Class “A” Office Buildings in Istanbul

Istanbul's "A" class office market is still an emerging market. A simple comparison can illustrate just how early we are in the process. While the first skyscraper in the U.S. was built in Chicago in 1885, Istanbul's first skyscraper wasn't completed until 1980. The near-century gap between these two milestones highlights that Istanbul is still in the early stages of office development.

What defines an "A" class office building? The criteria are set according to international standards. These buildings are located in prime areas of the market, command the highest rental and sales values, and attract high-quality tenants while offering prestige. They are usually designed by renowned architects, with distinctive architectural features. Additionally, these buildings boast modern technical and mechanical infrastructures, above-average amenities, and top-tier management services. The finest construction materials and craftsmanship are used in their construction.

User preferences drive the design and construction of "A" class office markets, making them a crucial factor in determining a building's success. When analyzing the requirements of international companies, certain components emerge as indispensable for "A" class buildings. Below are the main factors:

-Location: This is always a top priority. Companies begin by selecting the area they want to operate in. There is an undeniable truth that buildings located within the Central Business District (CBD) are always in high demand. However, each area has its own user profile.

-Building Technical Infrastructure: Heating and cooling systems, internet infrastructure, high-speed communication networks, LAN, WAN, fiber optic connections, and electrical/data/voice connections are key components of a building's technical specifications.

- Parking: Parking is a critical consideration for users. An "A" class building must have its own on-site parking, whether enclosed or open.

-Heating/Cooling/Ventilation:** As emphasized in the technical infrastructure section, the quality of heating, cooling, and ventilation systems is a major concern for users. "A" class buildings must provide high air quality and allow users to control the temperature settings themselves.

-Fire Safety Systems:** Fire safety systems include heat and smoke detectors, as well as water or gas-based fire extinguishing systems.

-Building Security and Control Systems: Security standards are of paramount importance for international companies. Features such as 24/7 monitoring, card access systems, detectors, and X-ray scanning devices are essential elements in "A" class buildings.

-Building Management: One of the most critical aspects of an "A" class building is its management by a professional property management company.

When we examine the office buildings in Istanbul, there is significant uncertainty about how many of them meet the aforementioned criteria. Many glass-façade buildings remain vacant for years because they fail to meet user demands. Meanwhile, users, especially international ones, spend months or even years trying to find a building that meets their optimal standards. The gap between supply and demand remains unbridged.

On the other hand, buildings that do meet user needs are quickly leased or sold, representing profitable investments for developers or investors.

It is essential for investors and developers to act with foresight when initiating their projects. First, they must evaluate the project's location and identify the appropriate user profile for that area. Expert opinions and reports should be obtained before commencing the project. Once the project phase begins, a team that can coordinate effectively with consultants and project managers familiar with user needs should be formed. This approach will allow real estate companies like Propin Gayrimenkul, with which I am a partner, to easily meet the needs of those seeking "A" class offices.

Investors and developers must remember throughout every phase of their projects that international users' preferences and demands shape the direction of the development.

Observing the evolution of "A" class buildings in international markets, it is evident that the development process is ongoing. Investors and developers active in Istanbul should construct their buildings at the cutting edge of today’s technological capabilities to accelerate the return on their investments.