Commercial premises leasing now requires creative solutions – The best agreement is found through joint negotiation

Coronavirus speeded up the amount of remote work. After the exceptional period, there has been a return to office, but the time spent there has decreased.

‘The golden middle way to the best working models is still being sought. When this is added to the challenging economic situation, the market is undeniably demanding,’ describes Portfolio manager Tomas Syrjänen.

A few years ago, the trend was moving towards shared premises and office hotels, but their popularity has somewhat declined. During the pandemic, office premises were significantly reduced, but at the same time, people miss the community of the workplace. Remote work has become established, and companies are seeking office solutions that benefit both the employer and the hybrid-working employees in the best possible way.

‘We listen carefully to the tenants and their needs. We strive together to find creative solutions to challenges and to be flexible as the situation demands. This is a strong framework for any negotiation,’ Syrjänen emphasizes.

An example of a successful leasing process is the industrial and office property Tunturi Center, located in Piispanristi, Kaarina, which previously served as a production and administration building for Tunturi bicycles. The property, built in 1989, is 12.000 square meters in size.

‘Leasing negotiations with the international technology company Stera Technologies Oy began in November 2022. A common tune was quickly found, as well as a mutually beneficial agreement. Currently, small modifications are being made to the property, and the new tenant will move into the premises at the beginning of May,’ says Syrjänen.

Jussi Ohlsson, CEO of Stera, agrees that both parties were solution-oriented and worked together to find ways to reach an agreement. In addition to negotiation skills, he lists three factors for the decision to move.

‘The main reason for the move was the location near the old factory. The availability of skilled labor is of great importance for the premises. The close location made it easy for the old employees to continue working in the new factory as well,’ says Ohlsson.

As a second factor, he names the property’s floor plan, which allows Stera’s production lines to be relatively easily constructed. The third factor is the possibility to sublease space flexibly.

‘The needs for premises can vary significantly, and the agreement allows for the reduction and expansion of production capacity as needed,’ says Ohlsson.

A professional knows the property’s history

The duration of leasing processes can vary greatly, but typically it takes a few months to reach an agreement, unless there is a particular rush for some reason. In exceptional cases, negotiations can stretch up to a year. This is usually due to legal requirements that prolong the process.

Kielo has a diverse range of properties across Finland’s growth centers.

‘We have our own leasing experts who are familiar with the premises and the history of the properties in each city we operate. Feel free to contact our professionals!’ encourages Syrjänen.

Additional information:

Tomas Syrjänen, Portfolio manager
+358 44 3412 112
tomas.syrjä[email protected]