Property Systems Extends New Work Offices Network

New Work meeting room.

The center will provide the possibility for startups and those with large space requirements in what is described as a more rural environment than the Pest New Work shared-services offices.  

The company is planning further development of its NWSO network in Hungary and the region and aims to become the “leading independent provider of shared-serviced offices in CEE” according to Hubert Abt, the CEO/principal of Property Systems.

In its latest Pest development 2,500 sqm of space is under construction at the RM2 Business Center at the Váci 16 office center. Property Systems says it sees the necessity for a presence in the Váci Corridor as more than 25% of the Budapest office market is concentrated there; the company says it has plans for further development in the area.

“The existing centers have been developed for different profile companies in different locations in and around Budapest,” said Abt. Property Systems began its operations in 2013 with its first New Work complex at the R70 office center in Rákóczi út. Following that, the modernistic-style complex the Anker Business Center was opened in District VI in the centrally located Anker köz. The BJ48 Business Center, in a protected building dating back to the end of the 19th century, provides a more classic environment on Bajcsy-Zsilinszky út.

 Classic Location

In another classic location, the company established a NWSO at the refurbished A100 building on Andrássy út. The complex consists of 1,700 sqm on two floors in the building, a new wing was constructed in 1999 and the classical and modern parts are connected by a double-level atrium with a glass-roof. Property Systems defines a “work place” as a 10 sqm area and has an average of around 200 work stations per business center.

The NWSO network has an 85% plus occupation rate in Budapest with clients spread across the different market sectors: 11% in IT; 10% commerce and production; 8% finance; 8% engineering/construction; and 8% legal. With regard to the length of leases, 70% agree a lease of more than one year and the average client stay is 3.5 years.

“In Budapest we host 87% national entities and 13% international. In Warsaw, the proportion of international clients will be much more as the market is driven by international enterprises. In Kyiv we have over 80% IT-related clients, financed from international sources,” said Property Systems.

The company is financed through a combination of private capital and family money and will have invested around EUR 5 million in the region by the end of the year with a further EUR 5 million planned for 2019. It is planning to put out 20% of the company for public tender, but aims to maintain its independence.

The projection is to have 45-50,000 sqm of NWSO space in CEE by the end of this year. In Budapest this would be 20,000 sqm in nine locations, in Warsaw 20,000 sqm in eight locations, 2,000 sqm of co-working space in Kyiv and the possibility of an additional location. In Prague the company has 3,000 sqm of space with one possible additional location. Further locations could be Bucharest where Property Systems is working with the CE developer Portland Trust and the regional Polish cities of Krakow and Lodz.