Genesis Property has made a mark in Romania’s office market with its premium projects, reflecting a 5-star standard. Why did you choose this approach for Romania?

Liviu Tudor, the company’s owner, prioritizes quality and high standards, setting the tone for our business ethos. Our exclusive client base comprises top multinational companies (Siemens, Ericsson, Hewlett Packard, etc.), seeking large, sophisticated office spaces and demanding impeccable standards. Ensuring these high expectations are met secures long-term leasing contracts, some renewed multiple times, crucial in today’s competitive office market.

Beyond the IT sector, what other industries drive demand for office spaces in Romania?

While diverse, prominent tenants from the banking sector also occupy our spaces. Yet, the IT and BPO sectors primarily propel demand.

How has the global pandemic affected Genesis Property’s operations?

Most contracts span medium to long terms, typically five to ten years, shielding us from immediate impacts. Although remote work became prevalent, contracts remain intact. The challenge lies in contract renewals, slated from 2023-2024, banking on a return to normalcy by then. The multinational companies we serve, particularly in the IT field, have experienced growth and possess resources to meet their obligations.

Have tenants sought renegotiations amid the pandemic?

Exploratory discussions occurred, acknowledging market cycles and economic fluctuations. Discussions focused on balancing interests, considering that long-term contracts provided competitive rents.

How do you foresee the future of office spaces amidst the trend of remote work and the pandemic’s impact?

The pandemic accelerated remote work but reinforced a hybrid model. Tenants recognize offices’ fundamental role in fostering relationships and organizational culture. Real estate expenses, around 5-6% of a company’s cost structure, don’t significantly drive savings. The long-term trend favors offices for team cohesion and service delivery.

You’ve pioneered the IMMUNE Building Standard. How did this innovative idea come about?

Liviu Tudor initiated this project in response to companies’ reluctance to resume office operations post-pandemic. While many buildings met energy efficiency and sustainability standards, health-related aspects were underrepresented.

Can you summarize the key aspects of the IMMUNE Building Standard and its benefits?

The standard comprises 120 measures evaluated across three performance levels: strong, resilient, or powerful. It covers air quality, facility management, and introduces an “IMMUNE Steward” overseeing compliance. Its core benefit lies in inspiring trust by ensuring safety and employees’ well-being.

Might this standard create a false sense of security for employees?

Rules like distancing and mask-wearing require employee adherence for the standard to be effective. Multinational companies have been diligent in following such rules.

How do your Bucharest office buildings comply with these standards?

We’re currently implementing the standard in the H3 Building at West Gate, aiming for the highest certification by January 2021.

Is the process of implementing this standard complex or expensive?

Costs, around 2% of a building’s value, vary based on existing infrastructure. While not prohibitive, it’s an investment in people’s health.

What are Genesis Property’s priorities in the next 2-3 years given the current circumstances?

Adapting to future office trends remains our chief challenge. Anticipating changes and positioning ourselves for the next cycle, while continuing to prioritize top-notch services and experiences for our tenants and employees, remains our focal point.

You may also be interested in...