June 2017

From a landlord’s perspective, shared service centers make near perfect tenants given their demand for large floorplates and typically long-lease periods. That makes it all the more important SSCs have good representation when looking for a property, says Valter Kalaus of tenant representation specialists VLK Cresa. Hungary has become a preferred location for SSC largely because of labor costs, Kalaus says, and a ready availability of young people with good language skills, especially beyond the relatively common German or English. And if SSCs like Hungary, landlords in Hungary certainly like SSCs. “With average leases between three and five years, SSCs tend to sign for a longer-term,” Kalaus explains. “The amount of IT infrastructure they put in makes them less likely to move, and that gives a feeling of greater comfort to the landlord.” The sector also represents a sizeable share of the overall office