Global real estate - one of the largest contributors to greenhouse gas emissions - should become net-zero in less than three decades. With as much as 80% of the predicted building stock for 2050 already in existence today, this best illustrates the scale of the challenge. Meanwhile, the commercial real estate market has not, as yet, officially acknowledged either the costs of necessary property upgrades or the costs of delaying or not taking any action. At the same time, due to a lack of market standards, benchmarks and a system of data collection, valuers can hardly factor ESG risks in property valuations. This impasse has significantly increased the risk of a carbon bubble, says Cushman & Wakefield. 

According to the latest data from Cushman & Wakefield, the average retail vacancy rate in Poland’s largest cities currently stands at 3.5%, down by 1.2 pp year-on-year. More importantly, falls were recorded in six out of the eight largest cities, with the availability of retail space at the lowest in Kraków, Łódź and Szczecin. This suggests a gradual retail recovery in Poland, says Cushman & Wakefield. Meanwhile, as the market continues to stabilize, retail landlords should increasingly turn their focus onto diversifying their offer.

There are currently more than 56,000 sqm of office space in Prague available for immediate occupation. These are mainly office spaces that have been vacated by their previous tenants due to relocation to new premises or downsizing because of the transition to a hybrid office model. Companies that want to get up and running quickly in their new offices and make substantial savings on the capital costs required for fit-out have plenty to choose from. This secondary supply is a good complement to the shortage of available office space in new buildings that Prague is currently facing, according to the Cushman & Wakefield report.

Popeyes is to open its first Warsaw restaurant in Złote Tarasy on 21 September. The fast food chain from Louisiana is the seventh new tenant to come to Złote Tarasy in 2023 after such brands as LUSH, Candy Pop, and Hugo. Cushman & Wakefield, which is responsible for the re-commercialisation and property management for the scheme, expects to see more international debuts in Złote Tarasy later this year.

Cushman & Wakefield has appointed Tomáš Némethy MRICS as a Managing Partner and Head of Slovakia. This move underlines the firm's commitment to involving its esteemed presence in Slovakia and its ambition for further growth.

Cushman & Wakefield has appointed Rudolf Nemec as Partner and Head of Capital Markets for Slovakia. Rudolf gained his in-depth knowledge of the real estate market, track record, and business drive during his ten years at JLL.

With the new academic year approaching, thousands of students are stepping up their search for accommodation. Meanwhile, Cushman & Wakefield has identified that, given the current bed provision in Poland, just 10% of all students can be accommodated in university-owned and private halls of residence. Those considering looking for privately rented accommodation will, however, face many challenges. According to Otodom, the availability of rental residential units in many key university towns is shrinking while rents continue to rise, with rental growth at the end of July 2023 averaging 1.5% month-on-month (m/m) and 8.5% year-on-year (y/y).

According to the latest report from Cushman & Wakefield, gross warehouse take-up in Poland stabilized at over 1 million sqm in Q2 2023. Furthermore, at the end of June 2023, there was 2.1 million sqm under construction, with the relatively strong development activity being driven by higher rents encouraging investors to launch new projects. In addition, Poland entered the top three EU markets in terms of warehouse stock, jumping into third spot behind Germany and France.

Prague is the second most attractive market in CEE for hotel operators with a presence or interest in the region. Its popularity is backed up by H1 2023 being a period of healthy recovery for Prague hotels which achieved the second highest (after Budapest) RevPAR (revenue per available room) among the region’s capitals. In this year’s first six months, it reached €69, which is an increase of 57 percent versus H1 2022, and already a 5 percent increase versus the pre-Covid H1 2019. This was primarily driven by the strong ADR (average daily rate) growth, which surpassed 2019 levels by over 20 percent. Hotel operators are optimistic about the industry’s outlook and keen to expand across the CEE region. However, 28 percent of planned hotel projects in the region are facing delays or put on hold, mainly due to the increased development costs, reports Cushman & Wakefield in the Hotel Operator Beat survey.

Nrep, the ESG-focused real estate investor with €19 billion of assets under management, has purchased a controlling stake in Polish industrial developer 7R. Following the deal, Nrep will invest around €200 million of new equity in the company.