ARTICLES LABELLED WITH TAG report

Although the majority of modern office stock is concentrated in Poland’s largest metropolitan areas, companies are increasingly looking beyond the core markets for office space Cushman & Wakefield has prepared a report on 12 alternative locations for BSS tenants.

In Q1 2020, Echo Investment commissioned four housing projects and two office buildings, sold 399 apartments and handed over 190 to clients, started the rental process in the second Resi4Rent building in Wrocław and secured the purchase of attractive plots of land on which 4,000 apartments can be built. During this time, the Group’s next profit exceeded PLN 40 million.

Immofinanz’s rental income in Q1 2020 rose by 13.4% to € 74.0 million, above all due to the expansion of the portfolio through acquisitions and completions as well as a growth of 1.9% in like-for-like rental income. The results of asset management increased by 18.1% to €59.5 million, and the results of operations were 18.0% higher at €43.5 million. However, the revaluation results of €-45.0 million from standing investments and goodwill reflect the adverse effects of the COVID-19 pandemic. Net profit for Q1 2020 was, therefore, negative at €-37.6 million.

In the current time of intense market changes, space in centrally located boutique office buildings might become a good option for companies migrating from large Warsaw facilities, according to consultancy firm Walter Herz.

In Q1 2020, the total office stock of Poland’s nine largest markets (Warsaw, Krakow, Wrocław, Tricity, the Upper Silesian and Zagłębie Metropolis, Poznań, Łódź, Lublin, and Szczecin) reached close to 11.3 million sqm, up by 5% on the same period in 2019. Cushman & Wakefield summarised Q1 2020 on the Polish office market.

European real estate investment activity is set to plummet by 50% before rebounding sharply within the next 12 months, according to Savills, who predicts that neither the speed or the depth of the crash will be as bad as the global financial crisis when volumes across the continent plunged by 72% between 2007-2009.

According to a study conducted by research body Inquiry for the Polish Council of Shopping Centres (PRCH), 51% of those surveyed visited shopping centres in the first week after they reopened following the easing of the lockdown measures. Out of these, 64% visited shopping centres to make specific purchases, while 31% went to browse the stores or to seek out promotions.

CA Immo presented its results for the first quarter of 2020. The company registered solid growth in rental income (+7.2% year-on-year) and although the negative revaluation result reflects the exceptional economic situation now prevailing, other positive earnings contributions made up for this.

The stock of industrial and logistics space in Bucharest has doubled between 2015 and 2020 with the capital of Romania being the most dynamic market in the Central and Eastern European region and a logistic regional hub throughout the analyzed period, according to Cushman & Wakefield Echinox.

The COVID-19 pandemic caused chaos across the global economy. Within the commercial real estate market, logistics has weathered this storm better than other sectors, allowing planning of new developments to gradually resume following price corrections. Changes in financing conditions for real estate development may alter the new supply structure, with a likely increase in demand for BTO (build to own) and BTS (build to suit) development projects and a decline in speculative schemes, according to advisory firm Axi Immo.