Will the mixed-use projects dominate the market

Offices, conference area, hotel, services, retail passage, cafes, restaurants and attractive public space around the facility. Will the investors of office projects bet on the investments that include multiple functions?

High level of supply continuing on the office market makes investors more willing to reach for custom solutions and introduce changes in the structure of the projects. On both the Warsaw market and in the regional cities, there are more and more multifunctional projects, which paradoxically are still treated as a niche. It seems, however, that this type of facilities which are more attractive for tenants than the strictly office projects, in the long run have a chance to become a significant part of the commercial real estate segment.

In the referred projects, the hotels are often designed along with the office buildings, and the entire complex is also enriched by conference, recreation as well as retail and service zone. The buildings are often accompanied by well-arranged public spaces surrounding them. Such investments instantly have a larger audience, because they provide a set of basic services on the premises. The hotels emerging in such buildings provide a broader service in the complex and attract customers to the retail zone also outside working hours of the offices.

The more functions the project offers, the easier for tenants

Bartłomiej Zagrodnik, CEO of Walter Herz consulting company, admits that the way of functioning of the companies, as well as the requirements of the tenants when it comes to the leased office space are closely related with the expectations of their employees. - The office space, as well as the entire complex, has to provide a maximum comfort in everyday functioning in the workplace - notes Zagrodnik. - The investments, which in addition to the standard catering service as well as retail and service points, offer direct access to all kinds of institutions, such as medical services, a fitness club, restaurants, cafes, pubs, kindergarten, as well as hotel located on the premises, which is a great convenience for business travelers, attract special attention of the companies - says Bartłomiej Zagrodnik.

Walter Herz experts, who are currently negotiating the implementation of 8 hotel buildings with the total area of over 50 sq m, pointed out that the construction will require a large involvement and appropriate approach at the stage of planning and designing the building from the developer. - It is about the specifics of construction of a hotel. It is about separating the elevators and entrances to the building and breaking down operating costs through proper design and installation of customized water and sewage system, which is much more elaborate compared to the buildings that fulfill the classic office function. All of these divisions are designed to optimize operating costs attributed to each function, and finding the most rational way of sharing them between the tenants. A good arrangement of the dining area, designed according to the number of hotel stars, or the use of additional attributes of the building, such as the placement of the terraces in the case of high-rises and other attractions in the building are also very important. - say Walter Herz experts.

The most dynamic market to test mixed-use projects is Warsaw, but also other cities. Investments offering different functions are emerging in Wrocław, Łodź, Gdynia, Lublin, Katowice, Poznań, Rzeszów and Szczecin.

Łódź

Arche company is planning a multifunctional building in Łódź at the intersection of al. Włókniarzy and al. Mickiewicza Streets. The complex will combine a hotel, office and service function. In a five-storey building there will be a hotel with 300 rooms and several thousand square meters of office space and conference rooms.

Piotrkowska 155 office and hotel complex in Łódź will include three buildings with a nine-storey office tower measuring 76 meters, a seven-storey hotel and a five-storey office building. After the opening, which is scheduled for the first quarter of 2018, the facility will provide more than 25 thousand sq m of space, including 21 thousand sq m of A + class office space and 4 thousand sq m of retail space. Hampton by Hilton hotel with 149 rooms will be connected to higher office building with a common ground floor and the first floor, where the area of 2 thousand sq m will include shops, cafes, restaurants, a fitness center and a medical clinic. The investor, Bacoli Properties company plans to start the construction work in November. The company is currently continuing to prepare the site for the construction.

In the third quarter of 2016, Warimpex Polska company intends to start the construction of the office building in Łódź. The facility, which will consist of two buildings on the corner of Zachodnia and Ogrodowa Streets near the andel's hotel, which is also the company's project. The façade of the office building will correspond with the design of the hotel. The higher building will have a façade made of the red brick, and the five-storey one will have a glass one, which will reflect Pałac Poznańskich building. The authors of the design of the office and hotel declare that the elevation of the new building will refer to the history of Łódź. The office building will include an internal passage, which will be the link between Manufaktura, andel's and pl. Wolności square. Such solution is to activate the surrounding space and recall the tradition of the city associated with the passages inside the courtyards. The ground floor of the building, with the area of 3.9 thousand sq m, will include a retail and service points, on the upper floors there will be offices, on the ground floor there will be restaurants and bars, and below there will be two levels of parking.

Wrocław

The apartments, a hotel and the offices were designed in the multifunctional complex OVO Wrocław, which was built by Wrocław's Promenada Staromiejska promenade and will soon be open. The operator of the five-star hotel, which will include 189 luxurious rooms, is DoubleTree by Hilton. The building will also include 7 conference rooms, which together with a banquet hall can host up to 500 people. In addition, it will have a sports club, a fitness center with a swimming pool and SPA, restaurants, a cafe and a casino. It is worth noticing the original shape of the building, which resembles a drop of water with a façade without the edges and corners.

Two years ago in Wrocław by Plac Konstytucji 3 Maja square, Wisher Enterprise company built Silver Tower Center, which combines different functions. It consists of two complementary segments with a higher 14-storey part, where on most floors there are offices and a 6-storey lower part with a hotel and conference center as well as retail and service space. The property located close to Wrocław railway and bus stations is distinguished by the shape, which invigorates the eastern end of Pilsudskiego Street. The property has an elegant glass façade, which has been divided into vertical, clear profiles.

Warsaw

The flagship Warsaw mixed-use project is Koneser Praga Center located on the 5-hectare plot by Ząbkowska Street, in the heart of the old Praga district. The revitalization of Warsaw Vodka Factory included the adaptation of the historic buildings and the construction of the new ones. Koneser Praga Center is the first real estate development project in Warsaw, which involves a combination of so many functions. In addition to over 300 apartments built by BBI Development company, the building will include 25.5 thousand sq m of A and B + class offices and 21 thousand sq m of retail space, including a conference center, a hotel and the world's first Polish Vodka Museum. Commissioning of the whole building is planned for 2017.

The reconstruction of Hotel Europejski has been continuing in Warsaw for the last three years. After the renovation is over, the building is to join the Raffles chain and become the most luxurious hotel in Poland. However, it will not only be a hotel, but also a high class multifunctional facility. The prestigious building by Krakowskie Przedmieście Street will include over 100 luxurious rooms and suites, retail and service area, with among others, boutiques of global brands, as well as A class office space. The finishing works in the office and service area will last until the end of 2016. The launching of the hotel is planned for mid 2017.

The office building with the additional hotel function is to emerge in the center of the city, between the streets of Pańska, Śliska and Emilii Plater, where Emilia pavilion is still standing. The investor already has zoning for this project and is working on the architectural design of the facility.

Also in the Warsaw district of Mokotów, Eiffage Immobilier Polska and Avestus Real Estate companies are planning to build CUBE office building, with approx. 21 thousand sq m of space. A hotel with approx. 6 thousand sq m area will be adjacent to the office building.

The preparatory work for the construction of a spectacular investment in Modlin near Warsaw is also beginning. Warszawa Modlin Smart City will be built by 2020 in the area of the historic Modlin Fortress, a system of fortifications with the area 58 hectares, located at the confluence of the Vistula and Narew rivers. Currently, a feasibility study for hotel properties, which are to be built as part of this investment are under preparation. Modlin Fortress was bought from the Military Property Agency by Grupa Konkret, which has a plan to turn the area into a city of smart solutions. The company announced the construction of a spectacular complex with multiple functions. The project includes the construction of the largest in this part of Europe convention center, two hotels, a residential estate and office and retail space. The investment's location by Modlin airport and the proximity of nature reserves and the Kampinos National Park are an advantage.

Gdynia

A modern, multifunctional complex Gdynia Waterfront is being built in Gdynia by Skwer Kościuszki square. After the completion, the project will provide 90 thousand sq m of space in residential, commercial, retail and cultural facilities, as well as office space and a hotel with the conference center. The investor - Vastint company, which belongs to the Inter IKEA Group, took care of the layout of the public space with walkways and squares nearby the buildings. In the first stage of the project at the beginning of 2015, two buildings with office and hotel functions with the leasable area of 20 thousand sq m were commissioned. The office building has been designed entirely for headquarters of PKO BP bank, a four-star hotel operates under the brand name Marriott Courtyard. The subsequent stages of the project are currently in the planning phase and are to be implemented in the upcoming years.

Szczecin

According to the announcement of the investor, the BCG Szczecin company, the construction of the hotel building and an office building is about to start by Gdańska Street in Szczecin. Office, retail and hotel investment - Szczecin Odra Park will be the largest mixed-use complex in the city, and will offer a total of over 42 thousand sq m of space. Apart from the high-class office space, it will include a three-star hotel with 144 rooms and more than 4 thousand sq m of retail and service area.

Katowice

The center of Katowice has recently been going through a real metamorphosis. One of the most significant investments is office and hotel complex emerging by Wojewódzka Street. The investor of Centrum Wojewódzka 10 is Wojewódzka Office company, which belongs to Grupa Kapitałowa KG Group company from Cracow. The facility will offer office space situated on the ground floor and another four floors, and will be ready later this year. Apart from that, a three star hotel building with 124 rooms is also under construction. Built on the former parking lot behind the movie theater Rialto, Q Hotel is expected to open in the spring of 2017.

Lublin

The owner of Lublin Galeria Olimp mall is also planning to build a mixed-use investment. An office building and a hotel are to be built in close proximity to the modernized mall. Next year, Transhurt company plans to demolish the existing headquarters, an office building by al. Spółdzielczości Pracy Street and build a three-star hotel with 50 rooms and a new office building. The entire complex will be ready by 2019.

Poznań

The old railway station in Poznań is to be reconstructed by 2019. The development of Poznań Główny railway station is the last stage of the project started at the station in 2011. The project involves the construction of an office complex and a hotel with a complementary retail and service function. According to the representatives of Xcity Investment company, on the lower level of the old station, the passenger functions will be restored , together with the historic façade of the station building. Poznań Główny III project is expected to provide 46 thousand sq m of commercial GLA and its estimated value is 96 million euro. The investment is to be carried out by a Hungarian developer - TriGranit company, which has built the new Poznań Główny railway station and Poznań City Center shopping center.

One of the five 12-storey Alpha office towers is also to change its function. The buildings which are symbolic for Poznań and used to shine in the People's Republic of Poland (PRL) era, now require a thorough modernization. The building located by Ratajczaka Street will be the one to undergo it. The office building was purchased by Altus Hotel Mięczkowski company, which intends to begin its reconstruction in September. After one year the company will open a three-star hotel with 110 rooms under its own brand with conference rooms and a restaurant.

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Will the mixed-use projects dominate the market

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