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FROM FOUNDATIONS TO DETAIL - Projects, Ideas and Trends
Miloš Grdinić, Director of Development and Property Management of Delta Real Estate: Delta Iron brings new business concept to Novi Sad, completion of construction by End of the year
Miloš Grdinić (Photo: Delta Real Estate)
Delta Iron, whose construction is nearing completion, will bring almost 46,000 square meters of space to Novi Sad and a concept that transcends the traditional office building, responding to the ever-increasing demands of tenants for flexibility, better working environment and energy efficiency. At the same time, projects in Belgrade confirm the company`s ambition to develop commercial and residential units which respond to changes in the market and set new standards in real estate development.
About the development of the Delta Iron complex, new trends in the commercial real estate market, expectations of tenants and further investment plans of the company, we are talking with Miloš Grdinić, director of property development and management at Delta Real Estate.
Delta Iron is one of the most significant business projects in Novi Sad, worth EUR 85 million. At what stage is its realization and are the works progressing according to the planned dynamics? When are you expecting the completion of construction and the opening of the complex, i.e. the first tenants moving in?
- Delta Iron is one of our most significant development projects, in which we invest 85 million euros. The complex will include almost 46,000 square meters, of which about 40,000 will be intended for rent, which will give Novi Sad a significant new capacity of modern business space.
The works are proceeding according to the planned dynamics and we expect the construction to be completed by the end of 2026, when the complex should be ready for the first tenants to move in.
We are especially encouraged by the interest of the companies who already recognize the potential of this site and concept. WeShare, a regional provider of flexible office solutions and coworking spaces,
has already contracted 2,000 square meters within the Delta Iron complex. This is an important confirmation for us that there is a demand for quality, flexible business space which corresponds to the needs of modern companies, both domestic and international.
Delta Iron is conceived as a space that exceeds the traditional role of an office building (Photo: Delta Real Estate)
Delta Iron is conceived as a business complex that combines office space, catering and other commercial facilities, as well as zones for rest, socializing and business networking. How will this concept work in practice and how will it differ from traditional office buildings?
- We conceived Delta Iron as a space that goes beyond the traditional role of an office building. The idea is to offer companies and their employees not only high-quality office space, but also an environment that encourages cooperation, the exchange of ideas and a better quality of the working day.
The complex will consist of four interconnected buildings, organized around a central green atrium, which represents one of the key gathering and interaction places. The atrium is divided into three functional zones: EDU, intended for workshops, seminars and professional development, HUB, which encourages business meetings and networking, and ZEN, designed as a quieter space for rest during the working day.
On the ground floor of the complex, modernly equipped meeting rooms, with natural lighting and a view of the atrium, will be available, which companies will be able to use for presentations, trainings and business events.
What sets this concept apart from classic office buildings is the possibility that different business activities take place in one place, but also that common spaces become a natural environment for connecting people from different companies. In this way, Delta Iron is not just a place to work, but a business community that creates added value for its tenants.
What specific amenities will the tenants have available? How adaptable will Delta Iron be to different company profiles, from large corporations to small and medium-sized enterprises? What are the possibilities of organizing office space and will tenants be able to adapt the space to their specific needs?
- Flexibility is one of the key principles on which we have developed the concept of Delta Iron. We wanted to create a business space that can respond to the needs of various companies, from large corporations to small and medium-sized enterprises, but also adapt to their further growth and development.
The office space will be distributed in four buildings, with four floors each intended for business, and the tenants will be able to organize the space according to the tailor-made principle. This means that the layout and functionality of the offices will be able to adapt to the size of the company, the structure of teams and the specifics of business processes. Our goal is for companies to get a space that suits their way of working, instead of adapting their business to pre-set solutions.
In addition, we paid great attention to the contents that contribute to the quality of the work day. On the ground floor of the complex, a restaurant, cafeteria, gym, pharmacy, kiosk and other commercial facilities are planned, so that employees can satisfy as many daily needs as possible without leaving the complex.
Tenants will have 24-hour reception and security at their disposal, while a permanent exhibition of works by Novi Sad artists will contribute to the specific identity of the space and its connection with the city.
Delta Iron has been announced as Delta Real Estate Group`s greenest project to date, with geothermal systems and more than 4,700 solar panels, which should provide around 60% of its own electricity. How will this affect operating costs, energy efficiency, and overall tenant occupancy costs?
- From the very beginning, we viewed sustainability not only as an ecological standard, but also as an important factor in the long-term economic efficiency of the project. Our goal is to offer tenants a business space that allows for a more rational use of resources, better control of operational expenses and better working conditions.
Delta Iron is designed with over 4,700 solar panels, which should provide up to 60 percent of the required electricity, while geothermal probes will provide more energy efficient heating and cooling. In addition, smart systems for managing energy and water consumption will contribute to optimizing the daily functioning of the complex.
According to the energy model, the complex was designed to be 54 percent more efficient than the global reference standard, and our goal is to reach LEED Platinum certification, which represents one of the highest international standards of green construction. More than 30 percent of the construction materials are recycled and sustainable materials, and the project was developed with the aim of compliance with the European taxonomy of sustainable activities.
For tenants, it is especially important that the advantages of such solutions are not only reflected in a lower impact on the environment, but also in the potential for reducing energy costs during space use. Today, companies increasingly look at the total cost of office space, and not just the rental price. At the same time, an energy-efficient facility can contribute to achieving their own sustainability goals, which is becoming an increasingly important criterion when making business decisions.
The combination of a good location, quality infrastructure and facilities are the main advantage of the Delta Iron complex (Photo: Delta Real Estate)
What, besides the concept and energy efficiency, will be the key competitive advantage of Delta Iron, location, quality of space, accompanying facilities or lease conditions? How will rents be formed and what would you single out as the main economic advantage for companies that choose this complex?
- I believe that Delta Iron`s greatest competitive advantage is precisely the combination of a good location, quality infrastructure and facilities that facilitate everyday business. Companies today, in addition to the quality of the office space itself, are paying more and more attention to how accessible their business location is to employees, clients, and partners.
Delta Iron is located only three kilometers from the center of Novi Sad, that is, about a five-minute drive, while the E-75 highway is approximately three minutes away. Such a connection is especially important for companies that intensively cooperate with partners from other cities, especially Belgrade.
One of the important advantages is parking, which represents an increasing challenge in Novi Sad. The complex will have 588 parking spaces and 24 charging stations for electric cars, which will make getting to work, as well as organizing meetings with clients and business partners, much simpler.
When it comes to rents, they will be formed in accordance with the characteristics and needs of the specific tenant, including the area, the organization of the space and the agreed lease conditions. However, I believe that when choosing a business space, it is important to look at the wider economic calculation, and not just the cost per square meter. Good traffic connections, secured parking, quality infrastructure and facilities available within the complex contribute to a more efficient business organization. It is in this combination that we see the long-term value of Delta Iron for companies that choose it.
How do you evaluate the commercial real estate market in Serbia today, especially in Belgrade and Novi Sad? What are the trends in the demand for office space, who are the most common tenants and how much have their expectations changed when it comes to location, space flexibility, energy efficiency, operating costs and additional amenities for employees?
- The commercial real estate market in Serbia is going through certain changes, both in the demand structure and in the tenants` expectations. One of the more noticeable trends is the changing profile of companies looking for modern office space. While the IT sector was among the dominant tenants in previous years, today we notice an increasing interest of companies from the service industry, especially insurance, accounting, logistics, finance and banking sectors.
At the same time, the criteria on the basis of which companies choose business premises are also changing. The location and quality of offices are still very important, but today`s tenants look much more closely at the total costs of using the space, energy efficiency, the possibility of customizing offices and additional facilities that contribute to the quality of the work environment.
The need for flexibility is particularly pronounced. Companies want space that fits their current business organization, but which can follow future changes as well, whether it is the growth of teams, a different work organization or new business needs. Energy efficiency is also an increasingly important factor, especially for international companies and systems operating according to clearly defined sustainability standards.
These changes are visible both in Belgrade and Novi Sad. where the quality of office space increasingly means much more than the office itself. From an investor`s point of view, this means that it is no longer enough to offer a good location and a quality equipped space. You need to understand the way companies operate and develop projects that can meet their needs in the long run. We were guided by this very principle during the development of Delta Iron.
Deltra District will unite two residential towers, an A-class office building and a five-star InterContinental hotel on 100,000 sqm (Photo: Delta Real Estate)
Belgrade is still the largest business market in Serbia, while Novi Sad is developing its offer of modern business premises. How do you see the potential of these two cities, and is there room for further growth in demand outside Belgrade? What needs of companies are not yet sufficiently satisfied by the existing offer?
- Belgrade remains the largest and most developed commercial real estate market in Serbia, with a wide offer of modern office space and the largest concentration of domestic and international companies. However, we believe that there is significant room for the development of this segment outside the capital as well. above all in cities that have a strong economic base, high-quality professional staff and good traffic connections.
Novi Sad definitely belongs to this group. It is a university center, has a developed business community and companies from various industries, which creates good preconditions for further growth in demand for quality business space. We based our decision to invest in Delta Iron precisely on that assessment.
We believe that there is room in the Novi Sad market for an additional offer of business complexes that can meet the requirements of larger domestic and international companies, as well as companies that are growing and planning long-term development. For such companies, it is not only the availability of office space, but also the infrastructure that can support their business processes and future expansion that is important.
We believe that the development of such projects can have wider significance for the local market, because a high-quality business infrastructure does not only respond to existing demand, it can be one of the factors for attracting new companies and investments. And this is where we see the long-term potential of Novi Sad, but also of other regional business centers in Serbia.
In addition to the Delta Iron complex, Delta Real Estate Group is also developing the Delta District and Delta Land projects in Belgrade. At what stage are these projects and what are the company`s future investment plans? Are you considering new commercial and residential real estate projects, expanding your existing portfolio or investing in other market segments in Serbia and the region? What factors will be decisive for choosing the next investments?
- Delta Real Estate has more than two decades of experience in developing real estate for various purposes, and our current investment cycle includes several large projects in the business, residential and hotel segments.
One of the most significant is the Delta District, an investment worth around 450 million euros, which we are realizing in Block 20 in New Belgrade. The complex with an area of more than 100,000 square meters will unite two residential towers with luxury apartments, an A-class office building and a five-star InterContinental hotel. The opening of the hotel is planned by the end of 2026, while in 2027 the owners of residential units are expected to move in gradually.
In parallel, we are developing Delta Land, a new residential and business district in Belgrade, whose investment value exceeds 450 million euros. It is a project that, in addition to residential units, includes various facilities for everyday life, a hectare of green areas and more than 1,000 trees. The first 533 residential units are planned to be moved in at the end of 2028.
When it comes to future investments, we continue to pursue opportunities for portfolio development, both in Serbia and on regional markets. When making investment decisions, we start from the market`s potential, the quality of the location, the needs of future users, and the long-term economic sustainability of the project. For us, it is important that every new investment has a clear market perspective and to bring quality that will be relevant in the years to come.
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