CEE hotel sector continues to boom, with investment levels expected to exceed EUR 800m by year end 2018. This marks a slight decline compared to the last year volumes. The primary reason for that is the lack of prime assets and portfolios on the market that could satisfy investors’ongoing appetite for hotels in the key CEE cities. Institutional and listed investors are becoming more dominant, accounting for 74% of total transaction volume in 2017 and 54% in the first three quarters of 2018. The changing consumer trends and evolution of accommodation concepts over the recent years have resulted in a blurring of lines between traditional hotel classes. These are the findings of the first edition of the joint Cushman & Wakefield – CMS report on the hotel Investment scene in CEE and its underlying investment trends.
The CEE investment market is still very attractive to institutional investors, a shortage of prime product being the biggest challenge. According to Cushman & Wakefield, commercial real estate in the first three quarters of 2018 the total investment volume in six CEE countries (Poland, the Czech Republic, Slovakia, Hungary, Romania and Russia) reached EUR 8.9bn. Investment activity in Poland exceeded the value recorded for the whole of 2017 and is expected to reach a record high of EUR 6bn by the year’s end. Sustainable and solid performance was recorded in Hungary and Slovakia with volumes hitting those in 2017, whereas Russia, the Czech Republic and Romania are expected to close the year at lower investment volumes, slightly below the 2017 levels.
Since 2016, global real estate services firm Cushman & Wakefield has - in conjunction with CoreNet Global - surveyed global CRE (Corporate Real Estate) executives across a variety of industry sectors focusing on their key office location strategies and decision drivers worldwide. “Our survey results show that after years of cost focus, Corporate Real Estate strategies are increasingly driven by HR issues and challenges. A location now needs to be aligned with all operational and business objectives, support innovation and help a company stand out against competition,” says Magdalena Stańczuk, Workplace Strategy, Cushman & Wakefield.
A fleeting trend or a well-thought-out strategy? Global real estate services firm Cushman & Wakefield presents a report on the use of commercial buildings’ rooftops. “Sky-high premises or interestingly arranged terraces are likely to become cult places and benefit both the entire building and all its tenants. Such space needs, however, to be appropriately designed in order to fully unlock its unique potential. A beautiful view should complement the whole and enhance the distinctive character of the space,” says Małgorzata Dziubińska, Associate Director, Consulting and Research, Cushman & Wakefield.
For the first time in five years, Hong Kong’s Causeway Bay has replaced New York’s Upper 5th Avenue as the world’s most expensive retail street by rental value, according to data from Cushman & Wakefield. The annual ‘Main Streets Across the World’ report, now in its 30th year, tracks 446 of the top retail streets around the globe, ranking them by their prime rental value according to Cushman & Wakefield’s proprietary data, which includes a list of the most expensive streets in 65 countries.
Global real estate services firm Cushman & Wakefield presents a summary of the third quarter of 2018 on the Polish regional office markets in its latest report MARKETBEAT – REGIONAL OFFICE MARKETS IN Q3 2018. There is a notable trend towards decentralisation in the business services sector, leading to increased leasing activity in smaller cities such as Rzeszów, Bydgoszcz, Toruń, Gliwice and Częstochowa, which saw new lease transactions in Q3 2018. Net absorption in the first three quarters of 2018 hit 400,000 sq m, up by more than 22% on the same period in 2017. The relatively high absorption rate is largely due to delivery of office space pre-let in 2017.
The growth in new European shopping centre space has started to slow, as mature European markets begin to reach the peak of space required, according to the latest research from Cushman & Wakefield. Małgorzata Dziubińska, Associate Director, Consulting and Research, Cushman & Wakefield, said: “Given the shopping centre development pipeline scheduled for delivery by year-end 2018, this year’s supply of new schemes is likely to hit the highest volume in the last three years. With its strong economy, driven largely by high household consumption expenditures, Poland remains a very attractive market to both investors and leading iconic brands."
Global real estate services firm Cushman & Wakefield presents a summary of Q3 2018 on the Warsaw office market in its report MARKETBEAT - WARSAW OFFICE MARKET IN Q3 2018. 1. In the first three quarters of 2018, the total investment volume on the Warsaw office market hit EUR 1.14bn, which represented a threefold increase on the same period in 2017. 2. 17% of office space in the pipeline and scheduled for delivery by 2020 has already been secured with pre-lets. 3. WeWork becomes the leading co-working provider in Warsaw following two new leases signed for office space in the western building of the Mennica Legacy Tower and at Europejski Offices. It has already secured a total of 28,500 sq m in four locations. The official opening of its first office at CEDET is scheduled for late 2018. 4. In the first three quarters of 2018, absorption of office space exceeded the new supply.
The Polish retail market maintains its momentum despite the partial Sunday trading ban. This year’s supply is expected to hit approximately 490,000 sq m, the highest annual level in the last three years. Of that total, 52% will be delivered in cities a population of more than 400,000 while 42% will be handed over in cities with a population of less than 100,000, says global real estate services Cushman & Wakefield in its latest report MARKETBEAT POLISH RETAIL MARKET IN Q3 2018. 1. Retail assets accounted for nearly 45% of the total investment volume recorded in the first three quarters of 2018 2. 42% of the retail space to be completed by year-end 2018 will open in cities with fewer than 100,000 inhabitants 3. Five new brands entered the Polish market in Q3 2018: San Marina, Ximi Vogue, Kocca, Saffiano and Armani Exchange 4. During the first six months of the Sunday trading restrictions in force, average shopping centre footfall was down by 6.6% and turnover fell by 3.0%
Despite geopolitical uncertainty and a slowing in the economic cycle, investment in the global property market has seen a significant rise of 18% year-on-year to a new record high of $1.8tn (2017: $1.5tn), according to research out today from Cushman & Wakefield.