The office market in Poland is increasingly entering a phase of modernisation of existing properties. According to the report ‘The Last Chance for Ageing Properties’ published by Colliers, in Warsaw alone 64 per cent of office space is located in buildings over 10 years old, and 28 per cent in properties older than 21 years. At the same time, companies are increasingly expecting rented offices to offer not only a good location, but also high energy efficiency, low operating costs and alignment with sustainable development goals. For many property owners, this is a moment to realise that a building’s competitiveness is increasingly determined not by its age, but by the technologies it employs.
Many office buildings constructed a dozen or so, or over twenty, years ago still look good and do not require a thorough structural refurbishment. The situation is quite different, however, when it comes to technical installations. Heating, ventilation, air-conditioning and building automation systems are developing much faster than architecture itself, which is why they most often become the weakest link in older buildings.
Technological progress is not the only factor shaping these challenges. During the biggest investment boom of the 1990s, the priority was to complete a building as quickly as possible and to keep construction costs down. The developer focused on construction, the main contractor kept a close eye on the project budget, whilst subsequent running costs were borne by the owner or tenants. As a result, many buildings were equipped, at the time of completion, with solutions that met basic requirements but left little scope for further expansion.
– For years, the quality of a building was determined primarily by how much it cost to build. But today, both market realities and tenants’ expectations have changed. Rising energy prices and the decarbonisation strategies implemented by international companies have meant that environmental certificates, energy consumption and a building’s carbon footprint have taken on greater significance. That is why the cost of its day-to-day operation has become equally important – says Tomasz Szolc, Deputy Chairman of the Management Board at SPIE LTEC.
Smart energy management delivers the greatest benefits
Not every modernisation project necessitates a costly refurbishment of the entire building. In many cases, the greatest potential for improving efficiency lies in the technical systems and the way they interact. That is why one of the most important elements of modernisation is the implementation of a Building Management System (BMS), which integrates and monitors the operation of the most important systems. By analysing data from sensors located throughout the building, it can continuously adjust the operation of heating, ventilation, air conditioning and lighting to meet the actual needs of the occupants. This means they do not have to operate continuously at full capacity, but only when necessary, which helps to reduce energy consumption without compromising the comfort of office users.
The potential is particularly significant for cooling systems, which are among the most energy-intensive installations in office buildings. By utilising the building’s thermal inertia, the system can periodically reduce the operation of the air conditioning and then restart it before occupants even notice a change in temperature. In practice, this means shorter operating times for the equipment whilst maintaining the same indoor climate conditions.
Modern automation also allows for the control of instantaneous power consumption. If energy demand begins to approach a level that would trigger additional charges, the system can temporarily restrict the operation of selected units or start them in a different order. Modernisation often involves replacing refrigeration units with more efficient ones, meaning the same cooling effect can be achieved with lower energy consumption.
Not every building is worth modernising
The scope for modernisation depends primarily on the age of the building and the technical solutions used. According to experts, buildings constructed since the start of the 21st century usually have infrastructure that can be adapted to modern standards by expanding automation systems and replacing selected equipment. The scope of the necessary work naturally varies, but modernisation is usually technically feasible.
– The situation is considerably more difficult for many buildings constructed in the 1990s. These often feature equipment that cannot be integrated with modern control systems. There is a lack of suitable controllers, sensors and communication capabilities between the systems, which means that the cost of a comprehensive refurbishment may prove disproportionately high – notes an expert from SPIE LTEC.
Such cases can currently be observed in the Warsaw office market. Some older buildings are being taken out of service, demolished and replaced with new developments, as their modernisation would not be economically viable. This does not, however, mean that a similar scenario awaits the majority of existing office buildings.
Modernisation will become a natural stage in a building’s life cycle
Changing tenant requirements mean that the life cycle of modern office buildings now looks different from what it did two decades ago. Property owners are increasingly having to plan not only for the day-to-day upkeep of a building, but also for the subsequent stages of its technical development. This applies in particular to energy management systems, which are subject to the most rapid changes.
The way in which companies choose their premises is also changing. Increasingly, they are not looking for more space, but for a better-designed and more efficiently managed office. In addition to the prestige of the address, the choice of location is also determined by the quality of building management, operating costs, energy-efficiency measures and staff comfort. In practice, this means that older buildings which do not undergo modernisation will find it increasingly difficult to compete for the most demanding tenants.
At the same time, opportunities to construct new office buildings in prime locations are becoming increasingly limited. This means that the modernisation of existing properties will play an increasingly important role in maintaining their value and market appeal. In many cases, it is precisely this modernisation that will enable older buildings to be adapted to the expectations of future generations of tenants.
– Technical solutions will continue to evolve in the future, which is why the modernisation process will not end with the current generation of office buildings. Just as buildings constructed twenty years ago are being modernised today, similar decisions will be taken regarding buildings currently being completed. The scope of work and the available solutions will change, but the very need to adapt properties to new realities will remain a constant feature of their life cycle – concludes Tomasz Szolc.
