Office Agency at Avison Young in Poland welcomes new person in a team - Kamila Oleksiak

Office Agency at Avison Young in Poland welcomes new person in a team - Kamila Oleksiak

Finance Press Release Finance Press Release 03.01.2023 14:17
  Kamila Oleksiak takes the role of Senior Property Broker in Office Agency at Avison Young, where she will be supporting tenants in renegotiation processes of the leasing agreements as well as leasing new office space. Kamila has been active on the commercial property market for 5 years. She started gaining her experience in the retail sector, supporting tenants in matters related to leasing contracts. For the last several years she has been operating in the office market only, both in Warsaw and Poland’s regional cities. She cooperated with such renowned clients as – among others - OTCF, ING Bank ÅšlÄ…ski, CCC, Martes Sport, Rossmann, Euronet, Pepco, Anegis, Grafotronic and BDO. Avison Young launched Office Agency business line in October 2022, by acquiring team of market professionals. At Avison Young Kamila will re-join Robert Pastuszka, Dominik Pawlak, PrzemysÅ‚aw UrbaÅ„ski and Maksymilian Sobczak – team of colleagues with whom she has worked before at Nuvalu Polska. In Office Agency Kamila will be also cooperating with Marta SypiaÅ„ska. Avison Young Avison Young creates real economic, social and environmental value as a global real estate advisor, powered by people. Headquartered in Toronto, Canada, Avison Young is a collaborative firm owned and operated by its principals. In the Central Eastern Europe and South Eastern Europe the firm is operating in Bulgaria, Czech Republic, Hungary, Poland, Slovakia and Romania, offering a broad range of consultancy services. In the Polish commercial real estate market, Avison Young is providing professional consultancy services such as office agency, investment advisory, valuation consultancy, technical advisory and project management.
Sweden: real estate prices drop is outstanding. According to Knight Frank, year-on-year decreases get global

Sweden: real estate prices drop is outstanding. According to Knight Frank, year-on-year decreases get global

Pawel Zapolski Pawel Zapolski 02.01.2023 13:18
House and apartment prices in Sweden have already fallen by almost a fifth since the price peak in Q1 2022. And this may not be the end of this deep correction, economists warn. Meanwhile, globally, in real terms, after accounting for inflation, houses have already started to get cheaper year-on-year. House prices in Sweden have fallen by -17% since the spring peak, according to data from the state-owned mortgage bank SBAB. The launch of cycles of interest rate increases by central banks caused downward trends in real estate prices not only in this Scandinavian country, but they are most visible there. Read next: Twitter Did Not Pay $136,260 Rent, Microsoft Reported Its Worst Quarterly Results In Years| FXMAG.COM Swedish houses are getting cheaper in the eyes The forecast of the economists of the Swedish central bank assumed that as a result of the cycle of rate increases, the prices of Swedish houses and flats could fall by -20%. These assumptions as to the depth of the correction have already been almost fulfilled, and the end of the monetary policy tightening cycle in developed countries is not yet in sight. Property prices have also been falling for months in markets such as Canada, Australia and New Zealand. However, in no country have they gone down as much as in Sweden. Several factors contribute to this. This is not only about the rising cost of money and credit, but also about the deteriorating condition of the Swedish economy and prospects, and the increasingly worse social climate for living in a country with the capital in Stockholm. In December 2022, real estate prices in Sweden fell by -2% m/m. In November they fell by -2.2% m/m, and in October by -2.3% m/m. “If we see an increase in unemployment, it will be important that mortgage payments do not increase. If there is a simultaneous increase in the unemployment rate and an increase in the main interest rate, the situation will become difficult, both for borrowers and for the real estate market,” said SBAB chief economist Robert Boije . Prices of detached houses have fallen by -19% since the spring peak. Housing prices went down by -14%. Experts explain that houses are cheaper than flats because they are more energy-intensive, i.e. they generate higher electricity bills, which is not welcomed by the owners with the current increases in electricity prices. Read next: Croatia introduces Euro – what are experts' approaches?| FXMAG.COM Sweden House Price Index Source: Trading Economics Global home prices are falling after inflation What is the situation with house and apartment prices around the globe? According to the Knight Frank Global House Price Index, house prices in 56 countries continue to grow at an annual rate of 8%, although they have fallen from a peak of 10.9% reached in Q1 2022. However, in real terms, taking inflation into account, house prices are falling by -0.3% y/y. Despite this, in nominal terms, 48 of the 56 countries see price increases on an annual basis. Real estate prices are growing the fastest in Turkey (189% y/y in the third quarter), but to a large extent this growth is driven by very high inflation (the price growth rate after taking into account inflation is 58%). Real estate markets with the largest drop in prices since the peak in Q1 2022 Source: Knight Frank Source: Knight Frank
Lending rates remind of the property crisis. Building permits ca. 50% higher than in 2008

Lending rates remind of the property crisis. Building permits ca. 50% higher than in 2008

Conotoxia Comments Conotoxia Comments 30.12.2022 14:54
In October, the reading of the US Home Purchase Contract Signings Index fell 4% month-on-month to 73.9 points, the second lowest reading in the past 20 years. This represents a 37.8% year-on-year decline in the number of homes sold. At the same time, the Case Shiller Home Price Index (CSHPI) increased by 8.6% year-on-year. Average interest rates on 30-year mortgages have doubled since the beginning of the year to 6.3%. Could there be a collapse in this market and would it be a bigger crisis than in 2008? 2008 is still a long way off... The financial crisis of 2008 was one of the biggest financial crises in the history of the current century. It had its origins in late 2007, when problems began to emerge in the US real estate market. Many banks and investment companies invested in financial instruments based on property prices. When property prices began to fall by up to more than 10% year-on-year, these instruments lost value, resulting in losses for many financial institutions. The first victim of the crisis was Lehman Brothers, which declared bankruptcy on 15 September 2008. This caused panic in the financial markets and put many other financial institutions in trouble. In response to the crisis, governments and central banks around the world took action to protect financial institutions and stabilise markets. In many countries, assistance programmes were introduced to help companies and individuals affected by the crisis. The largest cycle of printing and cheap money in US history was also launched. At present, lending rates are at the level of the property crisis. The downward trend in building permits for new homes may also seem worrying, but here the value is nearly 50% higher than in 2008. The situation for the moment seems to be saved by average property prices, which are currently rising by 14.7% year on year. Unfortunately, the pessimistic attitude of consumers and businesses towards the coming months and the drastically declining demand may have led, among other things, to a more than 30% drop in the iShares Mortgage Real Estate ETF (REM) giving exposure to broad real estate companies. Source: Conotoxia MT5, REM, Daily Are we in for a real estate slump? The mortgage debt service payment as a percentage of disposable personal income in the USA currently stands at 3.9% and the total debt in relation to disposable income at 9.7%. These values are among the lowest in 50 years. By comparison, the same parameters in 2008 were 7.1% and 13.1%. This means that it now costs the average US citizen almost twice as much to pay a mortgage installment in relation to their earnings. It should also be taken into account that most home loans are taken out at a fixed interest rate, so that their drastic increase over the past months wouldn’t necessarily lead to a repayment problem. For this reason, an investment in the iShares Residential and Multisector Real Estate ETF (REZ) seems relatively safe. It is a passive fund that invests in real estate companies involved in residential and commercial rental and property management. It has historically performed better than the broad property market. Nevertheless, we may currently see a discount of 30% on it. Source: Conotoxia MT5, REZ, Daily   Grzegorz Dróżdż, Junior Market Analyst of Conotoxia Ltd. (Conotoxia investment service) Materials, analysis and opinions contained, referenced or provided herein are intended solely for informational and educational purposes. Personal opinion of the author does not represent and should not be constructed as a statement or an investment advice made by Conotoxia Ltd. All indiscriminate reliance on illustrative or informational materials may lead to losses. Past performance is not a reliable indicator of future results. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75,21% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Confidential tenant in Blue Office

Confidential tenant in Blue Office

Finance Press Release Finance Press Release 21.12.2022 10:16
Confidential tenant has leased over 800 sq m. of space in the office building within the Blue City complex, situated at Aleje Jerozolimskie street. The company plans to open a new office on January 9, 2023. Walter Herz provided comprehensive consulting in the lease process. The new VFS Global visa center is scheduled to open on January 9th, 2023. It is dedicated primarily to cooperation between the Canadian government and individuals arriving to Poland from Ukraine. – For the company, we were looking for space with the capacity to serve a large group of customers in a layout corresponding to a passport office. Negotiations quickly brought the intended result, which satisfied both sides. The new tenant will generate additional traffic in the Blue City shopping center at the level of about 1 000 people a day, thanks to the nature of its operations. The opening of a branch of the state-owned PaÅ„stwowe PrzedsiÄ™biorstwo Dokument company in Blue Office also allowed us to develop mutual benefits. We provided support in the lease process of that company last summer - says Konrad RadliÅ„ski, advisor at Walter Herz. The Blue Office building provides a friendly working environment thanks to its location in the immediate vicinity of the Blue City mall, which is one of the largest shopping centers in Warsaw. The technologically advanced office building offers 32 thousand sq m. of modern space. A special recreation zone with natural vegetation and a chillout room equipped with many interesting amenities are at tenants’ disposal. Residents and guests can use free parking and bicycle infrastructure, as well as space for organizing corporate events. Blue Office users are provided with a full range of attractive services, access to many restaurants, cafes, fitness club, cinema, medical center and shops, supermarket, banks, post office, as well as entertainment establishments. 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. The agency introduced the Code of Good Practice to ensure the highest ethical level of services.
The year of prudent investments is coming

The year of prudent investments is coming

Finance Press Release Finance Press Release 21.12.2022 10:05
Taking into account the mood and current investment activity, it would seem that the recession on global markets is only just developing. A clear slowdown in the real estate transactions has been visible since mid 2022. Several factors contributed to it, including increase in interest rates, uncertainty related to the geopolitical situation, war in Ukraine, games between the USA, Taiwan and China, as well as the instability of government and economy in Great Britain and economic problems in China. As a result, most investors, especially those who have adopted the principles of a limited risk policy, reduced their purchasing plans in Poland. Investors who are still active expect attractive prices now, while sellers are not yet ready for corrections. The widespread uncertainty observed in the markets means that investors often focus their attention on projects based around basic needs, focusing on residential real estate and convenience retail projects. These two types of assets are on the radar of a growing number of investors, as they are considered the safest. Looking on the activities undertaken on the investment market from the perspective of the end of 2022, it seems that these segments will be even more popular in 2023, provided that the costs and strategies of financing investment projects adopted by banks do not prevent it. Warehouse assets will continue to attract a lot of interest in 2023. However, investors will pay more attention to the quality of the location and the structure of tenants. Real estate acquisitions in this sector will be increasingly well-thought-out. Rising financing costs, unstable construction costs and pressure from investors to discount existing warehouse properties will affect the investment land market. Only well-prepared land, secured by lease agreements, will have a chance to be the subject of transaction. This year, there is no pressure from landowners to raise prices. Sellers who show a unique lack of price flexibility in the face of a dynamically changing economic situation, in many cases, have to put their offers back on the market. A trend that can be noticed and will become stronger in 2023 and in the following years will be the growing demand for brownfield land in the largest agglomerations, i.e. Warsaw, Tri-City, Wroclaw, Cracow and Poznan. Which is naturally related to the continuous development of last mile logistics and the e-commerce market. It should be noted that in many cases investments in attractive brownfield projects may turn out to be a better solution than the purchase of undeveloped, though serviced plots. I would also like to point out that resilience and sustainability are now extremely important topics that are often raised during talks with foreign entities investing in real estate. Energy efficiency, green solutions and ecological materials are aspects that at large extent affect the conclusion of transactions. A technical audit that would indicate a lower than expected level of the project in this respect, may lead to the suspension of negotiations. Author MichaÅ‚ ĆwikliÅ„ski, Principal, Managing Director – Poland at Avison Young
Offices are getting more and more expensive and there is no shortage of demand

Office market at a turning point

Finance Press Release Finance Press Release 16.12.2022 15:32
In 2023, offices will be more expensive, and their availability in the top locations of the largest cities will be lower Increases in office lease costs, limited availability of space in high-standard buildings located in central business areas and the low level of new supply are the main indicators that will affect the situation in the sector in 2023. The last three years have brought many changes to the office market. The system of work and the way of arranging space have changed. The process of rapid development of the office market over the years has been halted. The growing costs of construction and project financing make it difficult for investors to estimate the final amount of the construction budget, and therefore they are postponing the start of construction of new investments. New supply is dropping hard In regional markets, 30 per cent less office space is emerging than before the pandemic, while five times less offices is being built in Warsaw than three years ago. The availability of prime space on the Warsaw market is declining. The effect of limited, new supply with demand remaining at a lower than in 2019, but stable level is a slight increase in rental rates. This applies in particular to high-class office buildings located in the center and in business zones, situated outside the very center of Warsaw, but also the best real estate on the largest regional office markets in the country. The new office offer is modest. In Warsaw in the third quarter of this year, most of the space was provided by Varso Tower, which including the spire, is the tallest building in the European Union, offering almost 64 thousand sq m. of space. The largest amount of office space in the country is under construction in the capital of Lower Silesia. Investments underway in this city include Infinity (22 thousand sq m.) and Centrum PoÅ‚udnie III (20 thousand sq m.). Among the properties under construction in Cracow, there are Ocean Office Park B (26.5 thousand sq m.) and Kreo (24 thousand sq m.), while Andersia Silver (40 thousand sq m.) and Nowy Rynek E (20 thousand sq m.) are under construction in Poznan. Rental costs go up We have a record-breaking inflation, and forecasts indicate that it will continue to grow, which translates into the cost of office lease. The main challenge in 2023 will be maintenance charges. Due to inflation, rising costs of energy and expected increases in the minimum wage, they expect to increase. This will translate into the amount of advances on maintenance charges. In addition, utility prices will increase. Nowadays, the effective process of leasing an office and negotiating contract terms, as well as cooperation with professional advisors on the commercial real estate market, will become all the more important, because the provisions included in contracts should protect tenants in more difficult times. Negotiating optimal business and legal terms will require much more time and commitment. A new analysis and rental process should be started at least 2 years before the end of the ongoing contract. It will give more time to negotiate all items at every stage of operations and a chance for significant cost optimization. A five-year lease agreement currently does not give a chance to develop a move-in ready office without additional surcharges for the tenant. Prices of finishing works increased on average by 30 per cent. Tenants must take into account the fact that in the case of demanding projects, additional payments for interior design will be necessary. In order to compensate landlords for the increase in the cost of fit- out and lower the charges for tenants, longer, seven-year contracts are now concluded more often. Read next: In December, the Fed maintained a tougher rhetoric than the market consensus, playing on the bears' side| FXMAG.COM Negotiating lease terms Therefore, when negotiating contracts, attention should be paid to the amount of the budget for fit-out, rent exemptions and mechanisms for limiting or controlling the amount of maintenance charges contained in the contract. Negotiating terms of lease agreements is, contrary to popular belief, a large field. One can negotiate, among others: contractual penalties, grounds for termination of the contract, the right to sublet and assign, the amount of maintenance charges, break option, and liability. We always advise our clients to attach the final cost estimate to the Lease Agreement, in order to avoid additional charges for fit-out later. Speaking of the current market, one cannot fail to mention the work system and functions of today's offices. It should be noted that the goal today is not just renting and arranging space, but creating a place that will be conducive to rebuilding contacts with colleagues, building bonds and improving communication in the company, which will translate into increased satisfaction from work. Most employers are facing the new preferences of their employees, who are reluctant to return to their offices. Despite most companies determining the proportions of remote work, which most often falls within the range of 2 or 3 days a week (on average 40-60% of working time), office attendance oscillates around 30 per cent. Hybrid mode shapes workplaces In the near future, the offices will function as creative, cross-functional, training centers. Their main function will be the exchange of ideas, knowledge and building relationships and social capital. The purpose of re-arranging offices and adapting them to this role is to create an atmosphere of the place that will attract its employees. In order to adapt workplaces to the hybrid mode, companies are currently reducing the number of desks in favor of collaborative spaces. They are switching to solutions using flexible workstations, which forces sharing. They are introducing clean desk policy. Lockers are also becoming available in the offices, ensuring a quiet, isolated space. Office space is arranged in such a way that it is as flexible and functional as possible. The offices used serve largely as space for guests and external contractors, now they primarily serve the team. Their space is supposed to activate employees and provide them with tools not available at home. Great emphasis is now placed on modern conference zones that support hybrid meetings, creative and social spaces, such as a large kitchens with dining rooms for employee integration. Often this part is extended into a chillout zone or places for less formal meetings. Mateusz Strzelecki, Partner, Head of Tenant Representation at Walter Herz 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. The agency introduced the Code of Good Practice to ensure the highest ethical level of services.
Land investment market in Poland. Predictions for 2023

Land investment market in Poland. Predictions for 2023

Finance Press Release Finance Press Release 15.12.2022 12:25
  From the warehouse developers perspective, 2023 will be marked by very well-thought-out purchases. With the costs of financing constantly rising, construction costs changing, and investors pressing for discounts on the existing warehouse market, the land market will be the first to feel this accumulated pressure. Only well-prepared land with lease agreements signed by tenants has a chance to be the subject of a transaction, and not just a non-binding option from developers regarding the purchase of land. Over the last 10 months, the pressure from the owners to raise prices has definitely decreased. Those owners who did not show understanding towards the dynamically changing economic situation and represented the strategy of price inflexibility will, in many cases, have to be back on the market with their land. A noticeable change will also be visible in the approach of sellers to land security options. Many owners, tempted by high land valuations, did not care enough about the rights to permits and decisions for their land. Such permits do not pass automatically to the owner, but to the developer applying for them. As a rule, so far this has been justified in a situation where in most cases a final agreement was reached. Currently, when developers resign from purchasing part of secured land, the owners find out that all permits are the property of the buyer and the process of obtaining, for example, a building permit should be started from scratch at their own expense. Undoubtedly in 2023, owners will be more prudent about the option of securing land, placing much greater emphasis on having rights to processed permits. In terms of demand for prime land, the top 5 logistics hubs will continue to be the most liquid market. On the other hand, there is a noticeable growing demand for land along the western border and a slightly lower demand in the eastern part of the country – despite the impressive development of road infrastructure. A strengthening trend in 2023 and in subsequent years, will be the growing demand for brownfield land in the largest urban agglomerations, headed by Warsaw, Tri-City, Wroclaw, Cracow and Poznan. This, of course, is related to the development of last-mile logistics and the demand for smaller warehouse modules with office space. In many cases, the best brownfield projects may turn out to be a better solution than looking for an empty, undeveloped, but at the same time properly serviced plot. To sum up, in 2023 we do not expect any new records to be broken on the logistics land market, although it will continue to be an active segment of the market. Author: BartÅ‚omiej Krzyżak, Senior Director, Investment at Avison Young
Retail parks number of deals concluded in Poland’s real estate market is growing

Retail parks number of deals concluded in Poland’s real estate market is growing

Finance Press Release Finance Press Release 13.12.2022 13:19
FULL VERSION OF THE REPORT Retail parks number of deals concluded in Poland’s real estate market is growing Retail property investment market sector in Poland is thriving, thanks to the stable growth of retail parks (above 5,000 sqm GLA) and convenience retail (retail parks under 5,000 sqm GLA) schemes. Since 2016, 160 assets of this type have been finalized. – Convenience schemes still dominate the retail market in Poland. The most desirable properties are those which accommodate discounters and "value retailers", which are thriving nowadays, when buyers often limit their purchases and pay more attention to prices. Ballooning inflation reflected in a decrease of the purchasing power of buyers and deterioration of consumer sentiment will paradoxically work in favour of convenience schemes characterised by the basic discount offer. – comments MichaÅ‚ ĆwikliÅ„ski, Principal, Managing Director - Poland at Avison Young. Generous yields In Q1-Q3 2022 period, retail investment volume amounted to 20% of the total investment volume transacted in Poland. Compared to 2020 and 2021, it may look like a slight rebound. However, bearing in mind that ¾ of this volume was the result of EPP JV’s established in Q1 2022, the real outlook looks less abundant. – Prime yields in Poland are on -a growing trend. The yield gap between prime retail parks (6.8 percent) and prime warehouse (5 percent) and office properties (4.7 percent) exceeds 180 bps, which is an exceptional result compared to the capital cities of Western Europe. Retail parks’ yields in Poland are still very attractive. In the CEE markets, also Hungary (7 percent) and Romania (7 – 7.25 percent) offer very generous yields in this recession-resilient sector. – comments Michal Ćwiklinski. However, Avison Young expects further yield compression due to the lack of product and high interest in retail parks and convenience retail assets. Number of transactions is breaking records In 2016‑2019, investment volume transacted within the analysed sector did not exceed 10 percent on average in the total retail investment volume. 2020 doubled this number (over 20 percent), because many other investments were put on hold due to the pandemic. 2021 resulted in 12 percent share (€117 m) and Q1-Q3 2022 period - 15 percent (€127 m). Number of transactions in this sector breaks records. High liquidity accompanied by the lower volume reflects the investors’ turn to small retail parks and convenience schemes, including those located in smaller cities and towns. In Q1-Q3 2022 period, 17 out of 26 transactions recorded in the retail sector were due to retail parks and convenience retail, which was the highest share since the beginning of the market. Seeking new developments The market growth dynamic is relatively slow, because the majority of investors are long‑term holders. Therefore, investment volume depends mainly on developers and newly-delivered assets. In Q1-Q3 2022, 40% of transacted schemes were new developments (under 2 years on the market). More newcomers The sector continuously attracts investors. So far, 2022 welcomed two newcomers, namely Lords LB and LEOFF Group who acquired two prime properties in WrocÅ‚aw and Opole. By the end of the year, we expect the debuts of three newcomers to the Polish investment market from France, Israel and Czech Republic attracted by the retail park product. Investment market in the analysed sector has been shaped by two major players during last two years, who were responsible for 36% of transacted volume in 2021 - Q1-Q3 2022 period. In terms of capital origins, last two year years were dominated by Germany (€76 mln in total) and UK (€54 mln in total). Other groups, two-times smaller in terms of invested capital, were Western Europe countries, USA, CEE countries, Israel, but also Poland. What influences retail park’s value – The prices and estimated values of retail parks depend particularly on the tenant mix, including the presence of a grocery store, run by well-known operators. The highest prices and thus the lowest yields are observed for facilities with a WAULT of more than 7 years and food anchors at over 15 years. Depending on several market factors and the property’s specification, prices range from EUR 800 to EUR 2,000 / sqm of leasable area. The most common rates of return are in the range of 7.00% - 8.50%. – comments Monika Bronicka, Director, Head of Valuation and Advisory at Avison Young. The biggest properties transacted this year were Power Park Opole (20,700 sqm), Franowo Retail Park in Poznan (15,900 sqm), and MÅ‚yn Retail Park in WrocÅ‚aw (10,600 thousand sq m.). Everyday shopping – stable trend – Quick, everyday and convenient shopping in the neighbourhood or on the way home is what customers are looking for. Thus, convenience retail parks are continuously developing, exploring also retail markets in small cities. The convenience retail park tenant mix is usually composed of the discount food operator, drugstore, basic services and „value retailers”. New player here is German chained value retailer Woolworth, who at the beginning of 2023 will enter Polish market by opening first two stores in retail parks located in Kraków and Łódź, with expansion plans of over 400 locations.What is interesting, incomparably lower operating costs and rental rates attract fast fashion brands to expand outside shopping centres and allocate their stores in smaller schemes. – comments Artur Czuba, Associate Director, Investment at Avison Young. E-commerce does not always work – The off-price and frequently changing offer encourage clients to spontaneous visits. One of the most popular value retailers, Pepco, redrew from the online sales after just one trial year. Off-price offer, which is the core of the chain’s business, resulted in the relatively low average ticket prevented the company from building profitable online sales – customers preferred to visit the stationary store rather than pay for delivery costs. – explains Artur Czuba. Transactions’ polarisation Retail parks and convenience retail transactions continued to sharply polarise between major agglomerations and small cities below 50,000 residents, which are bigger in number. The vast majority of schemes was transacted in small cities and in key metropolitan areas (including the city and neighbouring municipalities). The bigger city, excluding agglomeration markets, the lower number of transacted convenience retail schemes. Such distribution of investment transactions in analysed retail segment reflects on the one hand investors’ appetite for assets in prime locations, and on the other hand intensive development of convenience retail properties in smaller cities, which attract customers from the surrounding area.

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