Fears about Europe’s economic climate have many investors on edge, but, as Cushman & Wakefield found in a recent report, Poland is the destination du jour for savvy developers.
2011 was a fantastic year for the commercial real estate market, according to “Marketbeat Poland – Spring 2012”, a report prepared Cushman & Wakefield. The overall investment transaction volume rose by 30% compared with 2010, and the Warsaw office market finished the year on another record high take-up level.
Poland’s strong economic performance, access to finance for commercially viable projects, and a flurry of attractive schemes prompted a number of deals. With continuous growth in transaction volume, Poland continues to be one of the most attractive destinations for capital.
Last year Warsaw again finished on a record high take-up level. Office renewals and re-gearing continued to account for the largest share of take-up, 29%. Modern office space stock in Warsaw now totals 3,597,000 sq m, with 120,100 sq m added to the market in 2011.
The retail sector was also strong, with new retail space supply in 2011 totalling around 700,000 sq m of gross leasable area. Shopping centres accounted for the largest share, 73%, followed by large-scale stores and retail parks, 21%, outlet centres, 3% and other retail facilities, 3%. The biggest shopping centre to open last year was Millenium Hall in Rzeszow, offering 49,000 sq m of shopping space.
Tenant demand remains at a healthy level, and is focused on established retail space offering high footfall and revenues. Large international and domestic retail chains continued to expand in 2011 and new entrants are expected in 2012.
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Top image credit : Photobank gallery