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Romanian lender BCR, part of Austria’s Erste Group Bank, has reportedly reached an agreement to sell the Bucharest Financial Plaza office building on Calea Victoriei that served as the headquarters of defunct state lender Bancorex.  The buyer is a German investor and the details of the deal will be announced in early December, Economica.net reports.

According to the latest Savills research, Prague’s office real estate market is fairly priced despite some minor outward prime yield movement during the first half of the year. This broader continent-wide outward yield movement has helped push the average yield spread between prime European offices and Eurozone government bonds to 325 basis points, more than 100 bps above the historic average.

CA Immo signed and closed the acquisition of Postepu 14, a Class A office building located in the Mokotow district of Warsaw, from developer HB Reavis. The property totals around 34,500 sqm GLA and is nearly fully let to tenants such as AstraZeneca and Samsung Electronics. The purchase price is approximately €87 million, with annual gross rental income of around €6.5 million, reflecting a 7.5% gross initial yield.

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.