Coffee with Craig Show – daily CRE news covering the CEE region, Wednesday, March 8, with Winston Norman, Editor and Chief of EuropaProperty.com.
CEE commercial real estate investment volume hits €10.7 billion
According to Cushman & Wakefield, 2022 witnessed a recovery in commercial real estate investment activity in CEE, with the year closing marginally up compared to the previous year. Total investment volumes in Central and Eastern Europe came in at €10.7 billion, up by 6.6 percent year-on-year. With more than €5.7 billion worth of deals, Poland continued to lead the way across the region.
In 2022, buyers’ interest focused mostly on offices, particularly in Poland and Romania, which accounted for the highest investment volume in this market segment. Meanwhile, the industrial sector experienced a slight fallback, especially in the year’s second half. This was partly due to a lack of products in the Czech Republic and investors having to adapt to a higher interest rate environment and anticipating rental growth in Poland.
“Last year also saw a gradual expansion of interest towards retail assets, including shopping centres. However, the most consistent demand was reported for retail warehouses due to the unwavering popularity of e-commerce”, comments Jeff Alson, International Partner, Poland & CEE Capital Markets, Cushman & Wakefield.
Accor to open a new Mercure hotel in Bucharest
Accor announced it will open a new Mercure hotel in Bucharest, in the fall of 2023. The hotel will operate in a fully refurbished building close to Unirii Square and the Old City Centre.
“Over the past years, we committed to growing Accor’s presence in new destinations across Romania, thus bringing new hospitality standards and services to key cities of our country. Nonetheless, Bucharest remains a key market in our portfolio,” says Maria Drăgulin, Accor Development Director for Romania, Bulgaria, Moldova and the Czech Republic.
CTP starts construction of second logistics development in Austria
Burgeoning demand for modern and sustainable logistics space in Austria has driven the full leasing of CTPark Vienna East, covering about 51,000 sqm of gross lettable area (GLA). Construction work has meanwhile kicked off at the company’s second project in the country, the 84,000 sqm CTPark St. Pölten North located around 75 km to the west of the Austrian capital.
Daniel Pfeiffer, Senior Business Development Manager at CTP Austria, said: “The rapid growth of CTP’s business in Austria within a short timeframe, confirms our calculations that the market was previously underserviced for modern sustainable logistics space.”
CTP’s second Austrian development, now underway at CTPark St. Pölten North, is located north of the major western A1 and S33 corridor connecting Vienna, Linz and Germany and 12 km from the town of St. Pölten in northeast Austria. The park is also within easy reach of Vienna Airport, the Czech Republic, Slovakia and Hungary. CTPark St. Pölten North is scheduled to have its first space availabilities in Q3 2023.
Salad Story comes to Warsaw Distribution Center
Salad Story, the largest healthy restaurant chain in Poland, has leased warehouse and office space in the Warsaw Distribution Center. The tenant was represented during the negotiation process by Newmark Polska.
Salad Story has grown to become the largest healthy fast-food restaurant chain in Poland. “The Warsaw Distribution Center was chosen for both its location and the size of the leased unit, providing our client with the best possible springboard for further growth,” says Agnieszka Marczak, Senior Advisor, Newmark Polska.
“The prime location and the size of the building were the key drivers behind our decision to begin negotiations and to sign the lease finally,” says Łukasz Jędral, Procurement and Logistics Manager, Salad Story.