The amount of unused space in the portfolio of VAS “Valsts nekustamie ipšumi” (VNĪ) from properties intended for rent is 4% of the total leasable area of buildings, VNĪ board chairman Renārs Grishkevičs said in an interview.
Although VNĪ is one of the largest property managers, the capital company is responsible for only 13% of the state-owned properties, Grishkevičs said.
He explained that VNĪ divides the assets it owns and/or manages into several portfolios – the basic portfolio, the asset portfolio and the expropriated portfolio. The basic portfolio includes properties that will also be needed in the long term to provide the public sector with premises. The share of unused areas in the basic portfolio, for which a specific user is not yet known, from the total portfolio volume is only 1.4% of the premises included in it in the area of 697,100 square meters.
A slightly different situation arises in the asset portfolio, which includes properties that may not be needed for the needs of the public sector in the long term, so they may be sold or rebuilt in the future, adapting to specific needs, Griškevičs informed.
Also, this portfolio includes valuable or profitable properties, and by selling them in the future, but renting them out in the short term, additional funds can be obtained for investment in the properties of the core portfolio. In the asset portfolio of 161,600 square meters, the share of unused areas for which a specific user is not yet known is 15%.
At the moment, the amount of leasable but unused premises in both portfolios is only 4% of the total leasable area of buildings.
“Actually, all the unoccupied premises have a certain future perspective – there is either an approved development project or a design for which documentation is being prepared, or they are being adapted to the needs of new tenants. Only some empty buildings have not yet been decided,” Grishkevich said.
He reminded that significant changes have been observed in the work environment in recent years. The restrictions introduced during the Covid-19 pandemic, which created the need to reorient to remote work, proved people’s readiness to work remotely or in a hybrid work mode from anywhere in Latvia. Modern personnel management also intends to offer flexible working hours to employees whose duties allow it.
Thus, hybrid work is starting to become dominant, and this means fundamental changes in the size, planning and availability of the premises needed by the public sector, Griškevičs explained. In other words, there is no longer a need to maintain such spacious offices, because 100% of all employees are not on site.
VNĪ has recognized the public sector’s need for modern premises in Riga and the regions and is working together with the Innovation Laboratory of the State Chancellery on new work organization solutions in the public administration. At the same time, the optimization of the used areas is also carried out by the public sector institutions themselves.
So, for example, the Ministry of Finance and the institutions under its authority were concentrated at Smilšu Street 1, Grishkevičs mentioned. The State Treasury, the Procurement Supervision Office have already moved to this building, and the Lotteries and Gambling Supervision Inspectorate is also moving. Also, the Ministry of Education and Science is moving its structural unit to the ministry building at Valņu street 2.
At the same time, the optimization of the premises also means a significant saving of financial resources – rental fees and utility costs – Griškevičs added.
