Modern mixed-use complexes, open to social interactions and meeting local needs, which today are winning over traditional office buildings, set the direction for the development of investments in the commercial sector 

The Polish office market was booming until the pandemic struck. 2020 brought many changes and a downturn in developer and tenant activity. How is the market doing in the new environment it found itself in over a year ago? Real estate advisory firm Cresa has analysed the current levels of pre-lets and the office development pipeline in Poland.

According to Savills latest research, London City and West End, Paris and Warsaw’s office markets appear most attractively priced in Europe this year due to the opportunity for yield compression and/or attractive yield spreads to risk free rates.

The finalisation of the purchase of a controlling stake in Archicom, the sale of 463 apartments and handing over 154 apartments to clients, the start of leasing of two completed Resi4Rent projects in Warsaw, maintaining average leasing in all completed Resi4Rent buildings at the level exceeding 95%, as well as the sale of the Villa Offices building in Warsaw Brewery – this is a summary of Echo Investment's operating activities in the first quarter of 2021. During this time, the Group generated €5.46 million (PLN 24.5 million) of net profit.

Close to 88% of the employees in Romania believe that offices will exist in the future, but most say that the post-pandemic workspace needs to be transformed, according to a survey commissioned by Genesis Property. 

Romania’s Akcent Development Group, specialized in the development of residential and office projects in Bucharest, recorded a turnover of €48 million in 2020.

Futureal’s Budapest One office park has achieved another major milestone in its development, as the second and third phases of the complex have reached their highest point. Budapest One will house both Vodafone's new headquarters and BT's regional service centre.

IWG has announced the opening of a brand-new centre in the Szervita Square Building in Budapest. The centre, which opened last month, is operating under the Signature brand, which provides workspaces in the most sought-after locations in the world.

Although many projected that office development projects would be cancelled due to the pandemic, that is not what the numbers are showing. Developments are ongoing despite the emergence of working from home and Eston forecasts about 160,000 sqm of offices for rent to be put on the market this year, following 230,000 sqm in 2020. Meanwhile, the pre-lease ratio of buildings under construction is lower than seen in previous years, in line with the current demand trend.

The rent environment for Bucharest offices has been on a downward trend since the onset of the health crisis as flexible work arrangement that limited the presence of employees in offices were implemented, according to Investpoint.