Challenges for Office Landlords: How to Retain Tenants in a Changing Market?
The office market is undergoing a significant transformation. Changes in work styles, pressure for sustainability, and technological innovations are placing greater demands on landlords than ever before, according to the latest European Office Update report by Cushman & Wakefield.
Rising Tenant Expectations
Today, companies don’t follow trends — they look for results. When selecting office spaces, they prioritize four specific criteria that deliver measurable ROI:
- Hybrid Work & Collaboration - Spaces must support seamless transitions between remote and in-office work, encourage team interaction, and offer layout flexibility.
- Energy Efficiency & Sustainability- Modern buildings with low consumption and certifications (like LEED/BREEAM) significantly reduce operating costs and enhance corporate image.
- Digital Readiness - Fast internet, cloud services, and smart infrastructure are now considered necessities by tenants, not optional extras.
This means that older buildings without renovation face an increasing risk of long-term vacancy, especially if they cannot compete with the standards of new developments.
Low Construction Activity Increases Pressure to Adapt
Across Europe, including Bratislava, the volume of new construction is declining. For landlords, this represents an opportunity—if they modernize existing spaces in time, they can take advantage of limited supply. According to the report, the vacancy rate in Bratislava is around 13–14%, but there are significant quality differences between buildings.
What Increases Property Attractiveness?
The report shows that tenants prefer buildings with:
- High-quality property management
- Flexible layout options
- Certified ecological profile
- Access to services and public transportation
Shared spaces with meeting rooms, terraces, or relaxation zones are also a major advantage.
Recommendations for Landlords
To stay competitive in the office market, it’s no longer enough to simply offer space. Prospective tenants expect more—from modernized buildings to transparent communication. Based on current trends and tenant feedback, we’ve put together key recommendations that not only reduce the risk of vacancies but also deliver measurable added value:
- Invest in modernization: energy savings, HVAC, elevators, façade
- Respond to tenant feedback: flexibility, lease extensions, space modifications
- Increase marketing activity: showcase standards, locations, certifications
- Use ESG strategies: relevant for both investors and tenants