Coffee with Craig Show – daily CRE news covering the CEE region, Monday, August 1, with Winston Norman, Editor and Chief of EuropaProperty.com.
Record-breaking tenant activity on Warsaw’s office market
According to JLL, the first six months of 2022 saw record tenant activity on Warsaw’s office market. During the first half of the year, as much as 479,400 sqm was leased, making it the best H1 performance for the capital city’s market.
The Warsaw office market has experienced a marked recovery in recent months. During this time many companies decided to return to the office and clarify their policies related to hybrid working. As a result, they have been able to accurately pinpoint their leasing requirements.
“In the first six months of 2022, we saw a decrease in the share of available office space in Warsaw’s total stock,” said Piotr Kaminski, Head of Office Leasing, JLL. “We have also registered a record high demand for offices, which is largely responsible for the conclusion of several significant leases.”
According to JLL, today’s office market is influenced by several factors, including low land availability and high development costs, developers adopting a more cautious strategy, and competition for plots from the PRS sector. As a result, a shortfall in new supply for the office property sector is expected in 2023.
In the first half of 2022, eight office buildings were completed in the Warsaw market, with a total area of 129,000 sqm, with as much as 85 percent being leased.
“Many small and medium-sized companies are opting for flexible solutions to wait out the lack of new supply in the market. We are seeing a gradual increase in prices, which is further influenced by the current economic situation,” comments Adam Lis, Flexible Office Solutions Manager, JLL.
Releven to pioneer 15-minute city model in Vilnius
Zabolis Partners, the veteran investment group in the New Nordic region, is bringing a sustainable vision to transforming Vilnius’ Central Business District (CBD) into a vibrant urban hub. With its real estate unit, Releven, the investment company is focusing on urban regeneration through high-quality developments in prime locations in downtown Vilnius.
Releven has acquired four prime Vilnius CBD land plots and laid out a five-year plan for the development of 200,000 sqm of premium projects. In parallel, it has begun work on a flagship residential and office mixed-use initiative.
“We are excited to begin executing on our sustainable vision, transforming our Central Business District into a 15-minute-City, combining places for living, working, services and leisure,” commented Saulius Merkys, Releven’s managing director.
Releven’s flagship project, located at Lvivo 59, is a 55,000 sqm sustainable micro-city community, adjacent to one of the capital’s central boulevards.
In light of the current record deficit of housing in Vilnius, Releven is planning the construction of up to 400 flats at the site. Up to two-thirds of the projected units are to be for rent, professionally managed by companies specialising in the private rental sector. All residential properties in this complex will become the first to be BREEAM certified as sustainable buildings.
Europa Capital and ConvergenCE commit to WiredScore certification in Hungary
WiredScore, the global certification for technology in real estate, has launched its WiredScore and SmartScore certifications in Hungary. Europa Capital and ConvergenCE are the first companies to commit to WiredScore certifications in the country. The launch comes as part of a wider expansion push across Europe, which will see WiredScore present in 27 markets.
The organisation offers two internationally recognised rating and certification systems to help owners design and promote buildings with better digital connectivity and smart technology.
Tom McClellan, Country Director, UK, Ireland and Growth Markets, WiredScore, commented: “As companies move towards a hybrid way of working, there has never been a more important time to ensure that reliable digital connectivity is at the forefront of this transition, whether that be in the office or the home.”
Lynn Smith, Managing Director, Head of Sustainability & Development of Europa Capital commented: “At Europa Capital, we are committed to creating resilience across our portfolios and aim to provide our customers with the best in-building experience.”
Csaba Zeley, Managing Director of ConvergenCE, added: “We are excited to be the first ones to acquire WiredScore’s certification in Hungary for our forthcoming office building with Europa Capital.”
CTP builds Desenio’s first tailor-made distribution centre outside the Nordics
Desenio Group has leased nearly 18,500 sqm at CTPark Bor located in western Bohemia close to the city of Pilsen and the German border. The premises will serve as the Swedish company’s first distribution hub for European markets outside the Nordic region. CTP custom-built the distribution centre for Desenio to support its European operations outside the Nordic region.
Desenio Group is a Swedish, fast-growing digital direct-to-consumer company with a leading position as an online-based provider of affordable wall art in Europe. It aims to make wall art accessible to all and is present in 35 countries globally. Last year, the group had 3.6 million active customers and in the second quarter of 2022, the company’s turnover reached €12.3 million.
Jakub Kodr, Head of Business Development at CTP in the Czech Republic, said: “To support continued growth, the Group needed to streamline their logistics and distribution channels and chose CTPark Bor as the best-in-class option for its first distribution centre outside the Nordic region.”