International real estate advisor Savills has reported that investors into Europe’s retail sector are shifting their interest to some of the continent’s non-core markets. Investment into Europe’s retail sector during Q1-Q3 2016 reached €33.3 billion across the 15 markets that Savills covers, down 28% from the 2015 record volume. However, despite the overall drop of total turnover in the two largest markets of the UK (-18%) and Germany (-46%) during this time period, Europe’s non-core markets in contrast have experienced a significant rise in retail investment. These include: Ireland (223% to €1.46 billion); Poland (126% to €1.4 billion) and Italy (119% to €1.8 billion).

Looking at what is going on in world politics, TriGranit’s CEO finds it difficult to comprehend why many still stress the political risk factor when talking about the Central European real estate market. He’s optimistic about the future and expects further diminishing returns on investment, along with new investors appearing in Budapest. Árpád Török talked to us about plans for developing TriGranit and the future of the real estate market.

HB Reavis announced that construction has commenced on Varso Place, its flagship development in Warsaw’s city centre. Plans for the 140,000 sqm mixed-use scheme include one of Europe’s tallest towers and two mid-rise buildings. Completion is scheduled for 2020.

2016 saw the highest developer activity in the history of the Polish office market. New supply is expected to remain strong in 2017 with 1.4 million sqm of new space currently under development. JLL published its preliminary summary of Poland's office market performance in 2016

American investor Exeter Property Group has finalized its acquisition of the North-West Logistic Park warehouse and production complex in Szczecin, Poland from Waimea Holding. The value of the transaction has not been disclosed. 

According to JLL’s review of last year, the Czech industrial market has exceeded the 6 million sqm mark in 2016 which makes it – along with the Polish one – one of the most advanced markets in CEE. 2016 gross-take up on the Czech industrial market totalled 1.2 million sqm which makes it one of the best years on record after the similarly successful years such of 2014 and 2015. Due to strong constant demand, the national average vacancy rate declined to 4%, which is the decade´s low and one of the lowest indicators in the market history. 

Aviva Investors and LaSalle Investment Management have acquired River Garden II & III in Prague, on behalf of the Pan-European Fund Encore+ for €84 million. River Garden II & III, developed by HB Reavis is Class A office building with ground floor retail, located in the Karlin district of Prague. This is the first acquisition that Encore+ has made in the Czech Republic.

JLL has been selected by the new owner of Swan Office & Technology Park as property and asset manager of the office building located in the Northern part of Bucharest. JLL's responsibilities comprise maintaining relations with tenants and extensive operational management services including overseeing subcontractors and maintenance costs.

According to JLL’s preliminary forecasts, the total volume of real estate deals on the Polish investment market in 2016 may amount to almost €4.4 billion. The real standout performer was the retail market which came in with nearly €2 billion, followed by the office segment with €1.7 billion and the industrial/logistics sector with nearly €0.5 billion.

Located at 111 Marszałkowska Street in Warsaw, the Saski Point office building has received the BREEAM In-Use International certificate with a “Very Good” rating in Building Management and Asset Performance. Cushman & Wakefield property manages the facility on behalf of CA IMMO.