Mira Kantor-Pikus, Partner and Head of Equity, Debt & Structured Finance, Capital Markets, Cushman & Wakefield Poland, has become a member of the Enterprise, Management and Innovation Council of the Executive Club, a networking organisation of top management representatives of leading Polish and international firms.
Cushman & Wakefield has expanded its Project & Development Services (PDS) team, to include a new Design & Build (D&B) platform. The new European service line is headed by Glyn Evans for the CEE region, based in Prague. Andrew Frizell, Partner and Head of Project Management CEE is leading the new service line in Poland supported by Glyn Evans.
Michał Sikora, Land, Technical and Special Economic Zone Consultant, Industrial and Logistics Agency, Cushman & Wakefield: The existing set of tools used to support direct investments in Poland is changing. Going forward, this may lead to a reduction in the scale of new projects breaking ground and to changes to project management.
Global real estate services firm Cushman & Wakefield has published a summary of the first quarter of 2018 on Poland’s regional office markets in its MarketBeat report. Following the record-breaking performance in 2017, the total office stock of regional cities rose by 3% q/q by the end of Q1 2018 to 4.5 million sq m. The average vacancy rate for the regional markets was down 0.6 p.p. at 9.3%. The largest concentration of development activity is in Wrocław and Krakow. “The overall vacancy rate was pushed down by the relatively high absorption which hit 101,200 sq m in the first quarter of 2018 following the delivery of new projects, most of which had been secured with pre-lets,” said report author Jan Szulborski, Cushman & Wakefield.
Twelve markets were downgraded and the same number upgraded as Cushman & Wakefield’s quarterly European Fair Value Index – which analyses 123 European office, retail and logistics markets – reflected an overall trend of fewer attractive prime investment opportunities in Q1 2018.
Key trends impacting on the retail and warehouse market growth in 2018. Anna Oberc, Cushman & Wakefield, said:"With the changing consumer lifestyle, e-commerce has seen its sales grow for long. Shopping centres are increasingly turning from retail-only schemes into alternative leisure destinations where to enjoy free time and meet up with friends, particularly in winter time." Joanna Sinkiewicz, Cushman & Wakefield, add: "As urbanisation continues and societies age, new shopping patterns will become more firmly established with online retailing playing an increasingly important role. In addition, pressure will mount on market players to improve the quality and speed of deliveries. Online retailers are already trying to outdo one another in this respect as reliable and quick deliveries help them to stand out against competition, impacting directly on customer opinions and numbers of returning customers."
Occupier activity set an all-time high on the Polish industrial market in the first three months of 2018, which pushed the country’s vacancy rate down to its lowest on record. Demand came mostly from e-commerce (24%), logistics operators (23%) and retailers (19%). Global real estate services firm Cushman & Wakefield presents a summary of the first quarter of 2018 on the Polish warehouse and industrial market in its latest report MARKETBEAT: POLISH INDUSTRIAL MARKET. “At the end of the first quarter there was 1.91 million sq m of warehouse space under construction in 56 projects across Poland. This was the largest ever quarterly development pipeline of which nearly 75% was secured with pre-lets. The highest concentration of development activity was in Upper Silesia, Central Poland, Western Poland and Warsaw Suburbs, accounting for 64% of space under way,” said report author Adrian Semaan, Research Consultant, Industrial & Logistics Agency, Cushman & Wakefield.
The rising demand for global Higher Education continues to attract institutional capital to invest in European student accommodation with transactions up 29% year-on-year to some €13.6 billion across the continent in 2017, according to a new investment guide from Cushman & Wakefield. Mira Kantor-Pikus, Partner, Equity, Debt & Structured Finance, Capital Markets at Cushman & Wakefield, Poland: “The Polish student accommodation market as part of the private rented sector is growing rapidly. It is a very interesting sector for investors, especially in view of high numbers of foreign students in Poland who usually have problems with renting flats from private owners. Another group of tenants includes domestic students at both several private universities and public universities which do not provide enough beds in halls of residence.
The rate of shopping centre development in Europe is slowing, with completions down 23% year-on-year at 3.8 million sq m 2017, according to Cushman & Wakefield’s latest European Shopping Centres report. Małgorzata Dziubińska, Associate Director, Consulting and Research, Cushman & Wakefield, Poland comment: "Poland is a top three European country in terms of new shopping centre space supply in 2017. Although the shopping centre growth decelerated across Europe, Poland remains a hotspot for investors. The Polish retail market development is largely fuelled by the country’s strong macroeconomic fundamentals coupled with the sharp increase in consumer spending."
The sector’s strong rental growth is supported by continued positive performance across German, Nordic and Semi-core markets*, which pushed weighted growth across Europe to 0.8% quarter-on-quarter (q/q). This was more than the logistics sector (0.4% q/q) and high street retail which returned to growth with a modest 0.2% q/q.