Meeting challenges head-on

WBJ sat down with Monika Szelenberger, Head of Leasing & Asset Management and Robert Włoszek, Operational Director at Adgar, to talk about the post-covid office market, changes on the horizon and how it impacts the company’s strategy. Interview by Beata Socha

WBJ: Adgar Poland is celebrating its 25th anniversary in the Polish market this year. What were the company’s beginnings, and how has Warsaw changed from a developer and office Property Manager’s perspective over this quarter-century?

Monika Szelenberger: When Adgar first entered the Polish market in 1999, the landscape was vastly different from what we see today. Warsaw, back then, was a city in transition, with rapid development that outpaced other cities in Poland.

The demand for office space was high, and the market was only beginning to see an increase in supply. By the late 1990s, vacancy rates were as low as 1-2%, which speaks volumes about the boom in investment and development that followed.

Robert Włoszek: Our journey started with just one building, Adgar Plaza One located in Mokotów, Warsaw’s key business district. We were a small team of no more than ten people at that time, navigating a market that was still finding its footing.

Fast forward 25 years, and we’ve grown to a team of over 100, managing a portfolio that reflects not just the growth of our company, but the evolution of Warsaw itself. Initially, we outsourced most of our services, but now we’ve developed in-house teams for leasing, project management, and technical maintenance.

Monika Szelenberger: Warsaw has transformed in parallel with the broader systemic transformation in Poland, with significant milestones such as the 2009 financial crisis and, more recently, the pandemic. Each of these events has reshaped the office space market, but our strategy has always been to evolve.

Would you agree that a return to pre-pandemic office work is unlikely?

Monika Szelenberger: The pandemic altered the landscape of office work. We’ve seen two competing tendencies emerge. Employers want to see employees back in the office, but employees prefer the flexibility of hybrid work. Convincing people to return to the office full-time is challenging. However, even though many companies have decreased their space requirements in connection with hybrid work, their demand remains at as much as 70-80% of pre-pandemic levels.

Robert Włoszek: We are witnessing higher employee turnover, where companies are struggling to maintain employee engagement and identification with the company culture. The future work model is uncertain. However, what we do know is that the office must offer something that remote work cannot—whether it’s superior ergonomics, optimal lighting, or simply a more comfortable and professional environment.

What changes are they opting for? Are offices still being leased for long-term periods, or are we moving towards short-term solutions?

Monika Szelenberger: The pandemic accelerated the adoption of flexible solutions in office leasing. We responded and even anticipated some of today’s trends. For instance, our first Brain Embassy, a coworking space, was launched in 2016. During the pandemic, the concept evolved, as companies were reluctant to commit to long-term leases, given the uncertainty around workspace requirements and office layouts.

Robert Włoszek: Adgar has always listened to our clients, which is why we were among the first to recognize and cater to the needs of smaller companies, often just a few people, by developing concepts like Brain Embassy and later Flexi Lease for bigger teams. We continually adapt to market trends by focusing on buildings as well as enhancing tenant experiences.

We also invest in the areas surrounding our properties to enhance their usability and comfort. A great example is the investment of approximately PLN 15 million to connect and modernize the Suwak and Cybernetyki Street, which we initiated and co-finance. By improving city infrastructure and transforming the Służewiec area, in collaboration with our partners and the City of Warsaw, we are alleviating traffic issues and reducing commute times for thousands of residents. This addresses a key factor that many had cited as a reason for opting for remote work.

What makes the Flexi Lease concept unique? How does it differ from the serviced office model that existed before the remote work revolution?

Monika Szelenberger: Flexi Lease is a hybrid between traditional office leases and serviced offices, where tenants don’t have to worry about cleaning or maintenance or other daily services in the office. The offices are modular and independent, with access control and some customization in terms of furniture and layout.

These leases can be 12 months or open-ended, with tenants often renewing them before transitioning to traditional long-term agreements for larger spaces.

Robert Włoszek: This concept is ideal for larger teams of 20-60 people, offering more space than typical serviced offices. It blends short-term lease flexibility with the quality and independence of traditional office space.

From a functional and design perspective, what are tenants looking for now, and what kind of offices are they seeking for their employees?

Monika Szelenberger: Tenants now prefer minimalist designs and collaborative spaces, moving away from traditional, hierarchical office setups like the CEO’s large private office. At Adgar, we focus on building community for tenants with events, workshops, and informal gatherings, including creative touches like a smoothie bike for a fun, interactive workspace experience.

Robert Włoszek: Trends in office design are closely aligned with organizational culture, emphasizing a flatter structure with modern acoustic solutions, optimized lighting, and kitchen areas that serve as social hubs.

How do you envision the future of Adgar Poland’s Warsaw offices in the next 25 years?

Robert Włoszek: Looking ahead 25 years is challenging, especially considering how unpredictable the past few years have been with the pandemic and the proximity of geopolitical conflicts. The availability of attractive locations is decreasing, which makes modernization and repurposing buildings more attractive, especially those that have become part of the city fabric. We have very positive experience with that. We have managed to create new office functions in historic buildings such as PDT Wola and the Kwadrat Theater in Warsaw, which are great examples of untapped potential that can bring real value to the city and its residents.

Monika Szelenberger: Our long-term strategy and values will remain the same, focusing on long-term investments and client satisfaction. None of our buildings have been sold, and we intend to continue offering stability and continuity to our tenants, always adapting to their needs and the market’s demands.

Robert Włoszek: We’re preparing for the future with ESG, which will impact our business, but as a market, we are in the early stages of this journey. Our buildings have been awarded sustainability certifications like LEED. We’re also anticipating changes in work culture, possibly moving towards shorter work weeks, which will further influence how office spaces are used. The future of work may involve even more flexibility, with a blend of coworking and traditional office environments, and we’re ready to meet those challenges head-on.