Pénzcentrum: What trends do you currently see in the Budapest and Hungarian retail and office markets?
Bea Déri: We have a diversified portfolio, including office buildings, shopping centers, retail parks, and hotels – each sector shows different trends. One thing is certain: COVID affected all our tenants, and the current economic environment also strongly impacts them. Customer habits have changed.
After the pandemic, there was a drastic shift to home office, which has somewhat normalized, and more people are returning to office buildings. However, the spaces and their functions have completely changed; tenants now have very different expectations from office spaces. Previously, offices were typically open-plan or partitioned, with minimal communal areas and almost no experiential elements. Today, the focus is on well-designed functional spaces and flexible solutions.
Digitalization is increasingly important. Paper-based administration is becoming obsolete, and information flows mostly through cloud-based digital channels. In terms of sustainability, some tenants are now required to prepare EU sustainability reports, which heavily influences their choice of office buildings.
Two additional priorities guide how we manage and develop our office buildings: comfort and a sense of security. It’s crucial to ensure that tenants’ physical and mental wellbeing is supported responsibly.
Q: Is there growing demand for green spaces and private parks in office buildings?
Déri: Absolutely. The traditional office development model – erect a building with nice design, a lobby, and minimal green space – is no longer sufficient. We now design parks with sports areas, outdoor meeting pavilions, relaxation zones, and even workstations.
Ten years ago, when CPI entered the Hungarian market, we began designing spaces around people, considering the rhythm of their daily tasks. Our Human Innovation program offers wellbeing services, allowing tenants to address health needs during lunch or take part in sports and recreation activities. Today, these are standard expectations.
We think network-wide rather than building by building. For example, the CPI Club allows tenants to use our entire portfolio seamlessly – if someone lives near Haller Gardens but works in Budafok, they can work closer to home in a CPI Corner. If they want an impressive location for a meeting or need services like a summer camp for their children, our network can accommodate these needs. This flexibility is a key differentiator in the market.
Q: How important are tenant feedback and communication?
Déri: Tenant feedback is crucial. For example, our recent satisfaction survey gave us valuable insights to improve communication. The challenge is reaching thousands of tenants effectively amidst constant noise.
Our communication strategy is multi-layered. Platforms like CPI Club and other office and retail products allow us to tailor messaging. We pay attention to tenants’ habits and preferences, and constantly adapt formats and channels to be effective – sometimes using short videos, sometimes more in-depth content. PR remains powerful; well-crafted ESG campaigns, for example, have increased traffic and engagement.
Q: What role does social media play? Which platforms are most effective?
Déri: Social media plays a major role. Our LinkedIn acts as an editorial platform, and TikTok has become highly effective for retail properties, focusing on fun and experience. Shopping centers must provide experiences – otherwise, online commerce will take over. Our events and campaigns drive foot traffic while supporting tenant businesses.
Q: How does your communication strategy adapt across different countries?
Déri: We tailor communications to each market. Corporate guidelines exist, such as logos or slogans, but our local teams have significant creative freedom. For sustainability and ESG, we follow global standards, but we also take initiative – for instance, introducing green leases and issuing green bonds in Hungary, setting examples for the industry.
Q: How has the pandemic and economic environment influenced repositioning of retail and office properties?
Déri: We viewed it as an opportunity. Following a merger two years ago, we integrated multiple brands into a service-based network for tenants. Traditional property management or repositioning was never our approach. Having in-house expertise allowed us to manage challenges like energy price spikes effectively, giving tenants predictability and security.
We focus on tenant engagement through workshops, discussions, and practical services – such as helping tenants navigate future waste management regulations.
Q: How is CSR and sustainability integrated into CPI’s activities?
Déri: Children and communities are central. We support various charitable projects and involve tenants in CSR initiatives. We renovate hospitals, schools, plant trees, and maintain parks with biodiversity in mind. Greenwashing is avoided; our landscaping is designed to support insects, plants, and ecological diversity.
Q: How do data-driven and AI-based solutions factor into marketing and operations?
Déri: Data is crucial for understanding tenant behavior and shaping marketing campaigns. AI helps, but must be supervised carefully. In Hungary, adoption is slow due to traditional workflows and conservative mindsets, but younger employees are helping to accelerate the transition. Continuous learning is key in both communications and property management.
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