Coffee with Craig Show – daily CRE news covering the CEE region, Wednesday, February 22, with Winston Norman editor and chief of EuropaProperty.com
Czech industrial market with highest supply on record
The Czech industrial market grew at a rapid rate in 2022. Almost 1.1 million sqm of new space was added to the market, which is over 155 percent of the 5-year average annually completed space and the highest recorded figure on record. The market overtook 10 million sqm in mid-year and just failed to overtake the 11 million sqm milestone at year-end.
While much is said about new deliveries to the market and the high amount of space under construction, vacancy levels still remained extremely low throughout the year, at around 1 percent. The Czech Republic firmly remains a landlord’s market and will remain one throughout 2023.
“Over 1 million sqm are currently under construction and almost all of it is due to be delivered during 2023. This would mean that the market will overtake 11 million sqm of modern industrial space easily in H1 2023, and if all goes well, could near to break another milestone of 12 million sqm by the year-end,” says Josefína Kurfürstová, Research Analyst at Colliers.
2022 sees an uplift in office occupier activity in Poland
In 2022, the Polish office market recorded a strong performance in terms of demand for office space which came predominantly from the financial, IT and business services sectors. Meanwhile, development activity slowed down amid rising costs and the challenging economic backdrop. This will result in a ‘supply gap’ in the largest regional city office markets and Warsaw, says Cushman & Wakefield in its latest report.
After three years of turmoil, the Polish office market is now entering a period of stability.
“In 2022, the Polish office market owed its strength to transactions finalized by tenants with a long-standing presence in Poland,” says Michał Galimski, Head of Regional Markets, Cushman & Wakefield.
“The strong leasing activity in regional cities was driven by the continued expansion of the business services sector, which accounts for a substantial proportion of tenants there,” comments Katarzyna Lipka, Head of Consulting and Research, Cushman & Wakefield.
Tétris completes fit-out work for CMS in Varso Tower
The Warsaw office of CMS law firm is an example of a space of the future, designed to meet new, emerging standards on the market, both in terms of space plan and certification. CMS law firm was supported in the change process by the experienced Workplace team from JLL, and the Design and Build fit-out delivery was entrusted to Tétris.
A crucial element of the project from the perspective of the CMS law firm was the confirmation of the quality of the space with BREEAM and WELL Commercial Interior certificates, which the law firm will apply for shortly.
“In the design of the CMS office, sustainability and ensuring a healthy work environment were among the key elements,” says Pawel Pikus, Contract Director, Tétris
The CMS law firm’s office, with a total area of 7,000 sqm, occupies floors 39 through 43 – in the Varso Tower building owned by developer HB Reavis.