According to a report published by Newmark Polska, during the first three months of 2023, occupier demand on Poland’s regional city office markets remained strong amid increasing office availability and a further drop of development activity. The markets continue to adapt to the new standard created by the rise of the hybrid working model and the growing focus on flexibility in office layouts and uses.
In the first quarter of 2023, developers focused on regional markets in Poland. Kraków, Wrocław, and Tri-City have been enriched with new office spaces. Meanwhile, no new office buildings were built in Warsaw. Current interest from tenants remains at a fairly high level. Demand recorded in Q1 2023 was distributed proportionally to the Warsaw market and regional cities. Tenants attach importance to ESG issues and the comfort of working from the office for their employees. The challenge facing the office sector is rising service charges. AXI IMMO presents data summarizing Q1 2023 on the office market.
Adventum Group, which focuses on CEE real estate investments, have completed the fifth acquisition through its Adventum Penta Fund SCA SICAV-RAIF. The fifth acquisition of the fund is the Wola Retro office complex in Warsaw, Poland which was constructed in 2019 by Develia SA.
According to a new report published by Newmark Polska, the first three months of 2023 saw no new office completions in Warsaw as occupier activity weakened and the capital’s vacancy rate remained flat compared to the previous quarter. Developers are, however, commencing or planning new office projects in the city.
No new office completions were noted in Warsaw during the first quarter of 2023, with office take-up falling by 40%. Key challenges facing office tenants hoping for an economic turnaround, as forecast by real estate advisory firm Savills, include a substantial increase in service charges which are expected to rise by 30-60%, depending on the type and class of an office building.
The Polish Chamber of Commercial Real Estate (PINK) has published figures on the office market in Warsaw for Q1 2023. The data is sourced from advisory companies from the commercial real estate sector (BNP Paribas Real Estate, CBRE, Colliers, Cushman & Wakefield, JLL, Knight Frank, Newmark Polska, Savills) and includes information on modern office stock, new completions, take-up volumes and vacancy rates.
Panattoni is building another strategic development for the Warsaw market. The developer has been granted €57 million in financing from Bank Pekao SA for the development of Panattoni Park Nadarzyn II, which is to become one of the largest business and industrial platforms in the region.
The Karimpol Group has received a building permit for the second phase of the Skyliner complex. The 130-metre-high office building will be erected at Daszyńskiego Roundabout in Warsaw‘s Wola district next to the first phase of the Skyliner project. The second phase of the investment project, also designed by the APA Wojciechowski Architekci studio, is scheduled to start in the autumn of this year. The entire complex at 67 Prosta Street will offer 73,000 sqm of leasable space.
Moje Miejsce II, which is the second office building of Echo Investment’s multifunctional project in Warsaw, was acquired by Trigea Real Estate Fund. The project is fully leased to tenants such as Tchibo or NetWorks and has been awarded BREEAM environmental certificate with an 'Excellent' rating. The transaction amounted to nearly €45 million.
Ekonip Logistics, a company specializing in logistics services for hazardous materials, has decided to lease 9,200 sqm of warehouse and office space at the Logicor logistics park in Mszczonów. AXI IMMO represented the tenant in the transaction.
Salzgitter Mannesmann Acélkereskedelmi Kft. has signed another long-term lease agreement in the ZenGarden office building in Budapest. The redesigned workspace will take up over 500 sqm in the building.
The New Balance brand has expanded the space of its showroom in Galeria Warmińska in Olsztyn, Poland. The American brand's shop currently occupies an area of almost 200 sqm.
New appointments
DLA Piper’s Prague office has appointed a Corporate partner with a focus on technology Tomáš Ščerba, Real Estate partner Michal Hink and Banking, Finance and Restructuring counsel Leo Javorek.
Following Magdalena Sekuła's resignation from the Supervisory Board of LPP, and the reduction of the number of Supervisory Board members below the statutory minimum, the Supervisory Board appointed Jagoda Piechocka as a Supervisory Board member.
Florin Suicescu has been named COO of Forty Management. With over 30 years of management experience, he has held senior positions in real estate and hotel developments.
Property Forum is a leading event hub in the CEE real estate industry with nearly 10 years of experience. We organise conferences, business breakfasts and workshops focused on real estate, in London, Vienna, Budapest, Bucharest, Bratislava and Prague, amongst other locations.
I have read the Privacy Policy of International Property Network Inc. and I consent to International Property Network Inc. sending me newsletters and managing my personal data provided for this purpose.
