Interview with Dan Lupu, CEO First Advertising Agency International

Your company's core business is the advertising activity. How did you make the decision to invest in the Bucharest real estate market and why did you choose this market segment, the office segment. What was the context of that decision?

The decision to develop the building was made in 2007 in the context of the year-to-year growth of 30% and considering our desire to have a representative building for the type of our activity, advertising.
Having a plot of land in a representative area of Bucharest, in constant development, First Advertising wanted to build a competitive, modern office building with A class facilities.
First Advertising Company has developed the office building considering several criteria: high quality standards, optimization of spaces and obtaining a green-eco-friendly building, criteria that we maintain in our everyday activity. Proximity to public transport, but also to traffic area, shops, food, restaurants, cafes, are just some of the attractions for the office building, essential for the business environment.

What were the criteria for choosing the location? What are the ingredients of the success of you office project?

Alba-Iulia Square – Piata Muncii area is well-known for expansion, the reputation of this area has been, at least to some extent, an indicator of economic security and the option for this area. In a city like Bucharest, it is very important for the workplace to be close to daily points of interest, but also to other places such as shops, restaurants, malls, pharmacies, but also with easy access to public transport (subway, tram, RATB), and this area has enclosed them all.
The building includes four levels, has all the technical characteristics of an A class building and is designed according to Western standards (the whole building quality: finishes, appearance, personality, sufficient parking spaces). But the biggest advantage of the building is that we are talking about a truly sustainable building with low maintenance costs.

What type of tenants are you addressing? What is, in your opinion, the profile of the ideal tenant?

We target IT companies, companies with experience and ongoing development, with a financial and renting history of minimum five years.
The ideal tenant is the one raising the potential and interest towards the building.

What are your current tenants and in what ranges of activity are they working?

We are glad to have in the building tenants with young, creative teams, in full career. We have IT and digital media companies occupying two floors and Kleemann- Lift another floor.

Your A class office building is a “Boutique Office”. What are the main facilities offered by the building, what makes it an attractive destination for a business?

Indeed, our office building was noted in this area as a "boutique office", becoming a landmark, as it benefits from an avant-garde design, a modern design which gives a particular personality to the building. The interior design has a unitary line, the spaces have recently been upgraded, adopting a fresh style, designed to meet the needs of the type of tenants' business.

Some of the A class features of our business include location on the main street, with subway, bus, tram and trolley bus stations between 1 and 8 minutes away, York ventilation system with minimum 30% fresh air intake and heat recovery, thermal comfort certified in A ++, waterproof basement with Radmix solution (ensures no moisture in the basement), Schuko exterior metallic joinery with low-E glazing in warranty until 2020, access control with cards and alarm codes, independent consumption control on each floor for hot and cold water, security, video surveillance and rapid intervention monitoring, offices with floating floor, CAT6 network and internet network equipment, pre-equipments for telephony and internet solutions, toilets and kitchen with minimum two rows of doors to the public space (reception), recirculation pump for hot water, independent technical room of five square meters for each floor, six square metres open balcony for each office floor, which adds comfort to the employees.

What are the types of spaces currently available in your building? What is the minimum area for rent?

We have currently available two spaces, in ground floor and first floor. Minimum area for rent is 260 square metres.

From your experience, what are the trends in the office market? Are the rental requests you receive favouring a certain space configuration, such as open space, for example?

Considering the trends in the office buildings market, we think they are heading towards more comfortable, representative spaces, without aiming for the lowest price. In our case, the companies we have within the building were mainly focused on the quality of space and the employees’ wellbeing and chose an open configuration, open space type, with premium facilities both for the employees and for the business meetings.

How do you think the office market will evolve in Bucharest?

We believe it will balance from the point of view of the office agglomerations in other zones apart from the northern one.

You plan other investments in real estate projects, on short or medium term?

We are analyzing other projects too, without having decided yet in this respect.