CEE-based flex office operator New Work continues to expand in its key markets. In Budapest, the company opened the second phase of its business centre in the Science Park office building in South Buda, adding 2,000 sqm of high-quality flex office space to the local market. In Warsaw, New Work opened a brand location, offering 1,135 sqm, in the Tulipan House office building in the city’s Służewiec district.

The third quarter of 2022 completes the dynamic new supply period observed in the Polish office market in recent years. Between January and September 2022, developers delivered 39 new investments, which increased the sector’s total stock by 560,100 sqm to over 12.7 million sqm. The period under review also registered intense activity on the demand side. At the end of Q3 2022, more than one million sqm was leased across Poland. However, the office market, like other sectors of the commercial real estate market, faces many challenges, including rising energy costs or the expected supply gap and rising rents. AXI IMMO presents data summarizing Q3 2022 in the Polish office market.

Łużycka Office Park (buildings A, B, C and D) and Łużycka Plus, all located in Gdynia, have a new owner - a joint venture of Czech open-ended real estate fund Investika and Luxembourg-based private equity investor Bud Holdings. The price has not been disclosed. 

Kamil Kowa, Member of the Board and Head of the Corporate Finance & Valuation Department at Savills Poland, talked to Property Forum about the current slowdown in the Polish residential market, PRS funds' expansion and the forecast for private student accommodation in that country.

Hyatt Hotels Corporation announced the opening of Hyatt Place Kraków, marking the first Hyatt hotel in the city. The hotel represents the return of the Hyatt brand to Poland.

Panattoni has passed 130,000 sqm delivered for LX Pantos in Poland. The Korean logistics operator has increased the space it occupies within Panattoni Park Wrocław XIII to 50,000 sqm.

Q3 2022 saw up to a 30% q/q drop in the number of flats sold on the primary markets of Warsaw, Kraków, Wrocław, the Tri-City, Poznań and Łódź. The total number of flats sold in these markets was only 6,600. JLL experts emphasise that the last time such low demand for real estate occurred in Q2 2020 when sales offices were closed due to the COVID-19 pandemic wave.

Q3 2022 in the Warsaw office market saw record-low developer activity. At the end of September, only 160,000 sqm of space was under construction. As a result, new supply is expected to drop significantly in 2023, with only 60,000 sqm of office space coming to the market, JLL reports.

Berlin-based Catella Residential Investment Management GmbH has sold two centrally located fully-let residential and student housing assets in Warsaw and Kraków in Poland to institutional investors in Austria and the Netherlands for more than €60 million on behalf of Munich-headquartered AIFM platform Catella Real Estate AG (CREAG).

We can see more interest coming from government entities to rent office space in modern office buildings in CEE. We also see large companies centralising their office spaces in a single building. Property Forum asked Tomasz Lisiecki, CEO of TriGranit about his assessment of these trends.