Biggest lease transaction of the year in Kaunas concluded
The international real estate advisory firm Newsec provided tenant representation services to Nordic and Baltic telecommunications leader Telia in concluding an office lease transaction with Prime Biurai UAB, the developer of the Prime Business Centre. It is the largest office leasing deal this year on the commercial real estate market in Kaunas.
The Prime Business Centre on Savanoriu Avenue, one of the arteries of the city of Kaunas, has a gross area of 5,600 sqm, of which Telia will lease 3,790 sqm for its needs. The company will be the business centre’s largest tenant, occupying more than 67% of its total space. Telia plans to move into the new premises at the beginning of next year.
“Telia had several office options to choose from, but aspects like the competitive price-to-quality ratio, convenient location, rational technical solutions, efficient office layout and landlords’ flexibility led them to ultimately opt for the Prime Business Centre,” says Martynas Babilas, the Head of Tenant Representation in the Baltics at Newsec.
According to Vaida Gicevičienė, who heads the Real Estate Team at Telia in Lithuania, while Telia currently is still working out of a building that it owns, a change of office has been under consideration for some time, since the layout of that property is no longer suited to the company’s needs.
“We think the setting for work is closely tied to employees’ motivation and effectiveness, so we’ve made an effort to improve conditions for our employees. The company currently employs about 350 professionals, which is why it was extremely important to ensure an ability to create spaces that are comfortable and well-suited to working. What caught our attention at the Prime Business Centre was its location and the layout of the premises, which we will be able to fully adapt to our needs,” Vaida Gicevičienė notes.
She says that in looking for new office space, the company gave importance to both how its needs were met and the price-to-quality ratio. The fact that the Prime Business Centre is currently seeking to obtain BREEAM (Building Research Establishment Environmental Assessment Method) certification also contributed to Telia’s decision. Rated Class A for energy efficiency, the Prime Business Centre stands out for functionality – advanced heating, ventilation and air conditioning systems ensure a maximally comfortable work setting.
“Another aspect that led us to choose the Prime Business Centre was its highly convenient location. The property is only a couple of kilometres from our current office, so the move to a new place shouldn’t cause any inconveniences for our employees. Moreover, right next to Savanoriu Ave. 367 we have our technical base, where another group of Telia professionals work, so on moving to the Prime Business Centre we’ll essentially have all our units in a single courtyard, since the territories are adjacent,” Telia’s real estate team lead adds.
Nerijus Dagilis, the CEO of Prime Biurai UAB, notes that once Telia moves in, all space at the business centre will be fully leased. The property’s remaining space (approximately 1,900 sqm) is leased by the IT firm Dassault Systemes UAB.
“In designing the Prime facility, we focused on the highest standards of construction and the needs of today’s tenants: we installed advanced engineering systems at the business centre, ensured office spaces are flexible, and provided tenants with a spacious parking area. The advantages of the Prime Business Centre also include its modern surroundings – the property is located alongside upgraded urban leisure spaces. The decision of international companies like this to move into the business centre that we’re managing proves that we are able to satisfy the needs of progressive corporations operating on a global scale.
Martynas Babilas points out that the rapidly growing Kaunas office market offers a wide choice of options for tenants who are thinking about enhancing their work environment.
“Kaunas’s office market expanded 12% in the first half of 2020 and currently comprises about 253,000 sqm. It is the fourth-biggest office market in the Baltic region. Such rapid growth in the supply of offices has given tenants a broad choice of possibilities, something Kaunas didn’t used to have, as previously there was a shortage of modern offices. Now is the very best time to make a choice and agree on a new office in the city. This Telia and Prime deal illustrates how companies are taking care of their work setting and flexible office solutions are making it possible to offer employees a comfortable, safe and healthy working environment,” Mr Babilas says.