Simply put: fit-out means bringing the interior to a condition in which it can be used normally – work, live or receive guests. Just as an apartment purchased from a developer is often delivered in a developer's condition, in commercial real estate we talk about the so-called shell & core, i.e. the raw “shell” of the building. Fit-out is the entire process that turns this shell into a real space for living or working.
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– We take an empty space and turn it into a ready-made, functional office, hotel, apartment or commercial premises – explains Paweł Brodzik from Neo-Świat. As he emphasizes, it's not just about aesthetics. It is also installations, acoustics, lighting, ergonomics and technology that make the interior comfortable and effective..
Importantly, fit-out no longer applies only to office buildings. — We also carry out apartment finishingmainly in larger packages – for developers, PRS or aparthotels – adds Rajmund Węgrzynek. The Polish market is just maturing to think about interiors as a finished product, not a semi-finished product requiring further months of work.
Fit-out as a barometer of the commercial real estate market
Although the commercial real estate market is talked about cautiously today, the fit-out industry sees the first signs of recovery. — We have a very solid portfolio of projects and a few really good months ahead of us, says Paweł Brodzik. In his opinion the market is coming back into play, but on completely different terms than a few years ago.
The Ibis hotel in Budapest is an example of a fit-out for the hospitality market
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It became crucial price competitiveness, but understood differently than before. – It's not about competing for the lowest price of materials, but about knowledge, experience and recommending solutions that actually make sense – emphasizes Brodzik. As he adds, fit-out margins have never been a secret, but today investors openly talk about costs and risks.
Rajmund Węgrzynek draws attention to the broader macroeconomic context. — Capital in Poland is today one of the most expensive in Europe. This means that revitalizations and adaptations of existing buildings dominate instead of new office buildings – says. This forces fit-out companies to be flexible and enter new segments: hotels, housing and public projects.
How has fitness changed over the last 25 years?
Just a quarter of a century ago, offices resembled labyrinths of corridors and closed rooms. Then came the era of “monumental” corporate headquarters, and then the fashion for open space and glass interiors. — Over time, she got involved in projects acoustics, then well-being, CO2 footprint reduction and energy efficiency in line with ESG – Paweł Brodzik enumerates.
Rock Capital office
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The pandemic proved to be another turning point. Fit-out is no longer just a matter of aesthetics, but has become a tool for attracting people to offices in the realities of hybrid work.. — Today, an office must be a magnet – a place for focus, team integration and cooperation – says Brodzik.
According to Rajmund Węgrzynek thinking about the role of the office itself has also changed. – It's not just about being pretty. The space is intended to support organizational culture, because the pandemic has shown that it cannot be built solely remotely, he notes.
Revitalizations, refits and adaptations – key words of the market
Few new office buildings are being built. Today, the market is alive with reconstructions and rearrangements. — The investor wants to achieve the best effect within a given budget, and often a thorough adaptation of an existing building makes more sense than building from scratch, says Paweł Brodzik. This solution is also more ecological and responds better to real demand.
Rajmund Węgrzynek emphasizes that Today, every project is a balancing act between expectations and financial possibilities. – Paradoxically The biggest enemy of the budget is the customer himselfbecause each change in the process generates additional costs or delays, he notes. Therefore, contractors are increasingly often involved at the stage of technical analysis of the building.
Fit-out costs, material prices and the labor market
How much does a fit-out cost? This is the question the industry hates the most. — There is no single price, because 99 percent solutions are individual – says Rajmund Węgrzynek. Unlike building construction, where mathematics dominates, details and the integration of many elements are key here.
Costs are also influenced by the labor market and material prices. — Automation will only help partially. People's experience and the contractor's financial stability are still decisive, adds Paweł Brodzik.
Hotels and the premium segment: fit-out as an investment
In hotels and the premium segment, fit-out is perceived as a long-term investment. — Standards are rising and customers expect personalization, says Rajmund Węgrzynek. Such projects are dominated by tailor-made solutions, more expensive materials and greater precision of workmanship.
— This is not mass production of identical interiors. Luxury is about individuality, and this comes at a cost – emphasizes Paweł Brodzik, also referring to luxury apartments and private residences.
Hotel Focus Wrocław
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Fit-out in apartments: how much does it really cost?
Although fit-out is mainly associated with offices, the same standards increasingly apply to housing. According to Paweł Brodzik, today, in order for an apartment to be functional and consistent in quality, a specific budget must be taken into account. – To keep it together, the real cost of finishing is 6-7 thousand. PLN per square meter – he says directly.
These are the amounts that show that interior finishing has ceased to be an addition and has become an integral element of the property's value — also for the ordinary Kowalski.
The future of the fit-out and real estate market
The next few years are further increase in the importance of refits, ESG and flexible spaces. – The office will be a tool for building efficiency and organizational culture – predicts Paweł Brodzik.
Rajmund Węgrzynek adds that Only those companies that understand investment finances and can provide realistic advice will survive. — The market will force cost efficiency, wise management of materials and technology. Execution alone is no longer enough, he concludes.
