Europe’s commercial real estate markets maintained their positive trend across most markets and property types during the fourth quarter of 2018, according to Cushman & Wakefield’s latest DNA of Real Estate report. Jakub Budych, Senior Consultant, Capital Markets, Cushman & Wakefield Poland, added: “Real estate yields continued to move in across Europe throughout 2018, with the strongest downward movement among the three core sectors in logistics – down by nearly 47bps to the average of 5.71%. This trend continued in the CEE region, albeit at a slower rate. Average industrial yields in the region currently stand at 6.77% and are likely to harden further."
New retail supply amounted to approximately 420,000 sq m in 2018, pushing Poland’s total retail stock up by 3% to 14.7 million sq m. Nearly 30% of the new supply was completed in small-scale shopping centres and retail parks (sized below 20,000 sq m). Extensions of existing shopping centres and retail parks delivered approximately 60,000 sq m of new retail space. Global real estate services firm Cushman & Wakefield presents a summary of the Polish retail market in 2018.
Global real estate services firm Cushman & Wakefield presents a summary of 2018 on the Warsaw office market. At the end of 2018, Warsaw’s total office stock stood at 5.46 million sq m. Despite last year’s supply gap, which is expected to carry into 2019, new supply totalled 232,700 sq m delivered across 20 office projects, down by 70,000 sq m on the five-year average for 2012–2017. Last year’s largest completions on the Warsaw market included Proximo II (19,950 sq m), Equator IV (19,200 sq m) and Centrum Biurowe Koneser (17,300 sq m).
Cushman & Wakefield has released a new report which identifies the important new transportation corridors which will emerge between now and 2030 to support the evolution of the European logistics industry. Joanna Sinkiewicz, Partner, Head of the Industrial and Logistics Agency, Cushman & Wakefield: “Cushman & Wakefield’s latest publication focuses on an analysis of EMEA transportation corridors and their development prospects in the coming years. Increasing freight volumes, rising costs, road congestion and labour shortages are key factors driving change in addition to the growth of e-commerce and new technologies. Further development of the Central Europe corridor and the Baltic corridor is particularly interesting from our perspective. Further significant infrastructure investment is necessary, but Poland – benefiting from its favourable location in the central part of the continent, its competitive labour market and a large consumer market – will remain an important link in the European distribution network.
The Polish commercial real estate market is in the best shape it has ever been, posting a record-high investment volume that exceeded EUR 7 billion in 2018. Office and industrial sectors, in particular, are setting new highs with last year’s trading volumes at nearly EUR 2.6 billion and nearly EUR 1.9 billion, respectively.
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.