Temporary use of buildings also benefits the property owner

The City of Espoo aims to develop Kera into an urban, comfortable and safe city district with approximately 14,000 residents where residents and companies can implement sustainable choices, services and solutions. One of the cornerstones of Kera’s development is the circular economy, of which the temporary use of buildings is one example. Temporary use means things such as temporarily renting the premises of a building to be demolished to new operators, which prolongs the useful life of the building and reduces its carbon footprint throughout its life cycle.

The best-known example of the temporary use of premises in Kera may be Keran Hallit, the former logistics centre of S Group. Since 2019, Keran Hallit has provided all types of premises for different purposes, including exercise, culture and food production. At Keran Hallit, the lessees have had the opportunity to pilot, test and develop their services. The temporary use of Keran Hallit has been significant for the future of the area, especially in terms of increasing awareness of the area, establishing sustainable services and developing the urban structure. 

The temporary use of the Keran Hallit premises has benefitted both the lessees and their customers. Keran Hallit has provided premises for new growing companies, of which sports services with their own established customer bases are an example. But how does the temporary use benefit the property owner? Mari Pitkäaho, Property Asset Manager at SOK, says that the Keran Hallit project started with the idea of making Kera more widely known even before new residents move to the area. Such early-stage regional marketing is expected to be reflected in the value of the land later on. In addition, the temporary use of the premises provided the property owner with an alternative to keeping the premises empty or having them demolished immediately. It also covered part of the maintenance costs. However, advancing the project also required making an effort in things such as permit processes as well as adjusting the intended use of the premises. Despite this, the motivation to implement the change was high, as the benefits were seen as significant.

The temporary use of Keran Hallit has been a success in many ways and the project has received positive feedback from various parties. The project launched cooperation and networks that would not have been created otherwise. However, the temporary use of the premises will soon come to an end, as the demolition of Keran Hallit will start in 2025. Many of the premises’ users have wondered whether it would be possible to preserve the buildings, but Mari Pitkäaho says that the current use of the premises has only been possible thanks to its temporary nature. For example, the rent rates have been low despite the premises’ excellent location and this is due to the fact that the rental revenue does not need to cover the long-term maintenance of the property.

What will happen in the future? There are currently many types of companies operating in the temporary premises, and the companies will need premises in the future as well. When the construction of Kera begins, there will still remain the question of how to retain the urban culture and business activities created in the area, how to spread the established good practices elsewhere and how to take the practices into account in urban development on a wider scale. At Keran Hallit, the popularity of the temporary use of the premises surprised all parties, and it has been a successful experiment from the property owner’s perspective as well. The experiment has also made the area more known.

Read more:  

Keran Hallit(external link, opens in a new window)

How are companies’ changing needs for premises met in Espoo?

Temporary use of industrial space boosts innovation

Former logistics centre in Kera boosts new business

TEXT: Laura Krootila