The three-phased BSQ Business Center project will provide 390 work stations in 3,500 sqm of space at the Buda Square property, an earlier generation 15,000 sqm office center has been acquired by investors and is undergoing renovation. The deal was signed last December and the first phase of the BSQ Business Center provides 133 work stations.
“The developer creates the shell and core and we bring life into the building, bringing the hospitality,” explains Hubert Abt, CEO/principal of Property Systems. “We regard ourselves as an incubator in a building, as we invest an average of EUR 500 in setting up each work station. The BSQ Business Center will include a terrace area and a connected pedestrian area,” he adds.
Meanwhile, the latest NWSO development on the Pest side of the river, the RM2 Business Center in Váci út, will deliver 3,500 sqm of space with 300-400 work stations. Abt sees a necessity for a presence in the Váci Corridor as over 25% of the Budapest office market is now concentrated there.
“In Budapest, suitable locations are rare and we are also limited by the high-class “A” office rents. We do not see the possibility to raise prices on our tenant side to meet these rents, so in this way there is no way for a serviced office provider to make a profit at this level of rent,” adds Abt.
The company has a strategy of establishing offices in a variety of locations for various different profile companies in Budapest and the wider area. It began its operations in 2013 with its first NWSO complex at the R70 office center in Rákóczi út. The NWSO network has an 80% plus occupation rate in Budapest, with clients spread across market sectors including IT, commerce and production, finance, engineering/construction and even eight from the legal field.
The company is not only operating in Hungary. In Poland, Property Systems plans to have a portfolio of around ten business centers by the end of next year; in Prague there will be two or three by the end of 2019; and a further one or locations in Bucharest will be signed.
“The company is currently valued at EUR 10 million and we need around 18 months to bring a center to life, to an occupancy of 75-80% plus,” Abt notes.
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