Sorry, the publication can not be displayed.

It might be because:

The use of JavaScript is turned off in the browser.
JavaScript is needed in order to display the content of this page.

Adobe Flash needs to be installed or updated –
Please click on the box below for installation.
Get Adobe Flash player

Commercial Real Estate News Volume 4 No 4 (37) April 2010 Central Europe boosts industrial real estate market Central Europe continues to play a significant role on the industrial real estate map, and despite the rebalancing of the global economy, the market saw a number of major transactions; last year, around 1.5 million sqm of modern industrial space was let in the Central European region. The fi gure is comparable with that of France, which saw 1.6 million sqm of take up last year, and is considered to be the largest industrial real estate market in Europe. In comparison with previous years, supply in Western Europe is very low, and the same applies to take-up. Although both the building and leasing activity in Central Europe has decreased, the 2009 year performance was the third best over the past decade. The region still possesses advantages: a cheaper educated labour force, a favourable position in close proximity to Western Europe, as well as the populations relatively high purchasing power, commented Ferdinand Hlobil, Head of the Central European Industrial Team at Cushman & Wakefield. In addition, compared to Western Europe, Central Europe has immense potential for consumption growth, which further enhances the industrial real estate sector. Logistics, warehouse and industrial parks are an absolute necessity for companies in order to satisfy the everyday consumption of the population, Hlobil added. The volume of leased industrial space has constantly grown over the last ten years, peaking in 2008 when almost 2.8 million sqm was leased. Last year, take-up decreased to approximately 1.5 million sqm. The most significant tenant interest was recorded in Poland and the Czech Republic. In Poland in comparison with other Central European countries domestic small and medium-size businesses have a much greater economic power. And this applies both to the manufacturers and the retailers. The Czech Republic, on the other hand, is largely linked to the foreign investment. In response to the economic crisis, foreign manufacturing companies have ceased their expansions abroad, and the Czech Republic was the fi rst country in the Central European region, back in 2008, to feel the lower interest in industrial space. Other Central European countries only recorded a decline in demand last year, Ferdinand Hlobil pointed out. The volume of new construction in 2009 was down by 35 percent compared to 2008 levels. In total, 1.6 million sqm of modern industrial space was built last year in the four Central European countries, down from almost 2.5 million sqm in 2008. Elsewhere in Central Europe, in Slovakia, new construction almost ground to a halt last year, while in Hungary it dropped by half. In Poland and the Czech Republic, new construction decreased year on year by approximately a third. Currently built accommodation across the Central European region has an average vacancy rate of 16 percent. The lowest vacancy rate is in Slovakia (7 per- cent), the highest in Hungary (19 percent). The balanced state is about 10 percent of vacant space available for lease. When the rate of non-leased space is lower than ten percent, in some areas there is no vacant space available for lease and potential tenants thus have nothing to choose from. Such a situation motivates developers to launch again building activity, Ferdinand Hlobil said. The good news for the market is that in the last quarter of the past year the vacancy rate began to decrease. Th is means that vacant space found tenants. Th is trend indicates that this year we could reach the acceptable rate of approximately 12 percent, Hlobil added. Standard rents in prime locations throughout the Central European region are approximately 3.5 per sqm month. At the beginning of 2009, rents in locations with high vacancy saw a downward correction of approximately 10-20 percent. At the end of last year, upward pressure on prices began in locations with a low vacancy rate, and during the course of 2010, this may be reflected with slight increases in rental prices in strong locations with the highest demand. Today, there is a total of approximately 12 million sqm of modern industrial space in the Central European region. 24 Today, there is approximately 12 million sqm of modern industrial space in CEE Investors continue to target core Central European markets and Moscow The Central & Eastern European (CEE) commercial real estate investment market recorded a provisional 275 million turnover in the first two months of 2010, according to the most recent research by CB Richard Ellis. This is down from the strong finish to 2009 in the final quarter, but turnover in these two months was ca. 70 percent higher than H1 2009 two-month average turnover. Additionally, the amount of product currently under negotiation suggests that the CEE investment market is maintaining much of the momentum it gained in late 2009. Investors are targeting the same CEE markets in 2010 that they did in 2009. Almost 90 percent of turnover so far in 2010 has occurred in Warsaw, Budapest, Prague and Moscow. Institutional investors have continued to focus primarily on Central European capital city markets, which they perceive as offering reasonable income security. In fact, an increasing number of investors are classifying Poland and the Czech Republic as core markets to which they allocate funds, suggesting that these countries are overcoming the traditional east-west divide in Europe. Stuart Bloomfield, Head of Capital Markets in CBREs Prague offi ce, said: The slight decrease in turnover in the fi rst two months as opposed to the fi nal quarter is a typi- cal market trend with Q4 usually being the most active quarter for obvious reasons. The important difference is the 70 percent increase over H1 2009 figures. We have already seen several large deals in Prague, Warsaw and Budapest showing that investor appetite has returned in a significant way for the core CEE capital cities. We expect this trend to continue throughout 2010 with transaction volume once again weighted towards the end of the year. OFFICE SPACE LISTINGS IN POLAND see inside! April 2010 Volume 4 No 4 (37) Monthly News Published by NEWS Poland well positioned to thrive Poland took centre stage for the first time at this years international real estate fair MIPIM. As a result, the country witnessed many events arranged for partic Commercial Real Estate News Volume 4 No 4 (37) April 2010 Salans advises Bonduelle Group in connection with its investments in Ukraine Salans has acted as a legal advisor in Ukraine to Bonduelle Group, in relation to its investment in the construction of a factory producing canned and frozen vegetab Commercial Real Estate News Volume 4 No 4 (37) April 2010 European housing showing signs of recovery Signs of recovery are visible in some European housing markets, especially in sales levels and prices, says the latest RICS European Housing Review. A significant number of European residential marke Commercial Real Estate News Volume 4 No 4 (37) April 2010 ProLogis leases nearly 70,000 sqm of distribution space in Central Europe ProLogis has announced that it has signed five new lease agreements in Central Europe, covering 68,800 sqm. Three lease agreements were signed in Poland, the first with Commercial Real Estate News Volume 4 No 4 (37) April 2010 Poland is well positioned to thrive after growth in 2009 say market professionals at EuropaPropertys Poland Breakfast Forum Poland took centre stage for the first time at this years international real estate fair MIPIM. As a result, the count Commercial Real Estate News Volume 4 No 4 (37) April 2010 The panel agreed that retail will be the strongest sector because the yields are so attractive. Retail has been holding up pretty well and that is coming across in our valuations, Chris Grzesik explained Going into more detail on why to inves Europaproperty.com provides comprehensive and up-to- date news, information and analysis on commercial real estate markets and related businesses. Through our printed and electronic publications, conferences and awards events we cover the whole of Central and Eastern Europe, Russia and the CIS. Subs Commercial Real Estate News Volume 4 No 4 (37) April 2010 FINANCE FOCUS Hypo Real Invest acquires Vyšehrad Victoria offi ce building in Prague Skanska Property Czech Republic is divesting its offi ce project, Vyšehrad Victoria, in Prague to HRI Immobilienfonds, of the Austrian Hypo Real Invest AG, f Commercial Real Estate News Volume 4 No 4 (37) April 2010 FINANCE FOCUS Corio acquires 1.3 billion Multi shopping centre portfolio Corio has purchased a 1.3 billion shopping centre portfolio from Multi. This ranks as one of the largest European retail portfolio transactions recorded to date. Corio w Commercial Real Estate News Volume 4 No 4 (37) April 2010 RETAIL FOCUS Galeria Kaskada GTC and Polnord join forces on retail project in Warsaw Globe Trade Centre S.A. (GTC) and Polnord S.A. (Polnord) have signed a term sheet of a joint venture for the development of a modern shopping centre on a 7 h Commercial Real Estate News Volume 4 No 4 (37) April 2010 RETAIL FOCUS The awards were witnessed by 450 top industry professionals CEE RETAIL A W ARDS Pawel Debowski, Clifford Chance Martin Erbe, WestImmo Daniel Harris, MGPA and the region as a whole, is very much an active market and one that we ho Commercial Real Estate News Volume 4 No 4 (37) April 2010 RETAIL FOCUS of the Year award. Chapman Taylor picked up Architectural Firm of the Year, Clifford Chance was awarded Law Firm of the Year and First Title took home the Professional Service Provider of the Year award. AWARD WINNERS Commercial Real Estate News Volume 4 No 4 (37) April 2010 RETAIL FOCUS TriGranit share holders inspect Arenas construction progress IKEA s Port Lodz Arena Centar works ahead of schedule A delegation of TriGranit shareholders and executive management recently visited Zagreb to inspect the constructio Commercial Real Estate News Volume 4 No 4 (37) April 2010 RETAIL FOCUS Korczowa Dolina Serdika Center Korczowa Dolina offers new commercial venue for trading with Ukraine The investors of Korczowa Dolina Distribution Centre have recently received a building permit to construct the distribution centr Commercial Real Estate News Volume 4 No 4 (37) April 2010 RETAIL FOCUS Multi Corporation sells 35 percent of Forum Mersin to Union Investment for 68 million Multi Corporation and Union Investment have finalized an agreement to purchase the remaining 35 percent of the shares owned by Multi. Union Inv Commercial Real Estate News Volume 4 No 4 (37) April 2010 RETAIL FOCUS Polands first Family Point opens in Wroclaw Polands first Family Point has opened its doors in Wroclaw. The 9,000 sqm centre is one of only a few retail parks in the country and features a total of 17 shopping and recreational ou Commercial Real Estate News Volume 4 No 4 (37) April 2010 EuropaProperty presents the 5th annual SEE Real Estate Awards for 2009 Building on the success of the last four EuropaProperty SEE Real Estate Awards, EuropaProperty is proud to present the fifth annual SEE Real Estate Awards for 2009. The Aw Commercial Real Estate News Volume 4 No 4 (37) April 2010 Segro wins a new customer in Tulipan Park Ostrava The German company Erwin Quarder has become the latest customer in Segros Tulipan Park Ostrava, leasing a total of 4,220 sqm of warehouse space. Tulipan Park Ostrava is being developed on a 4 Commercial Real Estate News Volume 4 No 4 (37) April 2010 European investment volumes up 10 percent over last four quarters says DTZ Reflecting seasonal trends, the volume of commercial real estate investment across Europe posted a 29 percent quarter- on-quarter decrease to 16.3 billion, when compar Commercial Real Estate News Volume 4 No 4 (37) April 2010 Central Europe boosts industrial real estate market Central Europe continues to play a significant role on the industrial real estate map, and despite the rebalancing of the global economy, the market saw a number of major transactions; last Commercial Real Estate News Volume 4 No 4 (37) April 2010 People on the move Kirill Popov appointed as Executive Director at C&W in Russia Cushman & Wakefield has announced the appointment of Kirill Popov as an Executive Director. Kirill will focus on coor- dinating the activities of the offi ce, re Selected Offi ce Buildings in Commercial Real Estate News Poland List your available office space in the May edition of The Wire for only 99. Deadline April 25th. Volume 4 No 4 (37) April 2010 photo name of building address net price (per sqm) class total space /available /minimum available investor Commercial Real Estate News Volume 4 No 4 (37) April 2010 Selected Offi ce Buildings in Poland, cont d photo name of building address net price (per sqm) class total space /available /minimum available investor contact agency contact Advertise your SUBLEASE offi ce space in The Wire for only 99 per The Commercial Real Estate NEWS E.C.E. Property Media ul. Łucka 15, 00-842 Warsaw, Poland iption ubscr t: s ac trial for a lease cont perty.com p pro opa eur eting mark Publisher Craig Smith craigeuropaproperty.co +48 604 144 769 Editorial Director Winston Norman winstoneuropaproperty. +48 (22) 586