New built to suit units for sale and rent will soon rise on Ryternos street in Kaunas Free Economic Zone (FEZ): construction of a complex of five buildings has been started on a site of 0.62 ha. Each of them will house one or two companies that require small storage or production facilities, an exhibition hall and an office.
According to project organiser, the real estate development company REES, the idea of development of such business objects was born taking into account today’s market situation and demand.
“We have been working in real estate for over fifteen years, and recently we have noticed that more and more companies are looking for several hundred square meters of higher-level premises that could hold both an office, trade, and warehousing or production facilities. If the company needs to rent or buy a 200-600 sq m representational, modernly equipped premises, such options are practically non-existent – nearly all developers focus on larger companies and larger areas. Finally, when a business decides to build a smaller building, it becomes challenging to find a small, conveniently located plot of land with fitting infrastructure. Thus, a whole chain of issues arises, which cost not only a lot of time but also money to solve and discover the best options,” said Martynas Židonis, Head of REES. “Therefore, we have decided to offer a rational solution to the market – high-quality representative buildings in a strategically convenient location, with convenient communication, as well as developed and reliably maintained infrastructure. In this respect, Kaunas FEZ was a perfect fit. In addition, this venue offers tax benefits, as well as attraction, with well-known Lithuanian and foreign companies as neighbours” he added.
The company plans to invest EUR 2.5 million in the FEZ Business Park project. Once construction has been launched, concrete negotiations with customers, i.e., tenants or buyers of new premises, will begin.
“Although we have not started disseminating communication about the project, we have already received inquiries from interested businesses,” Židonis noted.
Currently, earthmoving works have been started in the territory of the FEZ Business Park. The construction works will start in the coming weeks: a total of five buildings will be erected, each to offer a place of business for one or two companies; it is expected that 5 to 9 companies will operate in the park. They will be offered 300 or 600 sq m premises. The first companies will move in as soon as this autumn.
When designing the buildings, AG Studija architects paid special attention to the layout of the premises, integration of the buildings into the existing environment and their exterior. One of the important advantages of these buildings is their multifunctionality. The total area of one building is ~ 600 sq m, however the layout of the building allows to divide it into two blocks of ~ 300 sq m. 170-230 sq m are allocated for storage and production, and 60-105 sq m – for office space, trade and exhibition hall. Auxiliary premises for dining, staff changing rooms and sanitary facilities will also be provided.
Taking into account the experience of this project and general market trends, REES is planning further stages of development of business real estate in the territory of Kaunas FEZ in the future.
According to Vytautas Petružis, General Director of Kaunas FEZ, various premises development models are available at Kaunas FEZ: some clients independently build the necessary premises, while others hire real estate developers. The latter model has recently become consistently more in demand in the FEZ territory.
“There is also a rental market: nearly 30 companies are renting various types of premises in the territory of Kaunas FEZ. For example, Eften Capital alone offers a 30 thousand sq m office and storage space housing such companies as Itella, Colicare, and ALG Logistics. The rental option also attracts small- and medium-sized service or component supply companies, such as Voltas IT and Mobile Center based in Kaunas FEZ.” stated Vytautas Petružis. However, until now, most rental investors have been mainly offering large-area premises, focusing on logistics companies, therefore, the new FEZ Business Park will create a new supply niche, flexible enough to meet the needs of businesses looking for smaller premises.