While the latter stage of 2024 saw some media commentators increasingly talk about the so-called “Return to Office” or “Return to Work,” the reality of how and where teams operate is far more nuanced than these headlines imply.

The reality for many companies and their people across the world is that hybrid working continues to empower millions of employees to work how and where they want, and most CEOs of white-collar businesses believe in its benefits long term, according to International Workplace Group, the provider of flexible workspace including brands such as Regus and Spaces.

The firm believes this year will see organizations increasingly shift their focus towards enhancing the productivity and happiness of their people rather than focusing on where they work from.

The hybrid working model will gain traction for another significant reason: more businesses will re-size their traditional real estate footprint as longer-term leases continue to expire, ensuring hybrid working becomes a strategic business choice, minimizing overheads while providing a range of benefits to workers.

Research has consistently shown that hybrid working leads not only to greater employee satisfaction but also greater productivity, IWG says. Companies that embrace the hybrid model and empower their employees to work when and where they prefer will fare much better than those that do not.

IWG’s founder and CEO, Mark Dixon, highlights that productivity hinges on good management and clear key performance indicators, not location. As the surge of small businesses continues post-pandemic, he believes the demand for scalable, flexible workspaces will rise even further in 2025.

“Hybrid working not only makes us happier, healthier and more productive, but also better off, and that is something that everyone will be thinking of moving into 2025,” Dixon insists.

Indotek Sells Bokserska Office Center in Warsaw

The Budapest-based investor Indotek Group has sold its 6,600 sqm Bokserska Office Center in Warsaw. The buyer is Enter Air, Poland’s leading charter airline, which intends to relocate its headquarters to the property. The complex in the Mokotów district was developed by Ghelamco Poland in 2001.

“This transaction underscores Indotek Group’s strategic approach to aligning our portfolio with market dynamics,” says Philip Wood, international expansion director at Indotek Group.

“The deal highlights Indotek’s adaptability and value-driven strategy. It demonstrates foresight in securing a buyer committed to repurposing the property for long-term operational success,” he explains.

“The deal also aligns with Indotek’s strategy to actively manage its portfolio across CEE. The group remains committed to Poland, focusing on revitalizing underperforming assets and investing in high-potential ones,” Wood adds.

Indotek received legal advice from the Warsaw team of Greenberg Traurig in the transaction.

Sustainability Shapes CEE Office Markets

Sustainability, growth, and opportunities are shaping office markets in CEE, says Colliers. Cities with high green certification rates for modern offices attract premium rents, indicating strong demand for sustainable spaces, according to the agency’s report “CEE Office Markets on the Green Path: Decarbonization Potential,” which examines office markets across 11 CEE capital cities.

“Markets with a high share of older stock, such as Prague, Bratislava, and Budapest, face challenges in achieving energy efficiency. Significant retrofitting investments are required to meet modern sustainability standards. Conversely, cities like Warsaw and Vilnius, with a higher proportion of newer buildings, already align with advanced energy performance benchmarks,” the study finds.

Olga Drela, business analyst at Market Insights Colliers, says mature markets like Warsaw (6.2 million sqm), Budapest (4.4 million sqm), and Prague (3.9 million sqm) offer scale and liquidity, making them attractive to institutional investors. High green certification rates in Warsaw (98%) and Bucharest (93%) further strengthen their competitiveness.

Modern office spaces (that is, less than seven years old) enjoy higher occupancy and rental rates compared to older buildings.

For example, in Warsaw, vacancy rates are 5% for newer buildings versus 15% for older stock. Tenants prioritize operational cost savings, sustainability, and modern amenities. Warsaw and Bucharest lead with the highest green certification rates, enhancing their competitiveness and attracting investment.

Wing, Alteo Conclude Energy Supply Agreement

Developer Wing and Alteo Energiaszolgáltató Nyrt., the energy trading company of Alteo Group (a Hungarian-owned energy service and trading company listed on the Budapest Stock Exchange), have entered into a strategic cooperation agreement.

Under the deal, Alteo will supply 100% of the industrial properties managed by Wing Industrial with electricity from clean and renewable energy sources this year and next.

The cooperation takes the partnership between the two companies and Wing’s green commitment to a whole new level, according to the developer.

Alteo will, therefore, continue to support Wing in 2025 as a trader in the procurement of green electricity for the Airport City Business Park, East Gate Business Park, East Gate PRO Business Park and Login Business Park industrial parks in addition to the Liget Center and Liberty office buildings and the Ibis and Tribe Budapest Airport Hotels.

As part of the strategic partnership, Alteo will cover the energy needs of the entire portfolio of Wing Industrial, the business division responsible for industrial and logistics developments, with energy from a solar park managed by Alteo.

Furthermore, in 2025, 50% of the total electricity purchased by the entire Wing group will come from clean and renewable energy sources, marking a significant step forward in sustainability.

ESG criteria and sustainability are always priorities in Wing’s developments, the company says. One of the group’s long-term goals is to measure the energy consumption of buildings with up-to-date data recording and analysis.

Furthermore, it aims to modernize facilities that waste gas and electricity and progressively develop efficient buildings that rely on green electricity for their energy consumption, focusing on present-day requirements and tenant’s needs.

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