Real Estate Expert: Green Office Boom Maturing in Tallinn
Real Estate Expert: Green Office Boom is Maturing in Tallinn
Although the commercial real estate sector has been moving cautiously over the past year, three green office buildings had their cornerstones laid in Tallinn last month, and this appears to be becoming a new standard, according to Kirill Vigul, head of 1Partner Commercial Real Estate.
According to Kirill Vigul, almost all commercial real estate developers have noticed that energy and environmentally friendly offices are hot commodities. "In June, a cornerstone was laid for a green office building in Ülemiste City, and the other two by real estate developer Hepsor next to Tallinn Zoo and on Pärnu Road," said Vigul, adding that tenant interest in such buildings is significantly higher than average.
"Building green offices is not noticeably more expensive than typical construction, which is why rental prices are on the same level as standard ones. At the same time, energy and environmental savings is one of the trendiest sales arguments," added Vigul.
"The green office trend has been widespread in the Nordic countries for about a decade, and now it is being taken into account in Estonia for almost all new developments. In Estonia, Hepsor was the first to catch on, building its first green office in 2014 and has been building them progressively throughout Tallinn," said Vigul.
"Green offices are clearly preferred by large multinational companies, for which it is important both morally and for meeting corporate standards and certifications. Estonian companies are also increasingly concerned with environmental friendliness and how much they can save on daily operating costs with a green office. Therefore, it is becoming increasingly difficult for old office buildings to compete and retain and attract tenants," added Vigul.
According to the head of 1Partner Commercial Real Estate, the green trend is expanding to other areas of commercial real estate. "Solar parks are already being built on the roofs of new logistics centers, and next the trend will reach the development of production and warehouse facilities," added Vigul.
