Coffee with Craig Show – daily CRE news covering the CEE region Wednesday, May 25 with Winston Norman, Editor and Chief of EuropaProperty.com.
The Czech industrial real estate market growing at a record pace
Colliers has released a report on the industrial market in the Czech Republic for the first quarter of 2022. The growth of the market and the recovery of industrial production has not slowed even with the current supply chain challenges. This quarter also continued to see a sharp rise in rents in almost the entire country. According to Colliers, the market will continue to grow, however, the full effects of the war in Ukraine will be felt and construction may slow down slightly.
“At the end of Q1 2022, more than 1.2 million sqm of industrial space was under construction. If no delays occur, the total Czech industrial stock could reach another milestone and hit 11 million sqm by the end of the year. Developers seem increasingly open to pursuing speculative construction, as the market can absorb almost all new development,“ explained Josef Stanko at Colliers. “However, the full effects of the current supply chain crisis and the war in Ukraine will only show later in the year and might potentially slow down the pace of construction. We will also be closely monitoring the rising costs, how they translate into the pace of rising rents, and the sensitivities of occupiers to these conditions.”
Sirin Development and Kesko Senukai agree on additional warehouse space in Latvia
Industrial real estate developer Sirin Development signed an agreement with Kesko Senukai on the lease of a 12,000 sqm warehouse. In total, the company will be leasing 20,000 sqm of warehouse space from Sirin Development at the Rumbula Logistics Park in Riga.
Sirin Development’s CEO, Laurynas Kuzavas, notes that the modern logistics centre on the right bank of the Daugava near the city centre is attracting significant attention from companies that aim to provide their customers with fast and high-quality service and optimize logistics costs.
“The strategic location near air and seaports and the city centre and competitive leasing rates are all further boosting demand at this logistics park. We plan another development phase at the park shortly and next year we will be able to offer the market 28,000 sqm of A+ class warehouse facilities,” Kuzavas said.
According to Kęstutis Statulevičius, Chief Operations Officer at Kesko Senukai Digital, this logistics centre was chosen due to its geographically convenient location when serving all three Baltic countries
“Both the convenient location and the solutions in place here enable us to put customers’ orders together quicker and hand them over to the parcel delivery services,” Kęstutis Statulevičius noted.
The logistics centre will stock and assemble not only materials for home construction and renovation, but also household appliances, furniture, fittings and decorations, electronics, leisure and other items available for purchase from online stores.
JLL instructed on Sky Tower’s retail, leisure and entertainment sections
Adventum Group has entrusted JLL advisors with the commercialisation of the retail and service section of the Sky Tower multifunctional complex in Wrocław. JLL will be responsible for the commercialisation of the retail, leisure and entertainment sections of the building with a total retail and service space of 20,000 sqm.
“Our cooperation with Adventum reflects a significant trend in the retail market, indicating a further need to transform retail facilities into meeting places with a range of amenities by extending, for example, the gastronomic, retail and service and entertainment zones,” says Agnieszka Olszewska, Senior Director, Retail Agency, JLL.
Sky Tower is Wrocław’s first skyscraper and is distinguished by both its excellent location, only 2 km away from the Market Square, as well as its eye-catching architecture.
BIMs Plus Poznań leases space at MLP Poznań West
BIMs Plus, a distributor of heating, ventilation and air-conditioning products and plumbing systems has leased more than 4,700 sqm of space at the MLP Poznań West logistics park.
“Our MLP Poznań West logistics centre is undergoing dynamic expansion. Tenants are attracted primarily by the excellent location and the use of a wide range of solutions with a positive environmental impact achieved, among others, through the use of renewable energy sources,” said Agnieszka Góźdź, Chief Development Officer at MLP Group S.A.
MLP Poznań West is MLP Group’s fastest-growing centre. More than 55,000 sqm of modern space is currently under construction. The construction work is expected to be completed in the third quarter of 2022. Ultimately, MLP Poznań West will offer approximately 150,000 sqm of warehouse and office space.
OTIS is happy to remain at CityZen
OTIS has extended its lease contract in the CityZen office building managed and operated by ConvergenCE in Budapest.
The tenant, a subsidiary of the American elevator and escalator manufacturer OTIS Elevator leased nearly 900 sqm of office space in the prominent building on Váci út.
Sándor Ványi, Acting Managing Director of OTIS, commented: “Our employees feel comfortable at CityZen, where we can also welcome our visitors in a highly prestigious environment.”
Dóra Papp-Vas, Director of Leasing at ConvergenCE, added: “Both as landlords and property managers, we strive to build long-term partnerships with our clients. For us, success means meeting their needs and ensuring their satisfaction.”
