Uniqa has been renovating the building with a lettable area of 7,600 square meters and started attracting new tenants, changing the business model towards renting less space to more tenants. The minimum space that can be rented is 250 square meters (half a floor). Renting to more tenants instead of renting the entire building to a single company usually means higher rent per square meter.
“We bought Floreasca Tower in 2005 because it had been built by Strabag,” said Heinrich Reuss, head of asset management of Uniqa Real Estate.
At that time, Oracle was already a tenant and it stayed until March this year when it moved across the street. The company therefore tried to a find a solution for the building, and started renovating it to rent it to other tenants. This is a good time on the market, many tenants are looking for large spaces and there is also demand for smaller spaces, such as those the repositioned Floreasca Tower offers, Reuss added.
Floreasca Tower has five leases signed with tenants: City Grill and Raiffeisen Evolution, which have been in the building for a number of years and new arrivals Fata, Gorenje and Romenergo. The five tenants are using 2,400 square meters and Uniqa is in talks over renting another 1,500 square meters, which would take the occupancy rate to 50%, the Uniqa Real Estate official said.
The company hopes to have the building fully rented by mid next year.
(English version by Loredana Fratila-Cristescu)