Coffee with Craig Show – daily CRE news covering the CEE region, Monday, August 08, with Winston Norman, Editor and Chief of EuropaProperty.com.
Wood & Company acquires Green Point in Prague 5
WOOD & Company Office Sub-Fund has completed the acquisition of Green Point, a 7,500 sqm A-class, BREEAM Excellent office building located in Prague 5. Colliers, Glatzova & Co., TPA and OM Consulting advised WOOD & Company on the transaction.
Colliers will manage leasing following the acquisition. Colliers has been the exclusive leasing agent for the building since April 2020 and has completed most of the fit-out works in the building through their Design and Build a team.
Konstantin Cordery, Senior Associate at Colliers commented: “We are delighted to have advised WOOD & Company in identifying and completing the acquisition of Green Point. This transaction demonstrates that in the face of limited office product availability in Prague, investors that can adapt their strategy to embrace alternative solutions will be able to further fulfil their investment criteria and achieve their investment goals.”
Warsaw’s office market sees strong occupier activity amid falling vacancy rates
At the end of June 2022, Warsaw’s total office stock amounted to about 6.27 million sqm. Occupier activity accelerated while the vacancy rate continued its downward trend – these are some of the key findings of the MarketBeat H1 2022 report prepared by Cushman & Wakefield.
“Looking ahead, we expect the vacancy rate to continue its downward trend in the coming quarters given the recovery in occupier activity, limited new supply and a relatively high level of pre-lets in office buildings scheduled for completion in 2022,” says Jan Szulborski, Senior Consultant, Consulting & Research, Cushman & Wakefield.
Total leasing activity in Warsaw amounted to 479,400 sqm in the first half of 2022, up by 94 percent in the same period in 2021.
“We suspect that demand for office space in 2022 in Warsaw will continue its gradual upward trend relative to 2021. The downside risk to this scenario is that occupier sentiment around investment plans in Poland may change or worsen in the coming quarters due to geopolitical uncertainty and the expected shrinking office availability due to a lack of new supply,” adds Joanna Blumert, Head of Occupier Services Warsaw, Office Agency, Cushman & Wakefield.
“Looking ahead, we expect costs to continue to put upward pressure on headline rents, further fuelled by the gradually shrinking availability of office space in prime locations and buildings,” concludes Jan Szulborski.
P3 Logistic Parks increases landbank in Silesia
P3 Logistic Parks has purchased a plot of land in the Silesian region, in Dębieńsko. The site of more than 22 hectares in size will be built over with warehouses to a total area of almost 110,000 sqm. This is the fourth plot in P3’s portfolio in southern Poland, which the company has acquired in recent months.
Bartłomiej Hofman, Managing Director of P3 Logistic Parks in Poland, said: “These plots will also allow us to offer clients who want to operate in this region of Poland the highest quality facilities, which will be fully adapted to their requirements.”
It is envisaged that on the newly acquired plot, “big-box” warehouses will be constructed, comprising a total area of almost 110,000 sqm. The buildings will be certified by the BREEAM system at the “Excellent” level. Work on the site is due to start in the first quarter of 2023.
Karolina Adamczak, Senior Development Manager P3 Logistic Parks in Poland, said: “Silesia is one of the leading regions in Poland in terms of economic and demographic potential. Also, it is the second largest warehouse market in Poland and one of the most important distribution hubs in Central and Eastern Europe, which is primarily due to its well-developed infrastructure.”
Marta Kosiedowska, Partner at act BSWW legal & tax law firm, commented: “The acquisition of a plot in Silesia – a key region for logistics investments – is another well-thought-out step in P3’s development strategy.”
Markat Plus with a new distribution centre near Krakow
Markat Plus, a distributor of wood-based boards and materials, will lease more than 7,300 sqm of warehouse and office space at Panattoni Park Kraków III. The tenant was represented in the transaction by AXI IMMO.
“Due to the current market situation, we decided to let warehouse space in the Panattoni Park Kraków III distribution centre. Rising inflation, which directly impacts the increase in prices of materials and contractors, a long-term lease will be a safer option,” comments Michał Banasik, co-owner, Markat Plus.
“The Kraków warehouse market is one of those very demanding ones, in which details often determine the success of a transaction. The big advantage of our warehouse is its convenient location in terms of the A4 motorway entrance less than 3 km away, as well as the high technical standard of the property,” convinces Filip Noworól, Senior Leasing Manager, Panattoni.
