Tanya Kosseva-Boshova, Managing Partner, Lion’s Head Romania and Bulgaria, spoke to Property Forum about the leasing environment for offices and new investments made by the developer in the co-working space.
This interview was first published in Property Forum’s annual listing of "The 50 most influential people on Romania’s real estate market”.
You took the helm at Lion’s Head in early 2022. What are your priorities for the office portfolio in Romania and Bulgaria?
Our priority is to keep our tenants and their employees happy at Oregon Park in Bucharest and the buildings in Sofia. We are in constant contact and trust that we address their needs and concerns in a timely manner.
Tanya Kosseva-Boshova
Managing Partner
Lion's Head Romania and Bulgaria
What are some of the opportunities for the office industry now that the pandemic’s impact is becoming limited?
We appreciate more the health and well-being of the occupiers of our buildings as well as health-related building features. Properties that comply with the highest sustainability criteria, green certifications and ESG standards shall excel and be more and more appreciated by tenants and their employees. We have learned how to cooperate with our tenants and help them cater to the needs of their employees to a greater extent than before. We are assisting the management of these companies in attracting their teams back to the office.
What is your outlook on occupancy and leasing activity for Lion’s Head portfolio?
We are fully leased at Oregon Park – our tenants have long term commitments with us and have expressed their satisfaction with the services that we provide. During the pandemic, we invested a significant amount of money in our Bulgarian portfolio and at present we see tenants really happy with what we have done with the common areas of Megapark in Sofia, for example. We have extended the leases with our key tenants there and aim to lease the last vacant areas in Sofia by the end of the year.
How does Lion’s Head implement actions related to the sustainability of buildings?
Our buildings are LEED and BREEAM certified and comply with all sustainability criteria. During the pandemic, we invested in the BMS and HVAC systems in the older buildings in Sofia with the aim to increase their energy performance and efficiency and to improve tenants’ satisfaction.
Are you looking to acquire or develop new projects on the Bulgarian and Romanian markets?
Yes, we are actively looking to enlarge our portfolio in both countries.
Flexible workspaces emerged before the pandemic but are named as one of the driving forces of the future office. What is your take on this trend?
We invested in our own co-working space in Sofia – MyFlex. We opened it in May this year and we are almost fully booked. We are already planning to open the second stage of that platform this year.
Have employees resumed work in your office buildings and what has been the feedback you got from your tenants?
More and more people start to come to their offices. It is amazing to see them sitting in the sun in the green areas between the buildings at Oregon Park. They love it! The good news is that the global companies allow and even encourage their employees to come back to the offices.
What is your outlook on office rents considering the sharp increase of energy prices and the inflation pressure?
We are actively working on fine-tuning the HVAC equipment in our buildings to make sure we utilise them in the most efficient way, save energy and decrease energy costs for our tenants. As a result, our service charge fee is one of the lowest on the market. As for the rental levels – they are determined by the supply and demand. Most developers are hesitant now to commence new projects due to the uncertainties of the war in Ukraine, high inflation, high energy costs… That would eventually lead to a shortage of quality office space and hence higher rental levels.
