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October 11, 2019
RedakcjaRealko Redakcja Realko

Why building owners have to start counting every penny?

Dlaczego właściciele budynków muszą zacząć liczyć każdy grosz

The global economy is rushing forward, and with the progressive automation of production – business is increasingly moving into the service zone. More office buildings are emerging from the ground to accommodate crowds of employees in industries such as IT, finance, advertising and consulting. There is a growing number of commercial spaces around the world – from China, through Malaysia, Poland and the United States. In the era of quickly rising buildings, new technologies and the trend of flexible lease agreements, offices are becoming increasingly accessible. What does this mean for landlords and tenants?

First of all, building managers must focus their attention on the tenants’ satisfaction. It looks similar to the labor market. Once, having a secure job was a value in itself. Today, employees in developed countries know well that if they are not satisfied with their job (e.g. because of too low salary, poor work-life balance or boss abusing power), they can easily change it to another one. This forces employers to create conditions that will make employees want to stay.

A “good” building is not enough

Today in the office market it is not always enough that someone offers a nice space in a good place. Imagine that across the street there is a competitive space for rent. If the offered space is just as nice, you might think that in this case the good price will prevail. However, although the amount of rent is crucial, tenants are increasingly asking building owners about other things:

“What proecological solutions does the building offer? How about occasional attractions such as sporting events, competitions or food truck rallies? And what about additional office equipment? May I count on a projector, flipcharts and an access to fresh fruit for my employees?”

These types of questions are closely related to the requirements that employees have for employers. Business needs better comfort and a more favorable environment to maintain the highest efficiency in a speeding reality. Whether the building has a terrace with greenery, modern air conditioning, a nicely furnished lobby and a canteen with good coffee (we emphasize: good) is beginning to play an increasingly important role. Landlords cannot underestimate these factors if they want to have solid tenants who will stay for longer.

How technology allows landlords to save money and let tenants have better conditions

The truth is that pleasing a tenant costs money. To meet his needs, landlords must start counting money more carefully. The solution lies in technology.

The greatest cost associated with entering into transactions on the commercial real estate market is the commission for the broker. Usually, its amount ranges between 5 and 10 percent of the value of the contract, which in many cases equals tens if not hundreds of thousands (zlotys, dollars, euros…). This cost is covered by the property owner, and for this reason he is often unable to offer the tenant a lower rent or additional contributions. Even though the broker is not an indispensable party to the transaction, his service is expensive. This exorbitant price affects both the tenant and the landlord.

How does technology solve this problem? By allowing you to eliminate the broker from the lease process. The Realko24 online platform connects well matched tenants and landlords, so they do not have to rely on real estate agents’ services. The database of landlords is so extensive that you can easily find space yourself. This also means that the fees are lower: the commission for each landlord is the same and amounts to only 1% of the transaction value. The money saved in this way can be invested in the building or the tenant, increasing his satisfaction and loyalty.