WBJ: What is the idea behind the structure change?
Rajmund Węgrzynek, managing director of Tétris in Poland and CEE: In business, the maxim “Think globally, act locally” is highly effective. Each of the markets has its own specific dynamics, conditions, and culture. Therefore, we will maintain the development of separate national structures but simultaneously use the group’s potential for support. The possibility of using experienced specialists from each of our branches, whenever necessary, is not to be overestimated within the Hub. Tétris offers full coordination of fit-out works, as well as consulting and architectural services. Our teams of designers and architects create original concepts and propose optimal solutions based on global guidelines of a particular brand.
Paweł Brodzik, managing director of Tétris in Poland, CEE Hub Leader: Creating effective mechanisms in business operations requires in-depth knowledge of a specific market, the utilization of global know-how, and an individual approach. In our industry, the strength lies in the effective management and developing a network of trusted subcontractors. I am glad that I can actively participate in further strengthening the position of Tétris both in Poland and in the entire region.
How your clients could benefit from this change?
Rajmund Węgrzynek: The main advantage of strengthening cooperation within CEE for clients is the consistency and time savings, achieved by allowing for properties of one company in several countries not only to be designed by one team, ensuring uniformity of the project but also to be delivered according to the same standards.
Why do you think Tétris entrusted you, Polish managers with coordination of the CEE Hub?
Paweł Brodzik: Poland is the largest commercial office market in the CEE region with a current office stock of 10 million sqm and an investment market transaction volume of €2.9 billion in H1 2020. JLL’s report indicates that Poland generates 46 percent of CEE’s overall transaction volume. The rapid development of Poland’s market encouraged Tétris in 2015 to commence operations in our country. After only five years, this part of Tétris business has become the second most profitable. In 2019 alone, Tétris completed fit-out works on approx. 200,000 sqm, with a turnover of PLN 290 million. This experience in adjusting to rapidly growing needs gives us an undeniable advantage in building a strong business across Central and Eastern Europe. Therefore, when developing an optimal model for the operations of the entire Hub and each of its units, Tétris, apart from its global practice, will use our Polish experience gained from the implementation of complex projects worth over PLN 1 billion in 2015-2019.
Rajmund Węgrzynek: Today, the key to increasing the scale of business in the fit-out market is the ability to simplify processes and to operate efficiently both in local and international markets. By continuing to grow in CEE, Tétris will not only boost its competitive advantage in the search for global clients but will also look to further expand its services.
It is 2020, so I have to ask if you observe or predict major changes to developers’ and tenants’ preferences or behavior?
Paweł Brodzik: For many companies, the introduction of “home office” to replace the regular office environment, as a means of dealing with the pandemic, is a signal to evaluate and break the stereotype, that “you can only work effectively in the office.” This is undoubtedly true. However, people will always have a need for face-to-face interaction with their colleagues and clients – it’s the nature of business. Indisputably, human interaction is an efficient way to perform daily duties, achieve targets and resolve problems. For this reason alone, an office environment will be required. I cannot answer the question today if it will be based simply on the need to have a comfortable space to meet outside of the home – most likely not. But I know for sure, that we will have to find a solution that makes people’s work effective. This is a challenge for the future. The business will suffer without personal contact, many companies are aware of this and are addressing this issue. We at Tétris already advise our clients to focus on building a more flexible working environment that could be easily adapted to changing needs. Moreover, we introduce the idea of the “Hub & Club” office, where a company’s employees can meet, interact, exchange thoughts and cooperate.
The local dimension of global thinking
Tétris was founded in France in 2003. Since 2007, the company has been part of the JLL group. Tétris provides a comprehensive service in both design and implementation for office, retail and hospitality markets. Thanks to the company’s continued expansion into new markets, Tétris became a partner for representatives of local SMEs and corporations, as well as international concerns.
Today, the company operates in 15 countries from 31 local offices, with over 7,000 completed projects achieving a turnover of $711 in 2018 and sees great potential for growth. In the Czech Republic, Tétris has been operating since 2014. From its office in Prague, the company also manages projects in Slovakia. In Hungary and Romania, Tétris, through the local JLL Project & Development Services, continues to strengthen its structures and increase its identity in the local fit-out markets.It is worth noting that in each of these four countries the real estate market is highly concentrated in their respective capital cities. In Prague alone, modern office space stock increased by 109,000 sqm in Q1-Q3 2020 and now stands at 3.7 million sqm. The office space market in the Hungarian capital is now near 3.9 million sqm (+193 000 sqm in Q1-Q3 2020) and in Bucharest 2.9 million sqm (+124 000 sqm in Q1-Q3 2020) while in Bratislava, it is currently at 1.89 million sqm.