This year's EXPO REAL trade fair in Munich confirmed that the European commercial real estate market is gradually regaining momentum, though not on the terms seen in the previous cycle. Fewer investors are waiting for conditions to improve, while more are focusing on opportunities to complete transactions in the current environment. Capital remains available but highly selective, with asset quality, cash flow stability, tenant credibility and the viability of business assumptions now carrying far greater weight than access to financing alone.
"Poland remains one of the markets benefiting from the ongoing transformation of European supply chains. In many conversations held during EXPO REAL, logistics was identified as one of the sectors with the strongest growth potential in the coming years, supported by the expansion of e-commerce, nearshoring trends and the reorganisation of supply chains. At the same time, the ability to bridge gaps between parties' expectations and flexibility in finding solutions are becoming increasingly critical," said Grzegorz Chmielak, Head of Capital Markets and Valuation at AXI IMMO.
Investors are also increasingly convinced that future investment performance will depend primarily on asset management quality. Operational improvements, refurbishment projects and the ability to adapt assets to changing tenant requirements are becoming more important sources of value creation. "One of the most interesting observations from this year's EXPO REAL is the changing approach of office owners to managing the performance of their buildings. Even in the Warsaw office market, where limited new supply is creating more favourable conditions for landlords, translating market dynamics into stronger performance at the individual asset level requires much more than effective leasing. In the regional markets, tenant retention and maintaining the competitiveness of existing properties remain additional challenges," said Tomasz Michalczyk, Head of Office Advisory at AXI IMMO.
A recurring theme at this year's fair was the fragmentation of functions responsible for a building's commercial performance. Leasing, property management, marketing and technical management often operate independently, and while each may perform effectively on its own, this does not necessarily translate into optimal results or value maximisation for the asset as a whole. Alongside offices, logistics continues to attract considerable attention, with investors also analysing redevelopment, repurposing and repositioning projects involving existing properties.
International capital is growing more active, with investors from Asia and North America showing increasing interest in Europe and looking beyond the most mature Western European markets. "Poland is perceived as a market that stands out among European countries not only because of its strong macroeconomic fundamentals, but also due to the high level of diversification in its growth drivers. We expect investment volumes this year to exceed last year's levels. Significant investors from the United States, Asia and Western Europe are actively exploring opportunities in Poland, alongside capital from the Czech Republic, the Baltic States and domestic investors," said Joanna Lewandowska, Associate Director, Capital Markets at AXI IMMO.
