ARTICLES LABELLED WITH TAG office

The 12-month rental outlook for both prime and secondary CBD offices is stable in Bucharest and Budapest and negative in Warsaw. In Prague, the outlook is negative for prime assets and stable for secondary assets. The vacancy rate is expected to increase over the coming year in all of the four capital cities. Occupier conditions are currently neutral across the region, with Bucharest and Budapest expected to become tenant markets over the next 12 months, according to Colliers International.

Funds managed by Partners Group are to acquire nine newly built, largely occupied office buildings from BUMA's portfolio and two assets under construction with a total leasable area of approximately 125,000 sqm for circa €200 million. The assets are located in Kraków and Wrocław. REINO Partners will partner with Partners Group to manage the portfolio.

Half of the employees who normally work in office buildings continued to work mainly from home even after the state of emergency was lifted, despite the fact that, during the summer, most companies began to bring back their employees partially or through rotation in the office spaces, as shown by a research study conducted by Cushman & Wakefield Echinox regarding the working methods of employees in Romania during the COVID-19 pandemic.

Partially due to the pandemic, demand for office space on Poland’s largest regional markets from January to September was 11% lower year-on-year. Many tenants are temporarily postponing expansion plans and relocation decisions, according to JLL’s summary.

AFI Europe Romania has inaugurated its AFI Brasov mixed-use project on 21 October. The project, located near the city’s historic centre, includes a modern shopping centre with 45,000 sqm GLA and 15,000 sqm GLA of office space rising above the retail floors.

Due to the prolonged COVID-19 epidemic, some tenants on the Warsaw office market are postponing relocations, looking for sublessees or downsizing their offices. According to the Cresa Polska report "Occupier Economics: Office market in Warsaw in the third quarter of 2020", office take-up amounted to 113,000 sqm in Q3 2020, which is the weakest quarterly result in the last 10 years. Warsaw’s office stock reached 5.8 million sqm.

The impacts of COVID-19 are becoming visible on Prague’s office market with a rapid decrease of net demand and the postponement of several completions of new office projects. At the same time, the share of sublease deals within the total take-up increased from around 1% in previous quarters to 7%. The Prague Research Forum announced the office market figures for the third quarter of 2020.

GTC has expanded its portfolio of green projects. The Matrix A and Matrix B office buildings in Zagreb have both been granted LEED Platinum certifications. Thus, 80% of all GTC’s office properties now bear an eco-friendly label. 

Demand in Q1-Q3 2020 was 35% lower on Warsaw’s office market than in the corresponding period last year, while another trend is a growing volume of office space available for sublease.  JLL summarised the Warsaw office market at the end of Q3 2020.

Immofinanz has appointed Savills as sole property manager for its portfolio of seven office buildings in Prague, Czech Republic, with effect from January 2021. The total floor area of the assets is approximately 123,000 sqm.