Coffee with Craig Show – daily CRE news covering the CEE region, Tuesday, June 13, with Winston Norman, Editor and Chief of EuropaProperty.com.
Poland’s new warehouse supply hits an all-time high in Q1
Warehouse deliveries in Poland reached a historic high in the first quarter of the year, reveals the latest report from Cushman & Wakefield. Despite occupier activity remaining on a downward trend, Poland is still one of the fastest-growing warehouse and logistics markets in Europe.
Q1 2023 total take-up reached 1.2 million sqm, continuing the downward trend in occupier activity – when compared with the quarterly average in 2021-2022 (1.7 million sqm). Nevertheless, it remains slightly above the average of 1.1 million sqm recorded in 2019-2020.
“Poland remains one of the fastest-growing logistics markets, with leading developers continuing to deliver. This suggests investors’ strong faith in further long-term growth, driven by the continued expansion of e-commerce and manufacturing. Some manufacturers are already relocating part of their operations to Poland to shorten and secure supply chains in Europe,” comments Damian Kołata, Partner at Cushman & Wakefield.
MLP Group starts speculative construction in Romania
MLP Group has just launched a project to expand the MLP Bucharest West logistics park. The new 16,000 sqm building is being developed on a speculative basis and is scheduled for completion by the year’s end.
“Bucharest is Romania’s most attractive region and its main industrial hub. Even amid the economic uncertainty, demand for industrial and logistics space remains fairly robust,” said Olga Melihov, Country Head of Romania, MLP Group.
Tenant demand for warehouse space is driven mainly by the trend of nearshoring, continued demand for e-commerce and the need to restructure supply chains.
International businesses are struggling to manage the complexity of the workplace post-covid, according to Knight Frank & Cresa.
The report lays bare the practical challenges employers face in implementing a post-pandemic workplace strategy that meets a growing list of corporate requirements. As many as 60 percent of respondents expect the complexity of managing their workplace strategy to increase or greatly increase in the next three years.
Dr Lee Elliott, Global Head of Occupier Research at Knight Frank, said: “The vast majority are opting for a hybrid or ‘office first’ approach, bringing them much closer to how many corporates were viewing their future needs before the pandemic. Firms are looking to work their offices harder, but still offer some flexibility to staff.”
Tim Armstrong, Global Head of Occupier Strategy and Solutions at Knight Frank, said: “For most occupiers, an office-centric approach in a more flexible environment will require a fundamental reworking of the workplace, and many occupiers will conclude that their current office buildings cannot meet their requirements.”
Eversheds Sutherland relocates to Widok Towers
The Polish office of Eversheds Sutherland, a global law firm, will occupy the 18th and part of the 17th floor of the Widok Towers office building, located in the heart of Warsaw. Eversheds Sutherland’s Polish team will move at the turn of July and August 2023.
“With a view to the continued growth of our business, we were looking for a larger workspace that would also meet current office market trends. We believe that Widok Towers future proofs us for subsequent social changes and continued growth,” comments Ewa Łachowska-Brol, Managing Partner at Eversheds Sutherland Poland.
“In choosing Widok Towers for its new location, Eversheds Sutherland is proof that more and more companies are paying closer attention to sustainability and energy efficiency. What’s more, Widok Towers provides an excellent recruitment tool to attract top talent,” comments Johannes Bauer, Head of S+B Poland.