Maciej Kądziołka Opinion about: Offices for sale or to let?

It has been 11 months since Real Office, the first office building in Łódź offering offices for sale, was opened. read full article >

Investing in office building has so far primarily meant providing the total area for lease. The investor or an administrator chosen by him dealt with building administration and took most decisions in important matters. The interests of the tenants were taken into account in the contract with the owner of an office building.

However, it happens more and more often recently that a part of premises in an office building is designed for lease and a part for sale. This is an interesting way to flexibly react to the currecnt situation in the real estate market. The customers of the building's owner include then not only companies which want to purchase the premises for themselves, but also ones interested in investing in it for further lease. We have to remember that their interests do not have to be consistent, which may raise a number of problems in the administration of the office building.

The principles of building management depend on the number of separate units. If there are less then seven units, these principles are specified in the Civil Code. Affairs within the orindary management will then  require the consent of the majority owners, calculated according to their respective shares in the common property. majority owners, calculated according to their respective shares in the common property. For actions exceeding the ordinary management,  the consent of all owners or a decision of the court will be required.

In case of separation of at least seven units, the management principles are regulated by the act of ownership of premises. It states that the owners of premises may agrre as to how their property will be managed (for example, they may entrust the management to some of the owners or to a third party). However, the most importan decisions are always made by resolutions, adopted by the majority of votes, accoridng to the share in the property. In certain cases we can assume the rule: one owner - one vote. But the owner who is not satisfied with the content of the adopted resolution can always appeal agianst it in the court.

The rules of property management can be a source of potential misunderstandings between owners with conflicting interests. The knowledge of these rules can be an advantage when pushing forward certain ideas, which normall entail the obligation to bear the costs by all owners.

Not only should the original owner of an office building remember about it when choosing the way of commercialization (by selling premises he has a chance to ensure certain rights for himself) , but it also should be kept in mind when managing the property. Aslo the purchasors of the premises should take it into account.

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