Case Study
We Built It, Spun It to 120 Percent and then Sold It
We were targeting a risky step: we have become the owners and leasers of the serviced offices in the middle of the crisis. One of the world's largest office rental service provider has also noticed our success.
The Challange
One of the biggest success stories of the TCL Group started at the end of 2012 when as a small commercial real estate consulting company in Budapest, we decided to go to the leasing side simultaneously with the office rental and invite tenants into our own office. It was obvious that we form serviced offices, as they are immediately available, fully equipped, over-service offices promised better and faster returns than traditional offices.
For many companies it is simpler, cheaper and more flexible to move in to a serviced office, where the owner does not require a 5-year lease period and does not have to spend on reception, technical infrastructure and professional business furniture.
The Implementation
The plan was followed by a quick implementation: in an excellent location, at the West End Business Center, in June 2013, we built a modern office center and launched the Tower Offices. Our strategy was that the quality of our offices was far superior to that of Budapest at the time, adapted to the London and Vienna trends. With high-quality furnishings, exclusive meeting rooms, our own fitness room, telephone areas and extra services we offered our offices. Our another advantage was that instead of emphasizing the brand of our office center, the customer could feel himself in the center and be more prominent in front of his partners.
The utilization of our offices so soon exceeded 100 per cent that we had to expand within half a year. With this, we have reached a new level and we have opened MOM Park Offices where we have offered an even better location, even higher standards, with a panoramic view of the city and a grassed terrace. MOM Park Offices also had a great success, and at the moment of opening, the occupancy rate was 50 percent. Within one year, both office centers operated at 120 percent utilization.
The Result
Our own service centers have made our commercial real estate consultancy unique, and we were able to provide highly flexible inquiries from our own resources. We provided Provident, from London, 5 offices for one and a half months in a project in Budapest, Hungary. Our serviced offices were leased to major market players such as Sandoz Hungária Kft., Bayer Hungária, Goodman Hungary, and important public organizations such as NISZ National Infocommunication Service Provider or National Strategy Research Institute.
The international success of the idea is demonstrated by the fact that it soon attracted the attention one of the world's largest office rental service provider, and the company bought the project on excellent terms.
1132 Budapest, Váci út 22-24.
info@tclbudapest.com
www.tclbudapest.com
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