The office markets of Central European capitals are growing dynamically with the number of new leases on the rise and vacancy rates hitting record lows in several cities. In light of all this it is no surprise that development activity is also heating up on the most popular markets of the region.

Continued growth in the investment attractiveness of Warsaw has resulted in high demand for modern office space and is matched by tremendous developer activity. JLL summarised the situation on the Warsaw office market at the end of Q3 2017.

One car in Warsaw carries on average 1.3 people and, according to research conducted by JLL, in the Służewiec district of Warsaw, 87% of cars are only occupied by the driver. As a consequence, finding a vacant parking space becomes a great challenge, especially when the rapid development of office districts in all of Poland's major cities are taken into account. So what can be done about this rather sorry state of affairs? Well there are a number of solutions.

Echo Investment and EPP (Echo Polska Properties) have concluded a loan agreement worth €175 million and a VAT loan of PLN 34 million with Bank Zachodni WBK S.A. as an agent as well as PKO Bank Polski S.A. and Bank Gospodarstwa Krajowego. The acquired funds will be used for the construction of Galeria Młociny in Warsaw. The loan was granted for the construction period and a five-year investment period.

In Q3 2017 gross demand on the Warsaw office market reached 198,600 sqm, which brought the 2017 YTD total to 589,500 sqm. The Polish Office Research Forum has published its figures for Q3 2017 for the office market in Warsaw.

Ghelamco has secured a €221 million loan for the construction of The Warsaw Hub from a consortium of five banks. Warsaw HUB, comprising three buildings, will have 113,000 sqm GLA of which 70,000 sqm of office space. The complex will also include retail space and a conference centre as well as two hotels. Completion is planned for 2020.

The total transaction volume on the CEE hotel investment market increased to €700 million in the first half of 2017 from the €630 million transacted in H1 2016. This represents a yearly growth of 11 percent which is significantly larger than the 0.3 percent growth registered in the western part of Europe. High yields, booming tourism and strong economic growth are the main reasons behind growing interest in the hotel markets of Central and Eastern European capitals on the behalf of international investors.

Cushman & Wakefield has been responsible for the audit of the Focus office building and obtaining a BREEAM IN-USE International certificate for the scheme. The office complex, located at 26 Ludowej Avenue in Warsaw, received an “Excellent” rating in Building Management and a “Very Good” rating in Asset Performance.

CA Immo signed and closed a sales and purchase agreement to acquire Building B of the Warsaw Spire office complex, comprising of 21,600 sqm GLA. The transaction volume of the fully rented asset amounts to around €100 million, the annual gross rental income reaches around € 6 million. With this transaction, CA Immo fulfils one of the last strategic and budgeted targets announced for 2017.

Master Management Group is planning the first European outlet centre with a village designed concept in Poland. The first phase of the project, located in Łomna near Warsaw, close to the Warsaw – Gdańsk route and Modlin Airport, will have an area of almost 19,000 sqm. The second phase will deliver a further 30,000 sqm.