For almost a year, our team has worked on a contract for a premium client - the back office of the renowned car brand, Renault. This company has been connected with the International Business Center (IBC), the legendary administrative building in Prague's Karlín, for nearly 27 years.
After almost a quarter of a century, Renault decided to map out the current options on the Prague office market. The management's request was clear - to stay connected with the original location of Prague 8 and respectively Prague 1. Therefore, we shortlisted the selection of potential options to 4 buildings. Three of these were within a 3km radius of the IBC and one was in Pankrác.
International Business Center (photo credit: Mint Investments)
Among other alternatives considered by the client there was also an option to renegotiate the conditions of the existing lease in the IBC building. Hence we received the proposal from the current landlord, the investment real estate company Mint Investments, to prolong the contract for 2,400 sqm that reflects 13% of the total leasable area of the asset. After a long negotiation process the offer finally complied all the required criteria. As a result the landlord already completed the full refurbishment of the common areas of the property including reception, lifts, shared meeting rooms, parking space and will also provide remodelling and renovation of Renault´s offices. Moreover the HVAC system will also undergo a significant upgrade from VAV box to a new 4-pipe coil ventilation.
I am convinced that this is precisely the case which proves that assets of the office buildings of older generation under a resourceful management can compete with new office buildings in an effort to acquire or retain a tenant. It also illustrates the growing role of tenants, who can gain significant benefits in cooperation with consultants.
Lena Popova, Head of Office Agency at BNP Paribas Real Estate for the Czech Republic and Slovakia
The Tenant Representation (T-Rep) service is becoming more and more relevant with regard to the current situation, where companies are aware of the need for greater flexibility.
