SBA Urban continues the expansion of Urban HUB in Kaunas: a cost-saving opportunity for businesses
The Urban HUB project in Kaunas is entering its second phase, with the design of an additional 16,000 sqm of modern spaces that will be adapted to the needs of various businesses. According to market experts, this is a good time for companies to review their business premises needs, as the current situation in the rental market is conducive to rational decisions.
“At the moment, supply exceeds demand, which opens up room for negotiation for businesses – both for those looking for premises now, and those planning changes over the next couple of years”, – says Rokas Adžgauskas, Manager of Rental Projects of the Urban HUB development by SBA Urban:
Early decisions mean sgreater flexibility and lower costs
Experts emphasise that one of the main benefits of strategic planning is adapting premises to specific operational needs in advance. It includes zoning the premises for office, warehouse or exhibition functions, and well-thought-out solutions for engineering capacity, ventilation, cooling and fire safety.
“If the premises are planned during the design or construction stages, there is less need for additional installation work, the move-in date is brought forward and costs are reduced. However, sometimes business decisions must be made quickly so in such cases, the first phase of Urban HUB buildings, which still have several vacant and fully equipped spaces, is an attractive alternative. It allows companies to start operations immediately, without additional installation work”, – says R. Adžgauskas:
Installation costs: what is essential to consider?
When moving into already constructed spaces that have not been tailored to individual needs, companies often face the necessity of adjusting the layout, which may require modifications to engineering systems or fire safety solutions, notes Rokas Adžgauskas. It demands additional investment and can significantly impact the project timeline.
He calculates that such processes take time and require additional investment:
“The basic installation cost for stock offices or retail spaces starts at EUR 100 per sqm, but for non-standard requirements, it can rise to EUR 300 per sqm. In addition, the work may take 1–2 months longer than expected if everything is not planned.”
Another important aspect is the additional administrative process: designing the premises, obtaining permits, and coordinating with technical experts and state institutions. R. Adžgauskas advises that ‘moving into a building that is still in the design phase not only reduces set-up costs, but also helps to avoid unforeseen delays and unnecessary bureaucratic burdens’.
Even if the changes are still a long way off
Real estate decisions are rarely spontaneous – they are driven by company growth, changes in business models or technology integration. Therefore, even if a specific relocation or space optimisation is only planned for several years down the line, experts say it is worth analysing the market now.
“The worst that can happen is that you will get better terms from your current landlord, who has learned of your company’s intentions. However, in many cases, such research opens up new alternatives that help you assess whether your current location meets your business needs”, – R. Adžgauskas explains.
Furthermore, he believes that a proactive approach reduces financial and operational risk. Businesses that know their capabilities depend less on market fluctuations or pressure to make quick decisions under unfavourable conditions.
Urban HUB project in Kaunas is being developed in phases. The first phase has already been completed, and further development is underway. The company plans to develop 70,000 sqm of multifunctional space that will meet the needs of logistics, administrative premises and fast-growing businesses.
