‘Teapot' office block adds to Mokotów commercial glut

Another 19,000 square meters of commercial office space will hit the Warsaw market when the Philip Zepter Planet office building opens in Mokotów this week.

While Zepter International Poland, the project's developer, is banking on the success of the $20 million venture - already 70% leased - other real estate professionals are less optimistic about Zepter's chances of finding additional tenants. "Some people should be fired for such a waste of space (referring to the building's design)," said a source who asked not to be named. "No internationally recognizable company would want to have their offices in a building that looks like a teapot."

Mokotów has been a development target for years, mainly because of its good infrastructure. Since 1997, the district has seen numerous commercial projects pop up including the Mokotów Business Park, the University Business Center, Adgar Business Centre, Curtis Plaza, Platan Park I and II, and the Optimus Center.

"There is big competition in this area," said Chris Grzesik, a partner at U.K.-based King Sturge. "The location is good, but (the developer) will have a chance for success (to rent the remaining space) only if they offer a reasonable price."

Zepter is asking $21 per square meter a month - about $3 too high for the area, Grzesik said. "Everything can be leased provided the price is appropriate," he added. So far tenants in the building (on ulica Domianewska) include Bank Zachodni WBK; Pro Active, a fitness club; Servisco, a courier, Venezia restaurant, and Jard Press, a press distributor. Zepter International Poland will occupy about a third of the building.

The Philip Zepter Planet project, dubbed the "teapot" or "anvil" by real estate agents because of its unusual design, will also have to cope with another drawback - its lack of flexible space. Due to design limitations, the maximum open plan is just 1,100 square meters, according to one property insider. The source criticized the building's architect, saying he "should have paid more attention to functionality and effectiveness of space."

Zinosco, a Cyprus-based architectural firm, together with Polish architects Gader, designed the Philip Zepter Planet building in the shape of the letter "Z." "This was meant as a tribute to the founder of Zepter," said Agnieszka Walczak-Chojecka, marketing director of Zepter International Poland. "It's very unusual to have such an awkward shape for an office building," Grzesik said, adding that he thought the design was "interesting."

The Philip Zepter Planet project has seven elevators and parking for 150 cars - enough to classify it as a modern office building (air conditioning, water sprinklers, IT infrastructure). If not for its location south of downtown, Zepter would qualify as class-A space.

Kielce-based Mitex was the general contractor while Golub Polska, a subsidiary of Golub Europe, will be the building's property manager.

Announcements

U.S.-based real estate consultancy CB Richard Ellis has been appointed joint exclusive agent to market two projects outside Warsaw. Property agency Błaszczyk and CB Richard Ellis will act on behalf of Warsaw-based developer Globe Trade Centre (GTC) to lease Poznań's Globis Office Center. The building, at the intersection of ulica Roosvelta and ulica Słowackiego, has 12,000 square meters of office space and 570 square meters of retail space. Construction is slated to begin later this year and finish next fall. GTC has also hired CB Richard Ellis and U.K.-based Knight Frank Nieruchomości to lease the 10-story Korona I Office Center on ulica Armii Krajowej in Kraków. The building has 10,000 square meters of office space, 500 square meters of retail and parking for 150 cars. Construction is scheduled to begin early next year and finish by the end of 2002.

Epstein, a U.S.-based architectural, engineering and construction management company, last month signed a lease for 990 square meters of office space in the Nordic Park building. The development, on ulica Kruczkowskiego in downtown Warsaw, was finished last year and has 8,300 square meters of office space, 1,000 square meters of retail space, and underground parking for 220 cars. Anglo-American Jones Lang LaSalle represented the landlord, Eiendom Warszawa II, in the deal. Epstein joins tenants Gerling and Mitteleuropaische Handelsbank. The building is about 75% let, with asking rent of $21 per square meter plus a $5 monthly service charge.

The first lease deal in Atrium Centrum was signed last month with Rabobank of the Netherlands. The bank took 830 square meters in the 16,000 square-meter project, developed by Sweden-based Skanska. International property consultancy DTZ Zadelhoff Tie Leung acted on behalf on the investor.

Ania Staniszewska