Turbulence in the operating environment has posed different challenges for different segments of the property sector. How has Vasakronan, the country’s largest commercial property owner, been affected?
“Everyone is affected by the recession and uncertain outlooks, and that includes us. Financing costs increased during the year and the transaction market remained cautious, but the fact is that demand for office space was surprisingly stable, despite the weakening of the labour market in the autumn.
“This is reflected in the occupancy rates in our four locations, which are relatively unchanged, although I have noted a polarisation in the lettings market. Prime locations and products benefit from new ways of working at companies, which is also reflected in their willingness to pay.
“This is clearly a sign that the market has become more discerning. The perception of the office and the workplace has simply changed after the pandemic and the demand for flexibility and better locations has increased.”
How has the perception of the office changed? Has a “new normal” been established?
“No, the ‘new normal’ is far from clear. Many companies and government agencies are still figuring out how to create the optimal workplace for their organisations and employees. The rising prevalence of hybrid work makes it more difficult for companies to define what they need in their premises and many customers need guidance with designing the best possible workplaces. It is important to remember that there is no one-size-fits-all solution. Everything depends on the type of business, culture and leadership of the companies. Here we play an important advisory role.
“Of course, customers still require an efficient and good workplace that offers the basics: a good indoor climate, sound and light conditions. But it has also become more important that we as property owners can offer complementary services and shared resources, for example in the form of Arena, our co-working offering.
“For most organisations today, offices are very much about attracting people, especially to retain and recruit new talent. Here, location plays an important role.”