Smurfit Westrock extends lease and expands office at Quattro Business Park

Smurfit Westrock has extended its lease and expanded its office space at Quattro Business Park in Krakow. The global packaging leader now occupies 1,713 sqm across two floors in Building D.

The expansion, managed by Globalworth’s in-house Workplaces team, follows a Design & Build approach, ensuring a modern and functional office tailored to the company’s needs. The redesign includes managerial and meeting rooms, a large conference space, open-plan work areas, and enhanced amenities such as a chillout zone with relaxation areas, table football, and a stylish kitchen.

“The new space promotes communication and encourages employees to engage more with the office,” said Julie Archambault, Asset Management & Leasing Director, Globalworth Poland.

Located in Krakow’s well-connected north-eastern business district, Quattro Business Park is a five-building complex spanning 66,000 sqm, with BREEAM Excellent certification and 1,300 parking spaces. An upcoming multi-level transport hub set for 2026 will further enhance accessibility.

The 2.5-month renovation reflects a growing demand for modern, employee-centric office spaces in Krakow’s commercial real estate market.

What New Housing Projects Are Developers Preparing?

Which new housing developments are set to launch this year? What will be available, and who are these projects designed for? What type of properties are developers focusing on the most? You can find details on upcoming projects in the comments from the companies featured in this report.

Cezary Grabowski, Sales and Marketing Director at Bouygues Immobilier Polska:
In 2025, we plan to start 10 new projects, including 8 in Warsaw, as well as in Wrocław and Poznań. This means over 1,000 new flats in various locations, with different sizes and layouts, ranging from 1 to 5 rooms. We offer flats in the popular segment, but also of a higher standard. We have something for everyone, whether you are single, a couple or a family with children.

Tomasz Kaleta, Managing Director of Sales and Marketing at Develia:
In 2025, we will be expanding our portfolio of projects in Poland’s largest cities, tailoring our offering to the needs of different groups of buyers. The basis will remain functional apartments in the popular segment, as well as those of a higher standard. Develia’s offer will also include premium investments that will meet the expectations of customers looking for prestigious projects in top locations.

We are also planning to gradually diversify our activities in the PRS and private student halls segments, which are playing an increasingly important role in the Polish property market.

Zbigniew Juroszek, CEO of Atal:
We intend to continue the investments we have started and their stages, and given the great diversity and scale of our operations, these will be projects in various market segments in all eight metropolitan areas in which we operate. Taking into account the current state of the market and the potential of buyers, we predict that well-designed, functional apartments with a smaller surface area and relatively cheaper investments located outside city centres, but with good transport links and infrastructure, will continue to be popular. Customers will find projects that meet this demand in our wide range of offers.

Agnieszka Gajdzik, Wilgos, Sales Manager Ronson Development:
In 2025, we plan to start a number of new projects that will enrich our offer in key locations in Poland. In March, the second stage of the Zielono Mi investment will start in Warsaw – an exceptional housing estate that is very popular with customers looking for comfortable apartments in a project whose essence is its natural character. In May, we will focus our activities on several projects at the same time. In Wrocław, the construction of a housing estate at Sobieskiego Street will start, while in Warsaw, we will start the implementation of two projects – Marynin and Nova Królikarnia 3D.

In the summer, we will also turn our attention to Poznań and Szczecin. In June, the next stage of the Nowe Warzymice 7.1 investment in Szczecin will start, and in July, we will begin two projects in Poznań – the expansion of the Babimojska housing estate and a completely new project, Newton Skyline on Bełchatowska Street. The following months will bring further development of our investments in Warsaw. In September, we will launch a project on Stojowskiego Street, which will enrich our offer with flats that meet the diverse needs of the capital’s modern residents.

All these projects are aimed primarily at private clients who are looking for flats of the highest standard. In line with our Expect More strategy, we focus on solutions that exceed customer expectations – both in terms of functionality and aesthetics. Our priority is to provide living spaces that combine quality with comfort and respond to the needs of a dynamically changing real estate market.

Tomasz Łapiński, President of the Management Board and Managing Director of Residential Investments at Cordia Polska:
Our current portfolio includes a premium development in Sopot – Haffner Residence, which is in a unique location just a few minutes from the beach. The last finished apartments are also available in the other Tri-City projects: Leśna Sonata in Sopot and Villa Jaśkowa Dolina in Gdańsk-Wrzeszcz. We are continuing the construction of two projects that were started last year: the Hi Mokotów housing estate in Warsaw and Craft Zabłocie in Krakow. We have also started the second stage of the Modena housing estate on the site of former clothing factories in Poznań.

In the coming weeks, we will launch an extremely unique project in Warsaw’s Wilanów district – a complex of seven city villas with 14 apartments. We have something for every customer segment: from those looking for higher-end investment properties or holiday apartments as a second home, to large apartments for families, to flats for first-time buyers or those considering renting out their property. We plan to start new construction projects in Warsaw and Gdańsk later this year.

Michał Witkowski, Sales Director of Lokum Deweloper:
We specialise in the segment of higher standard flats. Our investments are mainly located in the centre of Wrocław, as well as in quiet, well-connected districts of the city. They are distinguished by modern architecture and special attention to common areas, in which we create unique green areas filled with rich vegetation and recreational areas for residents to actively relax. Thanks to this, the properties we offer have all the features to perfectly fulfil their residential and investment functions. Currently, we have a large pool of flats on offer, varying in terms of size and layout. These are both finished properties and those under construction.

This year, in addition to the construction of the Lokum la Vida housing estate and the expansion of Lokum Porto, we are focusing on the launch of a new, multi-stage investment project that will be built in a very attractive location in the centre of Wrocław, on Góralska Street. It will be a modern housing estate, in line with the idea of a 15-minute city. Its character will refer to recognisable districts of world-famous metropolises. Its focal point will be a revitalised old hall, transformed into a food hall with a wide range of gastronomic offers. We are currently awaiting the necessary decisions that will allow us to start the implementation of this project.

Marcin Michalec, Managing Director, Okam Capital:
We are currently working on four projects: the second phase of CityFlow, a green development in Warsaw’s Wola district; Warzelnia by Bohema, the last building in the Bohema complex in the Praga district of Warsaw; the impressive Now residential development in the Nowy Centrum shopping centre in Łódź; and buildings E, F and G buildings of the Inspire investment in the brilliant location of the Dolina Trzech Stawów (Three Ponds Valley) in Katowice.

Our clients are people looking for great locations, high standards of finish, and solutions that increase the comfort of living. All our investments are carried out in accordance with the New Quality Policy, the assumptions of which are an expression of social responsibility and directly translate into an improvement in the quality of life of the residents. We implement facilities that foster the development of local communities, including residents’ areas with gyms and children’s corners, co-working spaces and roof terraces.

In 2025, we will be working on further investments, including another project in the Dolina Trzech Stawów (Three Ponds Valley) in Katowice, the second stage of the Strefa Progress in Łódź and a yet to be announced large-scale revitalisation project in Łódź, as well as our flagship and strategic project – the F.S.O. district of the future. A park in Warsaw’s Praga Północ district. We are also preparing two more investments in the Warsaw agglomeration with a total potential of around 1,000 apartments.

Damian Tomasik, CEO of Alter Investment:
As a land developer, we are implementing an ambitious development plan in 2025, launching various projects that respond to growing housing and investment needs. Our key projects include three PRS projects in Gdańsk, at Madalińskiego, Warszawska and Trakt Świętego Wojciecha streets. There are also single-family developments in picturesque locations near Gdańsk and in the Warmia and Mazury region, including Pomlewo near Gdańsk and the Jeziorany municipality on the shores of Lake Ławki. In addition, our portfolio will include a plot of land for a hotel in Lądek-Zdrój with 300 luxury apartments.

This year, we are placing particular emphasis on the development of the PRS sector, responding to the dynamically growing demand for long-term rental. At the same time, we are developing the segment of multi-family buildings and single-family houses in locations that offer unique landscape values and the comfort of living close to nature.

Jakub Sobczyński, Managing Director of Megapolis:
We have started 2025 with ongoing construction of almost 700 apartments and the largest stock of building permits in our history. In the coming year, we will continue to implement key projects, including the Ozon, Clou Lindego and the new Fi housing estates. Clou Lindego, a project characterised by its cosy atmosphere, occupies a special place in our portfolio. The investment was designed as a single cascading building with a green patio. Residents will be able to enjoy a dedicated common area that promotes integration and relaxation. The project also includes two-storey apartments with windows reaching 4.5 metres. We are developing our portfolio and planning further investments in the second half of 2025.

Source: dompress.pl
Photo: Lesna Sonata, Cordia

CPI Europe to sell Bratislava property portfolio to WOOD & Company

CPI Europe Group has agreed to sell a significant office and retail complex in Bratislava to WOOD & Company, marking another step in its ongoing portfolio optimization strategy. The transaction presents a new investment opportunity for WOOD & Company’s clients, offering stable yields and future development potential.

The property portfolio includes two myhive office buildings, the VIVO! shopping center, and a 3,200 sqm plot of land with residential development potential. Located in the centrally positioned Nové Mesto district, the mixed-use complex spans approximately 70,000 sqm of usable space. The site is known for its strong infrastructure, panoramic views, and an integrated office and retail environment. Tenants of the modern myhive office towers benefit from direct access to the VIVO! shopping center, which houses 160 retail and service businesses.

The sale will be executed in two tranches as part of a share deal, with completion targeted by the end of 2026. The first tranche involves the formation of a joint venture between CPI Europe Group and WOOD & Company, while the second tranche will see the full transfer of ownership. This phased approach ensures a seamless transition, allowing WOOD & Company to implement its strategic vision for the complex. Closing of the first tranche is expected in the first half of 2025, pending customary regulatory approvals. The transaction is set to be finalized at approximately the portfolio’s carrying amount.

This acquisition represents a major milestone in WOOD & Company’s strategy to expand its portfolio with high-value investment opportunities in Central Europe’s prime locations. With this deal, the company aims to enhance the complex’s long-term value while leveraging the strategic advantages of its central Bratislava location.

Murapol Real Estate faces lawsuit over property deal in Warsaw

Murapol Real Estate, a subsidiary of Murapol, is facing a lawsuit from J.K. Investment over the conclusion of a real estate purchase agreement in Warsaw. The claim, which amounts to PLN 66.7 million for the property transaction and an additional PLN 53.8 million in compensation for alleged lost profits, has been strongly contested by Murapol, which deems the lawsuit entirely unfounded.

The lawsuit seeks to compel Murapol Real Estate to submit a declaration of intent to purchase the property known as ‘Project Łopuszańska’ for a net price of PLN 66.7 million, with a valuation adjustment for a portion of PLN 63.7 million. Additionally, J.K. Investment is demanding the payment of PLN 53.8 million plus interest as compensation for unrealized profits.

Should the court reject the primary claims, the plaintiff has requested an alternative ruling, seeking compensation of PLN 191.6 million plus interest from Murapol, again citing lost benefits.

Murapol, in response, has asserted that the lawsuit is baseless and has confirmed its intent to file a formal rebuttal within the prescribed legal timeframe. According to Murapol, the dispute stems from a preliminary sale agreement signed in 2022 for the Łopuszańska Project. The final sale was contingent on specific conditions, including securing a definitive building permit. In April 2024, Murapol exercised its right to withdraw from the agreement due to the non-fulfillment of this condition.

J.K. Investment, however, contests the legitimacy of Murapol’s withdrawal, leading to the legal dispute. Murapol maintains that the claim for lost profits is unsubstantiated and without legal merit. After consultation with legal advisers, the company remains confident that the lawsuit will be dismissed in its entirety.

This legal battle adds a layer of complexity to an already intricate real estate transaction, with the court’s ruling expected to have significant implications for both parties.

CTP invests €57 Million in Hitachi energy project in Brno, creating 200 jobs

CTP has announced a €57 million investment in the construction of a high-tech manufacturing facility for Hitachi Energy at CTPark Brno. This first phase of the project includes a 50,000 sqm state-of-the-art high-voltage products factory, with an expected yield on cost (YoC) exceeding 10%.

The factory will produce gas-insulated lines (GIL) and components for gas-insulated switchgear (GIS), essential for the transmission and distribution of electricity. It will feature cutting-edge production technologies, including a modern welding shop with friction stir welding technology, a robotized powder coating facility, and a new service center. The project is expected to generate approximately 200 new jobs, with facilities tailored to meet the most stringent manufacturing quality standards.

A key highlight of the project is its strong focus on sustainability. The facility will incorporate heat pumps and solar panels to optimize energy efficiency. CTP aims to secure the prestigious BREEAM Outstanding certification, underlining its commitment to environmental standards. Employees will also benefit from a unique underground car park, designed for convenience and accessibility.

Beyond the initial investment, CTP has ambitious plans to develop an adjacent campus at CTPark Brno, which will provide additional opportunities for employees and visitors. The campus will include offices, residences, cafes, and flexible multi-functional CTBox units, designed for showrooms, administration, warehousing, and production spaces. The initiative is aimed at fostering community collaboration and enhancing the overall work environment.

Hitachi Energy has been collaborating with CTP since 2014, when it initially leased 15,000 sqm at CTPark Brno. Since then, the company has continuously expanded its presence. As a global leader in power and automation technology, Hitachi Energy focuses on renewable energy and digital power grid solutions, aligning with the shift towards sustainable energy sources.

“Our factory in Brno is a testament to our commitment to expanding global capacity and meeting the growing demand for clean energy solutions,” said Pavel Kovář, Country Managing Director of Hitachi Energy for the Czech Republic and Slovakia. “This new facility will support the production of our eco-efficient EconiQ portfolio, which eliminates sulfur hexafluoride (SF6), one of the most potent greenhouse gases, from high-voltage equipment. Our investment of over 1.1 billion CZK will help scale production and meet rising demand for sustainable energy solutions.”

Michal Dospěl, Regional Construction Director at CTP, emphasized the significance of the project for both companies. “We are proud to deliver this ambitious high-tech facility for our long-term partner, Hitachi Energy. This project underscores our dedication to sustainability and innovation, contributing to the growth of CTPark Brno while providing state-of-the-art working environments for our clients and employees.”

With this major investment, CTP and Hitachi Energy are reinforcing their long-standing partnership while driving forward advancements in energy-efficient manufacturing and industrial development in the Czech Republic.

INDUSTRIA expands assets under management to €5.6 Billion in 2024

INDUSTRIA has significantly expanded its assets under management (AuM), achieving a 15% increase in 2024 despite a challenging market environment. The Frankfurt-based asset and property manager saw its AuM rise from €4.9 billion at the end of 2023 to €5.6 billion by the close of 2024. The number of residential and commercial units under management also grew from 19,400 to 21,800.

The expansion is largely attributed to the acquisition of two major asset management mandates in the summer of 2024, adding €350 million in assets and approximately 2,200 residential units to INDUSTRIA’s portfolio. The company also secured two additional large-scale property management contracts and completed several development projects purchased in prior years. Looking ahead, INDUSTRIA plans to integrate around 900 newly built apartments into its investment funds in the coming months.

Alongside its acquisitions, INDUSTRIA was also active in property sales. The company sold four assets from the portfolio of its FOKUS WOHNEN DEUTSCHLAND open-ended public property fund for a total of approximately €103 million.

Strategic Growth and Market Adaptation

Reflecting on the year, Thomas Wirtz FRICS, Managing Director of INDUSTRIA, highlighted the firm’s adaptability in a market characterized by low transaction volumes. He noted that acquiring the management mandates of two investment funds, including assets from the insolvent d.i.i. Group, fueled exceptional growth. Looking forward, INDUSTRIA aims to expand third-party mandates and introduce new fund products in 2025.

Managing Director Arnaud Ahlborn emphasized the company’s success in selling properties despite the challenging market. He stated that demand remains strong for energy-efficient assets, which INDUSTRIA has strategically acquired for its funds. He also noted that the company is preparing further sales as part of its broader investment strategy.

Strengthening Property Management Capabilities

Jürgen Hau, Managing Director responsible for property management, detailed INDUSTRIA’s plans for 2025. He underscored the company’s ambition to strengthen its position as a leading residential property manager in Germany while expanding into commercial real estate. In 2024, INDUSTRIA upgraded its technical infrastructure, enhanced client management, and broadened its service mandates, including taking on the management of large-scale commercial properties in partnership with Becken Group.

Currently, INDUSTRIA manages ten institutional property funds in addition to the FOKUS WOHNEN DEUTSCHLAND open-ended public property fund. In its institutional division, the firm oversees accounts for approximately 80 investors, including superannuation schemes, pension funds, municipal and clergy pension schemes, insurance companies, and banking institutions. With continued investment in technology and strategic acquisitions, INDUSTRIA is poised for further growth in 2025.

Bain Capital acquires Apleona to drive growth in European facility management

Apleona, a European provider of integrated facility management (FM) based in Neu-Isenburg near Frankfurt, has approved its acquisition by Bain Capital, one of the world’s top private investment firms. The deal sees Bain Capital take over from private equity firm PAI Partners, marking a new chapter in Apleona’s expansion and strategic growth.

With a strong technical expertise and an international footprint, Apleona is well-positioned to provide high-quality, innovative building services to both regional clients and large, cross-border portfolios. The company is also responding to the growing demand for ESG solutions, energy efficiency, and CO2 reduction in building management.

Under PAI’s ownership, Apleona achieved significant growth, reaching a record turnover of €4 billion in 2024. The company has been expanding its European platform while advancing its digital transformation, focusing on data-driven and AI-powered HVAC control systems and predictive maintenance solutions. Apleona’s growth strategy has been bolstered by 14 successful acquisitions, including the 2023 takeover of the Gegenbauer Group.

Dr. Jochen Keysberg, CEO of Apleona, expressed gratitude to PAI Partners for their support since 2021 and welcomed Bain Capital’s investment. He stated that with Bain Capital as the new owner, Apleona will continue to operate independently and further develop its role as a leader in integrated facility management. He emphasized the company’s commitment to expanding its service portfolio through acquisitions and investing in AI, digital solutions, and automation to enhance customer benefits.

Photo: Dr. Jochen Keysberg, CEO of Apleona
Dr. Michael Siefke, Partner & Chair of Private Equity in Europe at Bain Capital, highlighted the firm’s strategic interest in Apleona. He noted that Apleona has become a market leader in facility management in Europe and demonstrated remarkable progress. Bain Capital aims to support its next growth phase, particularly in decarbonizing buildings, leveraging the firm’s global resources and industry expertise.

Ralph Heuwing, Partner & Head of DACH at PAI Partners, reflected on the company’s transformation under their ownership. He stated that PAI is proud to have played a role in Apleona’s growth over the past four years. He acknowledged that the company has built a strong European platform, an extensive service portfolio, and a leadership position in sustainability and decarbonization. He expressed confidence that Apleona is well-positioned for continued success.

The acquisition is still subject to antitrust and regulatory approvals before finalization. Once completed, Bain Capital’s involvement is expected to accelerate Apleona’s growth, reinforcing its standing as Europe’s premier integrated facility management provider.

Polish Government unveils new housing program

The Ministry of Development and Technology (MRiT) has introduced a new housing program aimed at addressing Poland’s housing challenges. While the initiative has been welcomed as a positive move, critical details remain to be finalized in draft laws, according to Katarzyna Pełczyńska-Nałęcz, Minister of Funds and Regional Policy and First Vice-President of Poland 2050.

Key Elements of the Housing Program

The newly announced program, known as “Key-to-Housing,” is based on three main pillars: municipal housing, social housing, and property ownership under the “First Keys” initiative. The plan includes a significant financial commitment of PLN 2.5 billion to support social housing, with the aim of launching investments immediately to meet the growing demand.

“A strong YES for social housing and ensuring that PLN 2.5 billion is allocated – a big plus! If we want housing to be available in 2025, investments must start today. Local governments are ready, and people are waiting. We need to act fast,” Pełczyńska-Nałęcz emphasized.

One innovative aspect of the program is the expansion of housing cooperatives, TBS (Social Housing Associations), and SIM-ymes to construct apartments not only for rent but also for sale. This measure is expected to increase the housing supply while ensuring that no state-funded loans are directed towards private developers.

Concerns Over Secondary Market Loan Subsidies

While the program has received praise for its social housing and cooperative components, there are concerns over the plan’s reliance on subsidizing loans for secondary market purchases. Pełczyńska-Nałęcz cautioned that allowing local politicians to determine which apartments qualify for subsidies could create conflicts of interest and increase pressure from developer lobbies.

Restrictions and Eligibility Criteria

The “First Keys” program will be available exclusively to individuals who have never owned an apartment or house. Applicants must meet legal income criteria and purchase properties from the secondary market, excluding new developments. Further conditions include:

The property must have been in service for at least five years.

The current owner must have possessed it for at least three years.

A price cap of PLN 10,000 per square meter applies, with an increased limit of PLN 11,000 per square meter in major cities such as Warsaw, Gdańsk, Kraków, Poznań, and Wrocław.

Municipalities may set their own price limits based on local conditions.

Future Developments and Legislative Work

Pełczyńska-Nałęcz reiterated that while the strategy is a move in the right direction, the implementation details will be crucial. “The details are super important and will only be clear in the draft laws. We will work on them constructively and reliably,” she stated in a social media post on Platform X.

With a strong emphasis on social housing and cooperative ownership models, the Polish government aims to address housing affordability while preventing speculative price inflation. The coming months will determine how the legislative process shapes the final framework of this ambitious housing initiative.

Source: Inwestycje.pl

The Drone Industry on the Rise – ZenaTech and the Future of Aviation

The global drone industry is experiencing unprecedented growth, fueled by advancements in technology and rising demand in the military and logistics sectors. With market projections soaring from USD 14 billion in 2023 to an estimated USD 47 billion by 2032, interest in cutting-edge drone solutions remains strong.

ZenaTech Inc. has achieved a major milestone with the relocation of its subsidiary, ZenaDrone, to a state-of-the-art production facility in Phoenix, Arizona. The new site will focus on manufacturing and assembling high-tech drones for the U.S. Department of Defense and NATO. Beyond production, the facility will support research, development, sales, and training operations. A dedicated aviation test site has been integrated to showcase the capabilities of ZenaDrone 1000, an AI-powered, autonomous drone designed to comply with the stringent requirements of the National Defense Authorization Act (NDAA).

One of the most ambitious projects at the Phoenix facility is ‘Sky Traffic,’ a research initiative leveraging quantum computing and artificial intelligence to develop drone swarms. These highly coordinated systems could revolutionize mission execution in areas such as border control, military applications, traffic management, weather monitoring, and wildfire suppression.

The global demand for military drones is expanding rapidly, particularly in intelligence, surveillance, reconnaissance, and targeting (ISRT) applications. ZenaTech has already conducted successful paid tests for logistics and transport drone deployment, positioning itself as a strong competitor in the evolving market. Industry leaders like Parrot SA, AeroVironment Inc., and Kratos Defense & Security Solutions continue to vie for dominance in this growing sector.

With its new production facility and a strategic focus on AI-driven drone swarms and quantum computing, ZenaTech is emerging as a significant player in the drone industry. The company’s innovative approach and commitment to technological advancements position it for success in an expanding market. As the drone sector continues to evolve, ZenaTech stands poised to play a pivotal role in shaping the future of autonomous aviation.

Photo: ZenaTech

GARBE PYRAMID-MAP Report: Slowing growth in European logistics real estate

The era of rapid rental increases in Europe’s logistics real estate market appears to be coming to an end, according to the latest GARBE PYRAMID-MAP report. Prime rents in Europe’s top logistics markets rose by just 0.9% in the second half of 2024, equating to an increase of just €0.06 per square meter – from €7.30 to €7.36. This modest rise lags behind the eurozone inflation rate of 2.4%. While 2024 saw a slight year-on-year decline in take-up (-7%), the figures still surpassed pre-pandemic levels. The vacancy rate across Europe stood at just under 6%.

Market Consolidation Following Boom Years

“The slowdown in rental growth is primarily due to economic conditions in Europe,” explained Tobias Kassner, Head of Market Intelligence and Sustainability at GARBE Industrial Real Estate. “Many companies have paused expansion and are instead focusing on consolidation. The pandemic had triggered a surge in demand for logistics facilities, but that cycle has now concluded.”

Kassner also pointed to an increase in supply due to a lag between new developments and successful leasing. However, with construction activity slowing, the supply-demand gap is expected to narrow again.

The study found that in over half (57%) of the 121 logistics submarkets surveyed, prime rents remained stable. An upward trend was observed in 35% of markets (42 submarkets), while only 10 regions saw rental declines. Among the biggest increases were Leeds and West Brabant, where rents rose by €0.60 per square meter, as well as Munich, Nuremberg, Cardiff, and London, which each saw increases of €0.50 per square meter.

Regional Variations and Market Trends

Germany’s logistics market saw minimal rental growth, averaging just €0.03 per square meter, with Munich and Nuremberg contributing to the slight increase. Several regions, including Fulda/Bad Hersfeld, Leipzig, Regensburg, Saarbrücken, Magdeburg, and Kassel, experienced a minor decline in prime rents, primarily due to speculative development and temporary oversupply in secondary markets.

“In Germany, we are seeing a stabilisation after years of dynamic growth,” noted Kassner. “While some Class C cities are facing a temporary oversupply, the overall market remains stable at a high level.”

Elsewhere, prime rents remained mostly unchanged in Italy, France, and Central and Eastern Europe (CEE), while Spain recorded a €0.05 increase. The most significant gains were observed in the United Kingdom (+€0.26) and the Netherlands (+€0.09), as both markets continued to demonstrate strong demand driven by high consumption rates and a resilient logistics sector.

Forecast: Moderate Growth Expected in the Years Ahead

GARBE, in collaboration with Oxford Economics, forecasts steady prime rent increases over the next five years across 30 major European logistics markets. Analysts project an average annual growth of 2.7%, or €0.24 per square meter, slightly outpacing the forecasted inflation rate of 2.4%.

London, Munich, Manchester, and Lyon are expected to see the highest growth rates, exceeding 3% annually. While the report suggests continued robust rental growth, the rate of increase will be more moderate compared to the rapid rises of previous years.

“The leading markets will maintain solid growth, though at a more measured pace,” Kassner concluded. “The logistics sector remains strong, but we anticipate a phase of stabilisation rather than exponential expansion.”

The GARBE PYRAMID-MAP provides a comprehensive overview of rental trends and investment yields in Europe’s top logistics markets, offering valuable insights into the evolving dynamics of the sector.

Source: GARBE
Under the following link you can download the GARBE-PYRAMID-MAP:

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