if necessary, by moving them, separate and special zones can be created. For example, if an employee needs peace of mind to work independently, he or she can simply move or “push” his or her mobile unit to another part of the office, or a team of people can create their own space for a meeting or creative teamwork. In addition, we believe that the new way of working will bring flexibility in coming to the office, and thus for the need that not all work units are necessarily 'activated for work', but are simply activated upon arrival at the office. The special feature of mobile office units is that they can very easily be transformed into a classroom or space for education and lectures, conferences or arranged in another exhibition depending on the event being organized. In a classic office space filled with desks, we very often find ourselves in need of empty space free of furniture. With the movo, the central space of the office can be easily freed up for after work socializing, a banquet or for exercise before or after working hours, as all the elements are simply moved aside or pushed from one room to another. Returning to its original state and regular office setup takes minimal time, due to the ease of managing mobile work units. An example of office space that enables focused work, space for teamwork and meetings, education, socializing, exercise       We could see a similar trend in hot-desking office space (shared workspace), which was designed to increase employee flexibility and quality use of space. However, this trend is not accepted by most employees due to lack of personal space for work, disruption at work, frequent changes in the workplace, but also the need for daily packaging and repackaging of things and work materials. Therefore, we can say that everything that the hot-desking trend has proven to be an obstacle, is solved in this way of mobile and collapsible work units where everyone has their own that is safe and under lock and key. Of course, in doing so, it is important to ensure that office space supports flexibility through supporting infrastructure such as electricity connections, enough light and other elements. New times require new skills, and one of them is a quick adaptation to changes, new life and work trends. This way of long-term planning and thinking when designing and furnishing office space can certainly enable greater readiness for different scenarios and to be flexible just like a movo work unit.

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See how real estate prices are moving in Europe, Split is at the very top

SPLIT is the third most expensive city in Europe in terms of real estate prices in terms of income - at least according to the Numbeo page, which presents itself as the world's largest database on the cost of living, as well as the quality of life. Namely, the ratio of real estate prices and average income in Split is a high 20.3, according to the calculation of the Numbeo page founded by Mladen Adamović, a former Google software engineer from Serbia. Only Moscow and Paris are more expensive than Split Split is thus behind Moscow (ratio 21.12), which is in first place, and Paris (20.97), and ahead of Belgrade (19.77), Vladivostok (18.63), Gdansk (18.31), Prague (17.97) and Milan 17.85). Moreover, Croatia has two cities among the 20 most expensive - Zadar is in 13th place, with a ratio of 16.41, ahead of St. Petersburg (16.34) and Munich (16.27). Interestingly, London, which has a reputation as a city with unbearably high housing prices, is only in 20th place, with a ratio of 15.65. Zagreb in 33rd place, ahead of Madrid Zagreb is much lower than the two largest Dalmatian cities - where the price is so high primarily due to tourism - but again quite high, in 33rd place out of a total of 192 larger European cities on this scale. With a ratio of 13.47, Zagreb is ahead of Skopje (13.46), Madrid (13.37) and Ljubljana (13.35). In Split, according to the data of this specialized site, the price per square meter of an apartment in the city center averages HRK 25,403, and outside the city center HRK 18,694. Renting a one-bedroom apartment in the city center averages 3220 kn, and outside the center 2803 kn. In Zagreb, the average price per square meter of an apartment in the city center is HRK 21,765, and outside the center HRK 14,791. The average rental price of a one-bedroom apartment is HRK 3,625, and HRK 2,762 outside the center. On the other hand, according to the Central Bureau of Statistics (CBS), the average price of a square meter of a new apartment for sale in Zagreb was HRK 4,125 in the second half of 2020, not counting socially supported housing (POS) programs. Of course, Split is relatively more expensive than Zagreb due to the drastic difference in the average net salary. While in Zagreb it is HRK 6,947, in Split it is HRK 5,395 - therefore, HRK 1,552 less, according to data from Numbe. Also, while the average fixed interest rate on a 20-year mortgage loan in Split is 4.54%, in Zagreb it is 3.37%. In Zagreb, the price per square meter of an apartment goes up to 5 thousand euros, in Split up to 7 Recall, real estate prices continue to rise in Croatia, especially in Zagreb and on the coast, despite the pandemic, the corona crisis that caused a record decline in GDP and earthquakes in Zagreb and Banija. In Zagreb, the price of a square meter of an apartment ranges from two to five thousand euros. In Split, the price of a square meter of an apartment goes up to 6-7 thousand euros. "We even have 6 to 7 thousand euros per square meter. The limit has long passed the limit of reasonable prices, but while there are buyers, prices do not fall. If we had stagnant sales, then those prices would fall," said Meri Vulic, Split real estate agent. , in January for HRT. Real estate prices in Croatia grew more last year than in the EU And according to a Eurostat report from January, in Croatia in the third quarter of 2020, ie before the second, autumn wave of the coronavirus epidemic, real estate prices continued to rise. Moreover, while residential real estate prices, measured by the Eurostat House Price Index (HPI), in the European Union increased on average by 5.2%, in Croatia they increased by 6.9%, compared to the same period in 2019. It is also interesting that the price for sale in the last few years in the EU has increased significantly more than the rental price, although from 2011 to 2017 the trend was reversed, as seen in the above graph of Eurostat. Nevertheless, residential real estate prices in Croatia decreased by 0.6% compared to the previous, second quarter of 2020, while in the EU they increased by 1.4%. And the European Central Bank warned in its Financial Stability Report last November that prices in the eurozone were followed by a reality check, as the corona crisis took its toll and left more and more people jobless and reduced purchasing power. Source: Index.hr

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Who should be in the driving seat of the real estate innovation

The prolific change of 2020 has shaped the real estate industry more than anything else in decades. The digitization had been underway before the pandemic, but the speed of that shift has accelerated in ways that nobody could have predicted.   With all that in mind, many landlords and asset managers are currently re-thinking what their product and offering should be to stay competitive and how it should reflect all the latest trends (think digitization, remote work, ESG, wellbeing expectations, data). With all the goals that should be covered, it can be difficult for landlords to navigate the right way for their unique business case.   In terms of implementing the technology, one question gets repeated in the conversations I have: what is in the competence of landlords and what are the topics each individual tenant should address.   As I wrote in my previous article, stepping into this new era, I believe every building should have a digital layer to allow better life in buildings. To enable that, properties need to run on an operating system to create an elevated experience for occupants.   But every OS is a complex thing with many use cases to consider. So speaking about a commercial building, what does it mean? Where should you as a landlord or asset manager start?   From our perspective, the tenant experience platform has two verticals:   Connected building and portfolio – to set the infrastructure for future integrations, streamline communication, enable mobile access system, guest management, payments, issue reporting, on-demand amenities and services, energy monitoring and finally work with analytics to understand customer needs and preferences. Altogether, this presents the heart of the building. Empowering tenants – every tenant should be able to set their private digital environment, where they can operate their workplace in the new way of working (agile, hybrid, hub & spoke...) with features supporting on-demand booking of hot desks, meeting rooms, monitoring of occupancy, air quality data and much more The success of a landlord largely depends on the success of tenants. The success of a tenant company largely depends on the success of teams and individuals, their happiness, productivity, and in turn, loyalty.   Thus, sporting tenants should be one of the landlord’s top priorities. In conclusion, a progressive landlord should introduce both layers. This strategic approach puts landlords in the driving seat of these changes with the right tech infrastructure that attracts, retains and fully empowers tenants.   On top of that, it brings a full advantage to stay competitive in a market that is heavily shifting to flexible space operations. Finally, landlords get prepared for a tech-enabled future and successfully integrate both physical and digital aspects of life in buildings. With the right OS, your building is no longer a piece of hardware that requires CAPEX for every update, but rather a Tesla car that is getting updated to keep up with the always-changing world.   Thanks to the huge effort of our team, inputs from our clients and partners, we plan a significant upgrade of the Spaceflow platform which is going to be released in mid-2021. Our aim with this update is to empower landlords all over the world with the best off-the-shelf technology to implement both these verticals in an easier way. What to look forward to? Our platform will get a fresh look and will get fully integrated and customizable. All modules are currently being enhanced based on the product discoveries with occupants and long-term cooperation with some of the top global real estate owners. Stay tuned!

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Ergović: "Not a single tile fell from a lot of classically built buildings in the earthquake"

The President of the Management Board of Nexe Group, a member of the Council and the Council of HUP Ivan Ergović explained to N1 why he believes that in the reconstruction after the earthquake in Banja it would be better to use traditional construction instead of prefabricated buildings.

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The roots of room design in modernist architecture in Zagreb

As part of a project to explore the roots of our design in the legacy of modernist Zagreb architecture, we photographed the Kontrapunkt lounge chair in the Vatroslav Lisinski Hall (1958-1973), designed by architects Marijan Haberle, Minka Jurković and Tanja Zdvořak. The project will be fully presented during 2021, and was organized in cooperation with the Tourist Board of the City of Zagreb and public institutions whose architecture is part of the modernist architectural heritage. Few places in the world have such a firmly rooted tradition of modernist architecture as is the case in Zagreb, the capital of Croatia. It is a heritage that is the foundation and inspiration of the design language of our products. This recording of Kontrapunkt (design: Neisako) is part of a larger editorial realized in some of the main buildings that are the heritage of modernist architecture in Zagreb. "Selected products formally or textually refer to the ambiences in which they were photographed, sometimes emphasizing their origin, and other times their modernity," said Dora Lončarić from the architectural studio Biro, art director of the editorial. "Although modernist architecture and Prostoria's products have been separated for more than half a century, they naturally cooperate, complement each other, speak a similar language, and are equally uncompromising. These productions are neither about going back in time, nor about completing a belated future, but about exploring and converging values. It is through the symbiosis of inherited modernist architecture and contemporary design that the room as a regional leader in design, at least virtually realizes the synthesis that was set as the starting point of the unfinished modernist project, "said Maroje Mrduljaš, architectural theorist. Art Directorate of Photography: Bureau; Photos: Marko Mihaljevic

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