He explained why it is not enough to simply provide an office building with an internet connection, highlighted the demands of modern clients, and emphasized the importance of a secure, healthy, and safe environment.
The move-in of the first tenants at Brankov Business Center was announced for September. How did the process go, and were expectations met? Why should interested businesses consider developing their operations here?
– Brankov Business Center was officially opened in September, and the first tenants have started moving into their new offices. With an occupancy rate of over 80% in signed contracts on the opening day, Brankov Business Center demonstrates why it is one of the most anticipated projects in the city center.
This modern business facility dominates its microlocation, bringing a contemporary and fresh look to the site where the spirit of business was once established in the former Beobanka building.
Today, Brankov Business Center is a state-of-the-art office building featuring a uniquely sophisticated lobby design, a floor-to-ceiling glass façade, and a dual orientation that maximizes natural daylight. In addition to benefiting its occupants, this design also contributes to energy savings.
The building meets all the technical standards of modern business while also providing added value through features such as a stunning green terrace on the sixth floor. This space serves as a place for relaxation, a break from work, or informal meetings, offering an incredible panoramic view of our capital city.
The building’s location is also unique, positioned at the intersection of many city transport lines, right in the heart of the city. It is just minutes away from the river, parks, restaurants, cafés, hotels, and most official state and city institutions.
Considering all these advantages, it is clear why Brankov Business Center is the ideal place for businesses seeking the best environment for growth and a strong reputation.
Navigator Business Complex (Photo: Relja Ivanić)
MPC develops modern Class A commercial properties. How would you assess this market in Belgrade? How competitive is it compared to the region?
– That’s correct—MPC is recognized in the market as a developer that makes no compromises when it comes to the quality of its properties. All our commercial buildings are distinguished by their unique locations, innovative design, state-of-the-art technological solutions for building operations, and the highest quality materials used in both construction and finishing works.
In addition, all our commercial properties offer added value through a rich selection of amenities, including diverse gastronomic options, banks, cafés, fitness centers, kindergartens, and even an entire shopping mall in the case of the Ušće complex.
I emphasize this as an introduction to your second question because today—unlike in the past—all these factors are extremely important, and in some cases even decisive, when global tenants choose their future locations in our market.
Following the crisis caused by the pandemic, the rapid shift to hybrid work, and the increasing need to attract a certain percentage of employees back to the office, companies are now fully focused on selecting the highest-quality office spaces with the most additional amenities in the best possible locations.
This shift has led to a price differentiation between such premium properties and standard office buildings. As a result, there is now a difference of several euros per square meter in rental rates for properties in the Central Business District (CBD), which was not the case just a few years ago.
When it comes to office buildings, all European and global reports indicate that the safest investment—both in construction and in investment purchases—is in core properties: Class A buildings in central business districts. These properties have the lowest vacancy rates, the highest demand, and historically record the highest rental price growth.
When it comes to the region, unfortunately, we are still lagging behind in many aspects—whether in terms of the total office space available, the presence of a larger number of global R&D and similar centers, or the volume of investment transactions in commercial properties.
However, in recent years, there has been a positive trend. A notable example is the lease of our Ušće Tower Two office building for Microsoft’s R&D center, along with several other significant transactions. Additionally, we have seen major investment transactions in the sale of individual office buildings as well as an entire office portfolio exceeding 100,000 m².
These are very promising indicators, and I personally believe in the continued growth of the market in this direction.
What Client Demands Influence the Development of Commercial Real Estate? What Needs to Be Offered? How Important Is Location?
– Today, more than ever, it is essential to carefully plan investments and the development of commercial properties, as tenant habits and needs have changed drastically. Average offerings are no longer sufficient—tenants must be provided with innovation, added value, and a sustainable project aspect.
Modern business centers are no longer just office spaces; they have evolved into multifunctional hubs that include shopping areas, hair salons, banks, restaurants, fitness centers, parks, relaxation zones, and various other services and activities.
As a leader and pioneer in the development of commercial real estate, MPC has long been investing in additional content across its entire business portfolio. Perhaps the biggest differentiator we bring to the market is our community program, which connects our tenants through various events sponsored by our company.
Our tenants have had the opportunity to enjoy events such as the F1 Red Bull event, the Serbia Open tennis tournament, UŠĆE Eco Fest, the French Film Festival, the Back to Work party, and Ice Cream Breaks at our business complexes. Additionally, we organize various workshops in collaboration with cultural and other institutions, further enriching the experience of our tenants.
As I have already mentioned, it is not enough to simply provide an office building with an internet connection; it is essential to create a community around it, focusing on the tenant and their needs.
Ušće (Foto: Relja Ivanić)
Two years ago, several of your company’s commercial and retail properties received the WELL Health-Safety certification for the first time in Serbia. Is a safe, healthy, and secure environment becoming a standard in commercial real estate, and can it be a decisive factor in clients’ decisions?
– In short: absolutely yes. Safety and health are now top priorities in our sector. I must emphasize that the market has become significantly more educated in this regard, and today, certification is a mandatory aspect when planning the construction of commercial buildings.
Our properties were the first on the market to implement global standards, and our office portfolio includes buildings that are LEED and BREEAM certified, in line with the standards present in all developed markets. During the operational phase of a project, well-being concepts play a crucial role, best reflected through the WELL Health-Safety standard, which we were the first to implement in Serbia.
Green building and ESG principles have become essential not only for planning but also for financing commercial projects. Tenants have also become more demanding and, in most cases, do not even consider properties that are not standardized in this regard.
MPC’s portfolio is fully aligned with its ESG strategy, incorporating solar panels, composting machines, beehives, urban gardens, and vegetable patches, along with electric chargers to support alternative transportation methods. MPC’s green initiatives and projects continue to grow and expand across our entire portfolio.