The COVID-19 crisis is expected to accelerate change in global supply chains, manufacturing and online retailing that could benefit the European property market, says Colliers International in its latest “Trends Emerging and Accelerated by the Covid-19 Pandemic” report.

Colliers International has been appointed to manage the first stage of the Face2Face Business Campus in Katowice, which is being developed by Echo Investment. The commission brings the Silesian portfolio of Colliers’ property management department up to more than 40,000 sqm of office space.

In Q1 2020, approximately 50,000 sqm of modern retail space was delivered to the market in Poland. The construction of four schemes was completed: Galeria Chełm (17,500 sqm), Stop Shop Siedlce (14,100 sqm), Galeria Kupiecka in Otwock (10,000 sqm) and Vendo Park Jawor (6,700 sqm). However, due to the onset of the coronavirus epidemic, the new shopping centres have limited possibilities to serve consumers, in the same as all large retails facilities in Poland.

Owners are looking carefully at their exposure to risk, especially in terms of covenant strength and government measures affecting rental payments, according to Colliers International’s CEE Investment report for Q1 2020. Residential tops the sectors due to one deal but offices (27% share) have maintained their place in the order of preference, closely followed by industrial and logistics (26% share) in Q1 2020.

Colliers International has taken over the management of Prosta Office Centre in Warsaw. The current owner of Prosta Office Centre is KGAL Investment Management which acquired it from Cromwell Property Group at the beginning of this year.

The preliminary investment volumes for the CEE region for Q1 2020 have reached ca. €3.7 billion, despite the onset of COVID-19 in CEE at the beginning of March, according to Colliers International. 

Almost 70% of landlords and tenants in the office market believe that the COVID-19 epidemics will continue to affect their business throughout this whole year, with first signs of recovery being expected to start with 2021, according to a study conducted by Colliers International among 60 landlords and more than 100 tenants.

Investors still show interest for real estate acquisitions Romania, despite the COVID-19 pandemic, according to a survey conducted by Colliers International among more than 60 real estate companies.

Colliers International’ latest report “COVID-19 European Real Estate Markets Government Response” presents information on how the national governments across EMEA are supporting businesses with specific reference to commercial and residential rent/mortgage payments, business loans and grants, taxation allowances and business rates and household/individuals salaries. Force majeure impact on lease contracts is also considered.

The preliminary investment volumes for the CEE region for Q1 2020 have reached ca. €3.7 billion, despite the onset of COVID-19 in CEE at the beginning of March. This volume was significantly boosted by the ca. €1.3 billion acquisition of the Residomo portfolio in the Czech Republic by Heimstaden, however, it still represents a y-o-y growth of 68% over Q1 2019 (ca. €2.2 billion) and 28% over Q1 2018 (ca. €2.9 billion).