Developing highly efficient green buildings in Bucharest – Part 2
During an interview with CIJ, Antoniu Panait, Managing Director at VASTINT Romania, spoke about the changes he sees on the market when it comes to the interest for efficient, green buildings. He said that, although until recently tenants focused on obtaining the lowest possible rent, things are now changing: “Suddenly the tenants realized that they are prepared to pay more to be able to have the best buildings in the city; the ESG-compliant buildings [are] much lower in number in the market, so the prices for those buildings will increase.” He also mentioned that tenants no longer just “tick the box” for environmental issues, but rather start doing proper due diligence from this perspective.
Talking about rent prices, Panait stated that rents had increased by around 6.4% within the last year and went on to specify that Vastint offers one of the best service charges on the market: “We are in [the] top from the perspective of low service charge in the market, because we have open book[s] and we are fighting for each cent for the tenant. […] We have a lot of work behind to keep under control the prices and always […] without affecting the quality.”
Panait mentioned that many new buildings aren’t, in fact, complying with the standards of ESG due diligence imposed by the European Union. He said “ESG is not just a statement. We will be evaluated. They are coming, European Union and say[ing], OK, no greenwashing anymore. […] You have to come with proof. Otherwise, you will be penalized by the European Union or the state.” Vastint Romania’s Managing Director believes building efficient, green buildings is going to become more and more important. “Major tenants or institutional tenants, they will decide not to go in a building if it is not reaching the level of ESG on long run. And if you are a buyer of buildings, you have to think twice now [about] what you are buying. Because in five years you [may] need to refurbish.”
Speaking about efficient buildings, the Managing Director presented one of the company’s ongoing developments and one which has brought him, personally, a lot of pride, the second phase of the Timpuri Noi Square project. This new phase of what Panait calls “a magnificent project” will be a Net-Zero operational carbon building , due to the elimination of gas burners and reliance, instead, on state-of-the-art environmentally-friendly technology: “The buildings will have 1,700 square meters [of solar panels], the maximum possible on the buildings, over 200 [heat pumps], heat exchangers, and with all this package, we get to the point that the buildings […] don’t need to be connected to gas. So, I think this is the evolution.”
Vastint owns all top 5 LEED Platinum buildings in Romania, namely Business Garden Bucharest office buildings A, B and C, and two of the three office buildings comprising Timpuri Noi Square. Business Garden Bucharest office building A holds an LEED score of 98, the third highest worldwide in the Core & Shell category.
When asked by CIJ what they intended to do after having reached the best LEED Platinum certification, Panait said that the standards are continuously changing, and the target set by the certification bodies is higher and higher. “Our mandate is to target the highest certification for the next phase.
The Timpuri Noi project enjoys very high interest from the tenants, with an occupancy rate of almost 100%. “We don’t have enough space. We have three tenants for the same space. Which I think is the dream of any developer.” Panait also mentioned that the new phase of the project is already in very high demand, even years before its completion.
The Managing Director also noted that 65 to 75% of employees are now returned to the office for at least 3 to 4 days per week, which he thinks is healthier both for the businesses, and for the employees themselves. In this context, he noticed a higher and higher tendency to create healthier, more creative environments for the employees, which help people “interact and have good ideas”. Tenants, supported by the building owners, are striving to provide “an office space which will help the tenants, the employers to attract and to retain the best employees.”
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