Finance Press Release 28.06.2022

LOCONI Intermodal leases space in OKAM property in Żerań

LOCONI Intermodal leases space in OKAM property in Żerań

Finance Press Release Finance Press Release 26.05.2022 12:50
LOCONI Intermodal S.A. company has leased almost 2,000 sq m. of office and warehouse space and nearly 80,000 sq m. of space for transport on the premises of the railway cargo terminal in OKAM property located at JagielloÅ„ska Street, in Warsaw district of Å»eraÅ„. Walter Herz, leading agent for commercialization of the project, represented the owner in the lease process. LOCONI Intermodal has been operating on the Polish logistics market since 2011. The intermodal operator organizes transport of containerized cargo, using various forms of transport in the supply chain. The company has a network of handling terminals and provides regular intermodal connections between seaports and terminals in various locations. - Intermodal transport is one of the most dynamically developing branches of the logistics sector in Poland. It is a great satisfaction for us that LOCONI Intermodal, which ranks among the largest intermodal operators on our market, has chosen this Warsaw location for developing its own logistics facilities and expanding the network of serviced terminals. The smooth course of the lease process, which required careful negotiation of technical, legal and financial conditions, allowed the parties to quickly reach a compromise and conclude a contract - says Piotr SzymoÅ„ski, Director Office Agency at Walter Herz. - Recent years have shown how important efficient transport solutions are for the proper functioning of the economy. Intermodal logistics combines road, rail, sea and air transport, which enables safer and, more importantly, timely delivery of cargo. This type of transport allows not only to shorten the delivery time, but also to reduce costs. Enterprises have shown great interest in the effectiveness of transport, as well as the environmentally friendly solutions. To accommodate the growing needs of the market, we are constantly expanding the transportation network. The Warsaw cargo handling hub is an important link in our company's transport connection system - admits Dariusz Barcik, vice-president of Loconi Intermodal S.A. - Commercialization of the property in Warsaw Å»eraÅ„ is a great challenge even for such an experienced company as ours, which has been successfully investing in Poland since 2004. The implementation of plan to rebuild the area of over 60 ha and restore the reputation of the former car factory in Warsaw, which we have undertaken, will take several years. The scale of the project is so large that the preparation process for the implementation of this project itself will take several years. The complex currently offers space of various functions and an extensive logistics, warehouse and production infrastructure. Its full commercialization has already been carried out, thanks to the support and commitment of Walter Herz experts - informs Arie Koren, member of the OKAM board. OKAM property is located on the premises of a former car factory at JagielloÅ„ska Street in Warsaw. The complex, which covers an area of 62 hectares, offers office, service and warehouse space, as well as space intended for exhibition yards and parking lots. It is the only location in Warsaw with its own railway siding, enabling the creation of an intermodal terminal. Most of the space in the complex is characterized by a wide range of parameters, which creates multiple lease options for companies looking for non-standard solutions, combining warehouse, production, logistics, office and service space. On the premises of the historic factory in Å»eraÅ„, where the last car left the assembly line in 2011, there is a museum devoted to the history of the automotive industry in Poland. The location of the property provides direct access to the S8 route. About Walter Herz Walter Herz company is a leading Polish entity operating in the commercial real estate sector across the country. For ten years, the company has provided comprehensive and strategic investment consulting services for tenants, investors, and real estate owners across the country. Walter Herz experts assist investors, property owners, and tenants. They provide full service to companies from the private and public sectors. Walter Herz advisors support clients in finding and leasing space and provide consulting in implementing investment projects in the warehouse, office, retail, and hotel sectors. The company is based in Warsaw and runs regional branches in Cracow and Łódź. Walter Herz has created the Tenant Academy, the first project in Poland, which supports and educates commercial tenants from all over Poland by organizing specialized training meetings. To ensure the highest ethical level of services provided, the agency introduced the Code of Good Practice. 
Andersen in Cracow’s Fabryczna Office Park

Andersen in Cracow’s Fabryczna Office Park

Finance Press Release Finance Press Release 24.05.2022 10:53
Andersen, a global IT company, has chosen Fabryczna Office Park complex to be the headquarters of its Cracow branch in Poland. Walter Herz provided comprehensive consulting and support in the process of searching for a location Andersen company, which has been providing programming services for 15 years and running several development centers around the world, is to open a branch in Cracow in Fabryczna Office Park complex. The building is located at 18 Aleja Pokoju Street, in the central part of the city. Andersen plans to start work in the new office before the end of May, 2022. The Cracow development center will be located on almost 1 000 sq m. of space. The office space will be arranged in accordance with corporate guidelines, providing the team with a comfortable environment for work and development. Andersen’s Cracow office will include, among others, a spacious open space, a conference zone and offices reserved for on-line meetings and quiet work, as well as a game room with a leisure area. The choice of Fabryczna Office Park complex was determined by the high quality of the space offered, as well as the central location of the building, which makes it easy for all Andersen employees to reach their workplace. The company appreciated the modern architecture of the project combined with solutions reminiscent of the atmosphere of old Cracow, the location of which allows access to the Market Square within 30 minutes. - We were looking for a spacious office, which we could adapt to our corporate guidelines and internal standards. Initially, we planned to lease a smaller space, but given the rapid growth of our business, we decided to expand it. We will be reviewing development plans and responding to the growing demand in the future. We want to launch new centers in other Polish cities in the near future - says Stephanie Kolosova, Delivery Manager/Head Of Cracow Office at Andersen. - We appreciate the fruitful cooperation we have established with Walter Herz, whose actions were carefully planned and transparent when searching for a suitable location for us. The advisers showed great expertise, flexibility and a completely customer-oriented approach. Their knowledge is a guarantee of a successful project. We can recommend this partner to any company that is looking for its future headquarters - adds Stephanie Kolosova. - An in-depth and broad analysis of available office options in Cracow, as well as comprehensive advice and support in every aspect of the space lease process was important For Andersen. We were looking for a location that would allow for comfortable work and development of the current team, and at the same time leave a certain cushion that would allow us to secure further needs related to the continuous development of the company. We are very pleased that we have managed to achieve all the goals set by the client and to propose some out-of-the-box solutions that have been appreciated by the company. We are grateful for entrusting us with the entire negotiation process - says Kamil Kowalewski, Senior Negotiator at Walter Herz. - We are glad that another prestigious company operating on a global scale has joined the group of our tenants. We believe that our complex will meet all the requirements of Andersen and will become the basis for further growth of this internationally recognized organization in Poland - informs PrzemysÅ‚aw Łukasik, vice-president of Inter-Bud Group. Cushman & Wakefield company represented the landlord in the lease process. Fabryczna Office Park is an office complex that will ultimately include six A-class office buildings with a total lease area of 77.5 thousand sq m. The first stage of the investment received BREEAM Post Construction certificate rated Outstanding. The office buildings will form part of the mixed-use investment project Fabryczna City implemented by Inter-Bud company on a plot of 6.5 ha in the post-industrial area of the former State Vodka Factory in Cracow. Apart from the office buildings, the historic part of the mixed-use complex, will include a four-star Mercure hotel, a fitness center, a swimming pool, a museum, shopping and service units with restaurants, as well as residential buildings. The flagship project of the Polish investment and executive group Inter-Bud, which brings together over a dozen companies specializing in various sectors of the construction market, is located in the center of Cracow, near the two most important transport junctions in the city - Mogilskie roundabout and Grzegórzeckie roundabout. About Walter Herz Walter Herz company is a leading Polish entity operating in the commercial real estate sector across the country. For ten years, the company has provided comprehensive and strategic investment consulting services for tenants, investors, and real estate owners across the country. Walter Herz experts assist investors, property owners, and tenants. They provide full service to companies from the private and public sectors. Walter Herz advisors support clients in finding and leasing space and provide consulting in implementing investment projects in the warehouse, office, retail, and hotel sectors. Read next: Altcoins: Ripple Crypto - What Is Ripple (XRP)? Price Of XRP | FXMAG.COM The company is based in Warsaw and runs regional branches in Cracow and Łódź. Walter Herz has created the Tenant Academy, the first project in Poland, which supports and educates commercial tenants from all over Poland by organizing specialized training meetings. To ensure the highest ethical level of services provided, the agency introduced the Code of Good Practice.  Follow FXMAG.COM on Google News
BALMORAL PROPERTIES SELLS THREE OFFICE BUILDINGS OF BROWAR LUBICZ IN KRAKOW

BALMORAL PROPERTIES SELLS THREE OFFICE BUILDINGS OF BROWAR LUBICZ IN KRAKOW

Finance Press Release Finance Press Release 19.05.2022 12:20
Global real estate advisory firm Savills has advised Balmoral Properties on the disposal of three office buildings of the Browar Lubicz complex in Krakow. The new owner of the property is French-based PAREF Gestion, which acquired it on behalf of SCPI Interpierre Europe Centrale. The property is located at Lubicz Street, directly opposite Krakow Main Railway Station and Galeria Krakowska Browar Lubicz is a mixed-use development that seamlessly blends the elements of the traditional architectural design of the former brewery and a modern building. The transaction comprised three office buildings of the complex with a combined area of 7,500 sq m. The property is located at Lubicz Street, directly opposite Krakow Main Railway Station and Galeria Krakowska, just 800 metres away from Krakow’s Main Market Square. Its tenants include one of the leading app-based mobility as service provider, CentralNic, a multinational holding company providing domain name registry services, web hosting and web traffic monetization, and YGGDrasil, a Swedish provider of gaming solutions. Read next: Altcoins: What Is Monero? Explaining XMR. Untraceable Cryptocurrency!? | FXMAG.COM “Thanks to its prime location, Browar Lubicz ties in with the strategy of investment funds targeting assets close to key transport hubs. It is unique in being a human scale development and one of very few modern office buildings located so close to the historic Main Market Square and the Tower of St. Mary’s Basilica. The transaction is a confirmation of the continued trust and confidence of cross-border capital in high quality properties in Poland,” says Tomasz Buras, CEO and Head of Investment, Savills. The parties agreed not to disclose the value of the transaction. Balmoral Properties was advised on the sale of the buildings by Savills (investment and leasing support services) and Jakubaszek & Wspólnicy (legal). The new owner of the property was advised by Dentons (legal) and BNP Paribas Real Estate (technical).
(INPST) InPost’s new headquarters in Cracow | Walter Hertz

(INPST) InPost’s new headquarters in Cracow | Walter Hertz

Finance Press Release Finance Press Release 16.05.2022 11:10
InPost, the leader of the modern logistics services market in Poland, is moving its headquarters to Ocean Office Park complex in Cracow. The company has leased 8,300 sq m. of space in building B, implemented in this investment. Walter Herz company supported the company in the process of searching for a location and negotiating lease terms. Amsterdam Stock Exchange, decided to relocate the office to the Cavatina investment located at Pana Tadeusza Street in the Zablocie district of Cracow The international company listed on EURONEXT – Amsterdam Stock Exchange, decided to relocate the office to the Cavatina investment located at Pana Tadeusza Street in the Zablocie district of Cracow, with a view to create the best conditions for the development of the organization and to provide the team with comfortable working conditions in a modern environment. Read next: Altcoins: What Is Polkadot (DOT)? Cross-Chain Transfers Of Any Type Of Asset Or Data. A Deeper Look Into Polkadot Protocol | FXMAG.COM - Changing the headquarters is aimed at meeting our current expectations in terms of the quality of office space, as well as the needs related to the intense growth of the organization. We chose Ocean Office Park because it offers the highest standard of office space and common areas, which ensures comfort and safety at work. Attractive architectural and technical solutions that distinguish this project were the main aspects that determined the choice of location. Green areas and recreational zones arranged within the complex were also of great importance - says Marcin Pulchny, Vice President of the Management Board of InPost. - Environmental protection and ESG policy is of great importance to us. The company was listed first in the Electromobility-Friendly Companies 2022 ranking. It is important for us to achieve synergy, combining corporate governance and natural and social environment. All employees working in the complex will have access to parcel lockers, the most eco-friendly for of delivery for on-line shopping, located on the OOP premises. - adds Marcin Pulchny. It is a great satisfaction for us that InPost has once more benefited from the experience of our team specializing in servicing the office sector - informs BartÅ‚omiej Zagrodnik, Managing Partner/CEO at Walter Herz - We are very pleased that once again, we had the opportunity to support InPost in the search for space. This time, our task was to carry out the relocation process of the company's headquarters, including financial, legal and technical negotiations. We advised the company on various levels, both in terms of searching for offices and space for logistics activities, which is related to the expansion of the e-commerce delivery platform throughout Poland. InPost, as one of the largest logistics operators in Poland, is also one of the most active entities on the logistics space market. It is a great satisfaction for us that InPost has once more benefited from the experience of our team specializing in servicing the office sector - informs BartÅ‚omiej Zagrodnik, Managing Partner/CEO at Walter Herz. Read next: (TRX) TRON USD Decentralised Blockchain Platform That Focuses On Entertainment And Content Sharing. Altcoins: A Deep Look Into The TRON Network | FXMAG.COM InPost enjoys a leading position on the logistics market in Poland. The operator has created the first in the country network of parcel lockers, self-service points of sending and receiving parcels, open 24/7. The company has been present on the market for 22 years and has almost 17 thousand parcel lockers that form the largest business structure of this type on our market. Moreover, the application used to operate the lockers, has over 9 million users. - Searching for a new office for InPost, it was crucial to provide the company with optimal development opportunities within the selected building and to protect the client against an increase in construction costs. Comprehensive services related to the relocation also included securing the tenant's interests when it comes to Project Management, and above all Cost Management. The basis for choosing Ocean Office Park was a very good relation of the quality and technical standard of the offered space in relation to the financial conditions and the location of the facility in the vicinity of key transport hubs in the city - informs Mateusz Strzelecki, Head of Tenant Representation / Partner at Walter Herz. - Ocean Office Park is our third office project that we are implementing in Cracow. The confirmation of the success of this project, in which we commissioned the first office building, is among others, the main Prime Property Prize in the category of Investment of the Year in the Office Space Market, which it has recently won. So far, we have completed six office buildings on the Cracow market. In addition to building A in the Ocean Office Park investment, our portfolio of completed projects includes four office buildings in the Equal Business Park complex located at Wielicka Street and Tischnera Office project. We are happy that InPost is relocating its headquarters to our newest investment in Cracow. We plan to complete the construction of the second office building in the Zablocie district before the end of the year and we hope that the tenants will move into the offices at the beginning of next year – says Natalia JagliÅ„ska, Leasing Director, Cavatina Holding. Cavatina Capital Group is a leader on the Polish real estate market, it has a portfolio of mixed-use properties with a total of 0.5 million sq m. The company independently manages all key investment processes. About Walter Herz Walter Herz company is a leading Polish entity operating in the commercial real estate sector across the country. For ten years, the company has provided comprehensive and strategic investment consulting services for tenants, investors, and real estate owners across the country. Walter Herz experts assist investors, property owners, and tenants. They provide full service to companies from the private and public sectors. Walter Herz advisors support clients in finding and leasing space and provide consulting in implementing investment projects in the warehouse, office, retail, and hotel sectors. The company is based in Warsaw and runs regional branches in Cracow and Łódź. Walter Herz has created the Tenant Academy, the first project in Poland, which supports and educates commercial tenants from all over Poland by organizing specialized training meetings. To ensure the highest ethical level of services provided, the agency introduced the Code of Good Practice. 
Warehouses are at a premium

Warehouses are at a premium

Finance Press Release Finance Press Release 08.04.2022 12:31
The record demand for warehouse space, reported last year, continues. There are no vacant warehouses, despite the fact that the largest amount of logistics space in the history of our market is currently under construction in our country - In the warehouse sector, we have been looking at high activity of developers for several years. The motivation for investors to act is the constantly growing absorption of the Polish market. Last year, tenants leased a record number of 7.4 million sq m. of warehouse spaces. The demand increased by over 40 per cent, compared to the previous year. The sector is growing at a pace we have never seen before. The annual market growth exceeded 15 per cent. As much as 4.7 million sq m. of warehouse space remains in the country. In the EU, only Germany is building more warehouses than in Poland - says BartÅ‚omiej Zagrodnik, Managing Partner / CEO at Walter Herz. - The lack of immediately available warehouses means the growing pressure to increase rents. Already at the end of 2021, we could see a slight increase in the initial rental rates, generated by the rising costs of building projects. Opportunities for an increase in profitability in the warehouse segment in Poland are also created by the need to start new logistics destinations in our region in connection with relocating business from the conflict zones. Investors leaving Russia may also generate demand here – explains BartÅ‚omiej Zagrodnik. - Our Land Development service is becoming more and more popular. Through it, we search for plots and comprehensively prepare land for warehouse and production investments for our clients. We obtain planning permissions, make arrangements, analyze the efficiency of plots, make design preparations for exits/entrances, etc., providing investors with a comprehensive service and the most optimal solutions - adds BartÅ‚omiej Zagrodnik. - Last year, several large lease transactions for over 100 thousand sq m. of space were recorded in the warehouse segment. The sector also turned out to be the star of the investment market, reporting a record result in this field as well. Warehouse properties accounted for more than half of the volume of investment transactions worth EUR 5.9 billion registered in Poland. Nearly EUR 3 billion was allocated to the warehouse sector, which means an increase of 8 per cent y / y - informs Piotr SzymoÅ„ski, Director Office Agency at Walter Herz. Despite the global turmoil, Poland maintains its position of a mature market that has to offer good-class real estate at relatively lower prices compared to Western Europe, ensuring attractive returns on investment compared to other countries. - Capitalization rates for warehouse properties in the regional markets in Poland reach 5.0-5.5 per cent, and in the Warsaw region around 4.0-4.3 per cent. The confirmation of the continuing good economic conditions may be, among others, more spectacular transactions recently concluded in the commercial sector, including the purchase of The Warsaw HUB complex in Warsaw, Sky Tower in Wroclaw, and a plot of land at Towarowa 22 in Warsaw, intended for a mixed-use property - says Piotr SzymoÅ„ski At the end of 2021, domestic warehouse resources amounted to 23.8 million sq m. of space. Last year, according to Walter Herz, developers delivered over 3 million sq m. of warehouses to the market. The situation in the sector is conducive to the construction of new properties, at least half of which are carried out on a speculative basis. More than half of the warehouse and industrial space that make up the warehouse resources in Poland has been built in the last five years. The largest warehouse market remains the Masovian province, where nearly a quarter of the domestic supply is concentrated, followed by the Silesian, Lodz, Lower Silesian and Greater Poland provinces. In the remaining provinces, the warehouse facilities do not exceed 1 million sq m. of space. Last year, the largest amount of space was added in the following provinces: Silesian (620 thousand sq m.), Masovian (425 thousand sq m) and Lubusz (415 thousand sq m). The largest number of warehouses is currently under construction in the Lodz, Lower Silesian and Silesian provinces. The largest amount of warehouse space remains under construction since 2015. In 2021, 2.2 million sq m. more space was leased by tenants than in the previous year. The largest number of contracted warehouses was in the following provinces: Masovian (1.3 million sq m.), Silesian (1.2 million sq m.), Greater Poland (1.1 million sq m.) and Lower Silesian (1 million sq m.). The extremely high demand for warehouses was balanced by the high volume of new supply and additionally contributed to the reduction of the vacancy rate to over 3 per cent nationwide. Asking rents in Big Box warehouse facilities are currently between EUR 2.75 and EUR 4.5 / sq m. / month. Rental rates in city last mile or SBU warehouses remain at EUR 4 / sq m. / month, and in some large cities they can even reach EUR 6 / sq m. / month. About Walter Herz Walter Herz company is a leading Polish entity which has been operating in the commercial real estate sector across the country. For ten years, the company has been providing comprehensive and strategic investment consulting services for tenants, investors and real estate owners across the country. Walter Herz experts assist investors, property owners and tenants. They provide full service, to companies from the private as well as public sectors. Walter Herz advisors support clients in finding and leasing space, and provide consulting in the implementation of investment projects in the warehouse, office, retail and hotel sectors. The company is based in Warsaw and runs regional branches in Cracow and Łódź. Walter Herz has created the Tenant Academy, the first project in Poland, which supports and educates commercial tenants from all over Poland by organizing specialized training meetings. In order to ensure the highest ethical level of services provided, the agency introduced the Code of Good Practice.
Retail parks are a top investment

Walter Herz supports companies from Ukraine

Finance Press Release Finance Press Release 01.04.2022 11:40
Walter Herz consulting company together with partners has created an initiative of free assistance providing business, investment, legal and HR consulting for companies relocating their operations from Ukraine to Poland, thanks to a specially created project and platform The authors of the project explain that the motivation to take the initiative was the willingness to help Ukrainian companies that were forced to evacuate from their country and relocate their business as a result of the Russian invasion. - There are still few long-term concepts related to substantive support for investors from Ukraine, which is why we have developed a project thanks to which we will be able to help Ukrainian entrepreneurs in the long term for the benefit of our economy. Through the platform that we have just launched, we can offer free consulting to companies that move to Poland from danger zones. Investors from Ukraine do not know how to navigate in the reality of our business environment, which is why our project includes comprehensive consulting. We provide information on company registration, tax law, labor law, recruitment and lease costs, as well as help finding office and warehouse space - informs BartÅ‚omiej Zagrodnik, Managing Partner, CEO of Walter Herz. Page Group, a recruitment company with a global reach, and LSW LeÅ›nodorski Åšlusarek i Wspólnicy law firm are partners of the aid project created by Walter Herz. Such collaboration opens up more opportunities. Companies from Ukraine can count on comprehensive information and service. - Polish Investment and Trade Agency and local investor service departments operating at city offices have also joined our project. This gives us the possibility of broader investment consulting, based not only on commercial opportunities of our market, but also based on specific business development options in selected locations, offered by local governments, which also includes exemptions offered to investors - says BartÅ‚omiej Zagrodnik. Walter Herz company is constantly looking for new opportunities to increase the scale of assistance, primarily by expanding cooperation with partners. The initiative has already been supported by several entities, joined by other companies determined to provide free assistance to investors from Ukraine. For entrepreneurs relocating business from Ukraine to our market, Walter Herz consultants provide knowledge on the general economic situation in our country, the potential of individual market sectors in given locations, the labor market, as well as the regulations on running a business. - The information provided to Ukrainian companies concerns the costs of running a business in Poland, including space lease, company registration and employment. Together with our partners, we conduct videoconferences, during which we provide practical tips on the current conditions of local markets in our country. We recommend optimal solutions in specific cases. We share the information included in our reports and help create comparative analysis of various locations that investors are interested in - informs Mateusz Strzelecki, Head of Tenant Representation / Partner at Walter Herz. Mateusz Strzelecki notes that a large group of entrepreneurs from Ukraine who are using our consulting are technology and IT companies employing at least several dozen people. - The first choice for them is Warsaw and Cracow. They also decide to go to Wroclaw or the Tri-City. First of all, they are initially interested in leasing coworking space in a given city and the aspects of the process of starting a business in Poland - adds Mateusz Strzelecki. According to Magdalena Zagrodnik, Head of HR & Marketing, Partner at Walter Herz, refugee migrations have a positive effect on the labor market in the long run. - This has already been confirmed many times by surveys carried out in various countries that dealt with the phenomenon of high migration. Unfortunately, the current statistics show that a large number of entities from Ukraine, after a short stay in Poland, leave our country and move further, to Western Europe. Therefore, we must undertake the widest possible efforts to ensure that Ukrainian brands permanently move to us and have a real, positive impact on our economy, and not only treat Poland as a stop on the way to another country - says Magdalena Zagrodnik. - I would also like to add that, as part of the aid project, we have created a division to which we invite various organizations supporting units helping Ukrainian children, such as kindergartens, language schools or psychological clinics etc. We hope that with the participation of our partners, we will be able to offer truly comprehensive support - says Magdalena Zagrodnik.   About Walter Herz Walter Herz company is a leading Polish entity which has been operating in the commercial real estate sector across the country. For ten years, the company has been providing comprehensive and strategic investment consulting services for tenants, investors and real estate owners across the country. Walter Herz experts assist investors, property owners and tenants. They provide full service, to companies from the private as well as public sectors. Walter Herz advisors support clients in finding and leasing space, and provide consulting in the implementation of investment projects in the warehouse, office, retail and hotel sectors. The company is based in Warsaw and runs regional branches in Cracow and Łódź. Walter Herz has created the Tenant Academy, the first project in Poland, which supports and educates commercial tenants from all over Poland by organizing specialized training meetings. In order to ensure the highest ethical level of services provided, the agency introduced the Code of Good Practice.
SAVILLS: STRONG Q1 EXPECTED FOR EUROPEAN REAL ESTATE INVESTMENT DESPITE GEOPOLITICAL EVENTS

SAVILLS: STRONG Q1 EXPECTED FOR EUROPEAN REAL ESTATE INVESTMENT DESPITE GEOPOLITICAL EVENTS

Finance Press Release Finance Press Release 21.03.2022 11:27
  Preliminary figures compiled by Savills suggest that the total real estate investment volume in Europe for the first quarter of the year will reach approximately €70bn, a 19.5% increase year-on-year. Despite geopolitical events, the real estate advisor expects solid European investment activity for the remainder of the year, notably fuelled by large portfolio and entity deals. Savills anticipates total European real estate investment volumes for 2022 to reach between €300bn and €330bn, which would be 5-10% above the five-year average, as long as the Russia/Ukraine crisis doesn’t last too long and doesn’t have a long-term impact on the European economy. Lydia Brissy, Director, European Research at Savills, says: “Given the current context, we expect most of the investment activity this year will focus on Western Europe and particularly, the core countries of UK, Germany and France. Our preliminary Q1 figures suggest that those three countries have received 66.6% of the total European investment volume this quarter, up from 61.4% last year.” Tomasz Buras, CEO, Savills Poland, says: “The hostilities in Ukraine are having a stronger impact on the Polish real estate market than on Western European markets. Developers are facing severe disruptions to supplies of building materials and reduced availability of construction workers. Tenants have already suffered from rising inflation and energy charges, further fuelled by the weakening Polish zÅ‚oty relative to the euro, a currency in which rents are denominated. We are, however, seeing a surge in demand on the residential rental market and more enquiries for office and warehouse space from companies wanting or forced to relocate operations to Poland. Cross-border investors are likely to remain more cautious in the coming weeks, leading to a short-term dip in real estate investment volumes, albeit with a potential for a strong rebound if the armed conflict is quickly resolved peacefully.” James Burke, Director, Regional Investment Advisory EMEA at Savills, says: “For perhaps the first time since the Covid-19 pandemic, prime offices are looking like an increasingly attractive defensive investment as they are relatively protected from higher inflation due to the indexation of rents across core European cities. Based on our preliminary figures, prime office yields compressed further by an average of 17 bps year on year to 3.40% in Q1 2022. Office yield spreads to risk-free rates continue to illustrate the sector’s attractiveness despite some more recent increases in bond yields. Given this, we believe the potential for further yield compression is less likely, and we forecast a stable outlook on pricing throughout 2022.”
The office market is getting back on track

The office market is getting back on track

Finance Press Release Finance Press Release 17.03.2022 12:26
There are still fewer leased and built offices than two years ago, but there is an upward trend in the office sector. Last year, some regional markets saw a sizable increase in demand, even compared to 2019 In 2021, 325 thousand sq m of office space was delivered on the Warsaw market. Such a high result was last seen in 2016. Several spectacular buildings, the implementation of which began before the pandemic, have been commissioned. Skyliner, Warsaw Unit, Generation Park Y and Fabryka Norblina have been completed in the vicinity of DaszyÅ„skiego roundabout. The construction of X20 building and Moje Miejsce II in the district of Mokotów have been completed. Warsaw office resources, which already exceed 6.15 million sq m. have also gained two office buildings in Centrum Praskie Koneser complex, as well as the EQ2 building and Baletowa Business Park. Warsaw with a negligible amount of new projects On the other hand, there is over a half less offices under construction in Warsaw than in recent years, when about 700-800 thousand sq m. of space was commissioned annually. According to Walter Herz, almost 330 thousand sq m. of offices is currently under construction. The last time there has been so little of them built in the city was a decade ago. Most of the projects will be completed this and next year. The office buildings under construction include, among others, Varso Tower, SkySawa, The Bridge, P180 and Bohema. The high level of new supply in 2021 and lower demand caused the vacancy rate to increase in the Warsaw market by 2.8 pp. to 12.7 per cent and become the highest in six years. - The activity of tenants in the office market is still lower than before the pandemic, but its gradual increase is noticeable. The total volume of lease in the office sector in Poland in 2021 was several percent higher than in the previous year. In Warsaw, the volume of lease transactions increased by over 7% year on year. Over 646 thousand sq m. of space has been leased. This result is significantly lower than in 2015-2019, when tenants leased an average of about 830 thousand sq m. of offices - says BartÅ‚omiej Zagrodnik, Managing Partner/CEO of Walter Herz. - However, offices still remain an important element of companies' business activities and interesting assets for investors. So far, rental rates are at the same level as before, but a significant increase in construction costs is putting pressure to increase them – adds BartÅ‚omiej Zagrodnik. The Tri-City with the largest number of new offices In the regions, the highest increase in resources was recorded in the Tri-City. The offer of the Tri-City office market, which is the fourth in the country, will soon reach 1 million sq m. of space, due to the completion of construction of 73 thousand sq m. of offices in 3T Office Park, Palio, LPP Fashion Lab and Gato projects. Cracow, the second largest office market in Poland, increased its offer last year to over 1.6 million sq m. of space. The supply increased by over 60 thousand sq m. of space, due to the completion of Equal Business Park D, Ocean Office Park A, Tertium Business Park B and Aleja Pokoju 81. Over 37 thousand sq m. of offices has been delivered to the office market in Poznan in Nowy Rynek D building. As a result, the resources exceeded 620 thousand sq m. of space. In Wroclaw, Krakowska 35 and Nowa Strzegomska projects were commissioned, offering a total of 22 thousand sq m. of space. As a result, the offer increased to 1.25 million sq m. In Katowice (600 thousand sq m.), over 13 thousand sq m. of space entered the market last year, and in Lodz (583 thousand sq m.) - 3.6 thousand sq m. Katowice market with the largest development Katowice clearly stands out in the regions with the number of offices under construction. There are as many as 200 thousand sq m. of space under construction on the Katowice market, which accounts for nearly a third of the city's current resources. Most of the projects are to be completed this year. The Cracow market is also growing, with 165 thousand sq m. of office space under construction. - If the macroeconomic conditions and the economic situation are favorable, this value may increase in the upcoming quarters with projects that are being prepared for implementation in Cracow - says Mateusz Strzelecki, Head of Tenant Representation/Partner at Walter Herz. - Another office market that is also expanding is Wroclaw with 150 thousand sq m. of space under construction, among others in the Brama OÅ‚awska project, Quorum Office Park and another building in the Centrum PoÅ‚udnie and Tri-City complex with 120 thousand sq m. of offices that are implemented mainly in Gdansk - informs Mateusz Strzelecki. Nearly 80 thousand sq m. of office space is under construction in Poznan and almost 90 thousand sq m. of offices in Lodz. The largest investment on the Poznan market is Andersia Silver, which upon completion will deliver the tallest building in the city. In the near future, Lodz will offer modern space in Manufaktura Widzewska, Fuzja and React projects. Demand in the regions is at a fair level According to Walter Herz, the lease level in regional markets was over a dozen per cent lower last year than in 2019. - While the office sector has seen a significant recovery in the second half of 2021, the annual transaction value is still below the pre-pandemic average. However, the high demand for offices registered last year in Wroclaw, the Tri-City and Poznan, where more space was contracted than in 2019 is noteworthy - says Mateusz Strzelecki. Last year, we could observe the greatest demand for offices in Cracow, where approximately 156 thousand sq m. of space was leased and in Wroclaw, which showed absorption at the level of 153 thousand sq m. While the demand on the Cracow market was slightly lower than in the previous years, in Wroclaw the result was several per cent higher, both in comparison to 2020 and 2019. The Tri-City and Poznan markets also showed an increase in demand last year. The rental volume in the Tri-City amounted to 108 thousand sq m. of office space and was 23 per cent higher than the year before, and nearly 7 per cent higher than in 2019. Poznan, on the other hand, where lease agreements for 73 thousand sq m of offices were signed, recorded over 80 per cent increase in demand for offices, compared to 2019. The demand on the Katowice market dropped to 53 thousand sq m. of space, that’s 16 per cent lower than a year earlier. In Lodz, 51 thousand sq m. of offices were contracted, which is also less than in previous years. Over the last year, the vacancy rate in regional markets increased slightly. Only in Poznan, due to the jump in demand, it slightly decreased. It is currently at the level of 10.5 per cent in Katowice to 16.7 per cent in Wroclaw. Experts point out that the model of arranging office space is changing. More rooms for meetings and videoconferences are now being designed. A larger number of desks also function as workstations, which, depending on the needs, can be used by various people in the hybrid system. About Walter Herz Walter Herz company is a leading Polish entity which has been operating in the commercial real estate sector across the country. For ten years, the company has been providing comprehensive and strategic investment consulting services for tenants, investors and real estate owners across the country. Walter Herz experts assist investors, property owners and tenants. They provide full service, to companies from the private as well as public sectors. Walter Herz advisors support clients in finding and leasing space, and provide consulting in the implementation of investment projects in the warehouse, office, retail and hotel sectors. The company is based in Warsaw and runs regional branches in Cracow and Łódź. Walter Herz has created the Tenant Academy, the first project in Poland, which supports and educates commercial tenants from all over Poland by organizing specialized training meetings. In order to ensure the highest ethical level of services provided, the agency introduced the Code of Good Practice.

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