Poland Sees Rise in New Businesses Despite Increase in Corporate Insolvencies

Business activity in Poland strengthened in the opening months of 2026, with the number of newly established companies rising compared with the same period last year, according to the latest figures released by Statistics Poland. At the same time, the number of insolvency cases also moved higher, reflecting continued pressure across selected sectors of the economy.

Nearly 89,000 businesses were established during the first quarter of the year, representing moderate annual growth. The figures point to continued entrepreneurial activity despite a more uncertain economic environment and ongoing cost pressures affecting many industries.

Professional and business-related services generated the largest share of new company formations, while construction and trade also remained among the most active sectors. Transport and logistics recorded some of the strongest growth in new registrations, alongside technology and communications businesses.

The report also highlighted the growing role of renewable energy initiatives within the business landscape. Registrations of cooperatives increased significantly during the quarter, largely driven by new entities linked to local renewable energy production and distribution projects.

Sole proprietors continued to account for the majority of new business activity, although the number of newly created limited liability companies also increased compared with the previous year.

Alongside the rise in registrations, insolvency proceedings also increased during the quarter. More than 100 companies entered bankruptcy proceedings, with the largest increases recorded in trade-related activities, construction, hospitality and transport.

Manufacturing and industrial businesses continued to account for the highest overall number of insolvencies, while retail and automotive-related activities also recorded elevated levels.

The data suggests that while company creation remains resilient, parts of the economy continue to face operational and financing challenges. Sectors linked to consumer spending, logistics and construction appear to be under particular pressure as businesses adapt to changing market conditions and higher operating costs.

According to the report, the statistics are based on entries in Poland’s national business register and bankruptcy decisions issued by district courts during the first quarter of 2026.

NEPI Rockcastle Reports Higher Income and Strong Occupancy in Q1 2026

NEPI Rockcastle reported higher rental income, continued tenant sales growth and low vacancy levels in the first quarter of 2026, supported by stable leasing activity and progress across its development and renewable energy pipeline.

Net operating income (NOI) reached €157.7 million in Q1 2026, an increase of 3.4% compared with the same period last year. Property NOI rose by 3.2% to €155.4 million, while revenue generated from the group’s energy activities increased to €2.3 million.

Like-for-like tenant sales increased by 3.8% during the quarter, with footfall broadly stable at 0.6% growth and average basket size rising by 3.3%. Vacancy across the portfolio remained low at 1.8%, while cash collection rates reached 98% for the quarter.

Marek Noetzel, who assumed the role of Chief Executive Officer on 1 April 2026, said the results reflected the resilience of the company’s portfolio and continued rental growth supported by inflation-linked leases and active asset management.

The company said its strongest operational momentum during the quarter came from Poland and Croatia, while Romania and Slovakia recorded more moderate performance against a softer consumer environment. Entertainment, services, health and beauty categories delivered the strongest tenant sales growth, while electronics and DIY-related segments remained under pressure.

Leasing activity remained active across the portfolio. During Q1 2026, the company signed 315 leases covering more than 78,000 sqm of gross leasable area, including 108 new leases. According to the company, international retailers accounted for around half of the newly leased area.

NEPI Rockcastle also reported continued progress on its development pipeline. The extension of Promenada Bucharest remains on schedule, with the retail component expected to open in the second quarter of 2027 and approximately 85% of the mixed-use scheme already leased or under agreed terms.

In Romania, the company also obtained a building permit for the Galati Retail Park project, scheduled to open in the second half of 2027.

The group continued expanding its renewable energy platform during the quarter. The Chisineu-Criș photovoltaic project in Romania, with planned capacity of 54 MW, is expected to begin commercial operations by the end of May 2026, while the Ariceștii Rahtivani project is planned to become operational in the third quarter of the year.

As of 31 March 2026, the company reported cash and cash equivalents of €565 million and an LTV ratio of 32.4%, remaining below its long-term threshold of 35%. Investment property value stood at €8.26 billion.

During the quarter, the company secured additional green financing, including a €225 million unsecured green term facility and a renegotiated secured green loan in Romania. The company also repurchased approximately 4 million shares between March and April 2026 for a total consideration of €27.7 million.

Looking ahead, NEPI Rockcastle maintained its guidance for approximately 3% growth in distributable earnings per share in 2026, subject to trading conditions and broader macroeconomic developments.

Stokado Opens Second Self-Storage Facility in Kraków

Stokado has opened a new self-storage facility in Kraków, expanding its presence in one of Poland’s largest urban markets. The development at Nowohucka Street is the company’s second asset in the city and forms part of its ongoing nationwide expansion strategy.

The facility provides more than 3,200 sqm of net leasable area across five floors and includes over 600 storage units. The building has been designed specifically for self-storage operations and incorporates reception and staff areas, technical facilities and access to all floors via two freight lifts.

Located in a mixed residential and commercial area of Kraków, the property is intended to serve both private individuals and business customers. The company said the location aligns with its strategy of developing facilities in densely populated urban areas with strong accessibility and visibility.

Redefine Properties, Griffin Capital Partners and the company’s founders jointly own the platform.

Pieter Prinsloo, Chief Executive Officer at Redefine Europe BV, said the Polish self-storage market continues to offer growth potential compared with more mature Western European markets.

Marcin Rękawiczny, Vice President Investments at Griffin Capital Partners, said the opening marks the third new Stokado location delivered within the past eight months.

The building includes several automated and digital access systems, including app-based entry, individual access codes, automatic unit locks and 24-hour CCTV monitoring. Customers are able to access the facility at all times.

The project has also been developed with sustainability measures including photovoltaic panels, a heat pump, a ground heat exchanger, LED lighting and a rainwater retention system. The building has been prepared to meet BREEAM certification requirements.

According to the company, the Kraków facility forms part of a broader strategy to expand Stokado’s presence in Poland’s major cities and strengthen its position within the self-storage sector.

West Group Rebrands iResidence as KronenPark Residences and Expands Residential Pipeline in Romania and Germany

West Group has announced the rebranding of the iResidence residential scheme in northern Bucharest as KronenPark Residences, following the full acquisition of the project and its integration into the group’s wider Kronen-branded portfolio.

The developer said the move forms part of a broader long-term strategy aimed at consolidating its residential platform across Romania and Germany. The group is currently developing four residential projects, including schemes in Pipera, Cotroceni and Sinaia, alongside a residential development in Offenbach, near Frankfurt, where the company also operates a subsidiary. West Group said it is targeting consolidated turnover of approximately EUR 75 million in 2026.

Dan Crăciunescu, founder of West Group, said the rebranding reflects a focus on creating a replicable residential product with consistent technical standards, services and brand identity across future developments.

The announcement comes amid continued growth in Bucharest’s residential market, particularly in the northern districts of the city, where developers remain active despite increasing competition and rising construction costs. According to market data cited by the company, prices for new apartments in Bucharest increased by 24% over the past year, while more than 20,500 new homes are expected to be delivered in Bucharest and surrounding areas in 2026.

KronenPark Residences is being developed on a 23,000 sqm site in the Pipera–North Bucharest area and will comprise 547 apartments across eight buildings. The development includes 57 apartment layouts, ranging from studios to penthouses and units with private gardens.

According to the developer, the first phase of the project, comprising 273 apartments, has reached a 45% reservation rate. The company noted that reservations increased by five percentage points over the past three weeks as construction works progressed.

West Group stated that the structural works have been completed and that façade installation is scheduled to begin on 18 May 2026. Interior partitioning and technical installations are also ongoing.

The project is planned to include smart-home infrastructure, a building management system, underground parking, EV charging stations, bicycle parking and concierge-related services. A 15,000 sqm landscaped park with sports and leisure facilities is also planned as part of the scheme.

MLP Group Signs Stockly at MLP Poznań West Development

MLP Group has signed a lease agreement with Stockly, a company specialising in 3D printing technologies, at the MLP Poznań West logistics park in western Poland. The tenant will occupy approximately 2,400 sqm of warehouse and office space, with operations already launched under an early access arrangement. Full delivery of the facility is planned for December 2026.

The leased space includes more than 2,100 sqm dedicated to warehouse and logistics activities, while around 250 sqm will be used for office and staff facilities within a two-storey building. According to the company, the office section is expected to be handed over in early December.

Stockly operates in the 3D printing sector, supplying consumables, printers, 3D pens and accessories, alongside prototyping and small-scale manufacturing services for both individual and corporate customers. The company also sells products through its online platform, filament3d.pl.

Tomasz Pietrzak, Leasing Director Poland at MLP Group, said the agreement reflects continued demand from companies in logistics and e-commerce for modern warehouse space in strategically located parks.

Damian Michalski, Leasing Director, Industrial & Logistics at Rock Estate, said the project involved adapting both warehouse and office areas to meet Stockly’s operational requirements, including a dedicated 3D printing workshop.

MLP Poznań West is located near the S11 expressway, around 7 km from the A2 motorway junction. Once completed, the park is expected to provide more than 173,000 sqm of logistics and industrial space aimed at e-commerce, distribution, logistics and light manufacturing occupiers.

The development is being delivered with sustainability features including rooftop photovoltaic systems, electric vehicle charging stations, cycling infrastructure and biodiversity measures. The buildings are also undergoing BREEAM certification.

Bucharest Office Leasing Activity Increases in Q1 2026, Says Colliers

Leasing activity in Bucharest’s modern office market increased during the first quarter of 2026, although volumes remain below levels recorded before the pandemic, according to data from Colliers.

Total leasing transactions reached approximately 51,000 sqm in the first three months of the year, representing a 14 percent increase compared with the same period in 2025. New demand rose by 24 percent year-on-year to around 24,000 sqm, broadly in line with the post-pandemic quarterly average, but still around 30 percent below the average quarterly level recorded between 2017 and 2019.

According to Colliers, the market continues to be influenced by a more cautious economic environment, weaker labour market conditions and subdued hiring intentions, which remain close to their lowest point in the past six years. Consultants noted that ongoing economic and geopolitical uncertainties continue to affect companies’ expansion plans and office space decisions.

Victor Coșconel, Partner and Head of Leasing for Office & Industrial Agencies at Colliers, said the market started the year at a moderate pace, with leasing activity reflecting stabilisation rather than a return to pre-pandemic conditions.

He also noted that limited new office deliveries and reduced availability of well-located Class A buildings are gradually shifting negotiating power towards landlords, contributing to upward pressure on rents.

Colliers stated that its analysis only includes publicly disclosed leasing transactions, such as deals reported through market sources, company financial reports or press releases. The consultancy added that overall market activity is likely higher, as some direct agreements between landlords and tenants are not publicly announced.

The report highlighted that more than one-third of new demand in the first quarter came from companies entering the Romanian market for the first time. According to Colliers, these new entrants accounted for almost 60 percent of the total space leased by new market entrants during the whole of 2025.

The IT&C sector remained the largest contributor to leasing activity, accounting for more than 22 percent of total transacted space. The energy sector followed with nearly 20 percent, while financial services, construction and development, and the public sector each represented between 10 and 15 percent of activity.

One of the transactions referenced by Colliers was the relocation of the Ilfov Tribunal to a modern office building, reflecting increasing interest from public sector institutions in upgraded office accommodation.

Looking ahead, Colliers expects office market performance in 2026 to depend largely on broader economic conditions, corporate hiring strategies and the pace of new project deliveries, while the balance between supply and demand remains relatively sensitive.

Panattoni Begins Construction of Logistics Scheme Near Reading

Panattoni has started construction of Panattoni Park Reading, a speculative logistics development located at Junction 12 of the M4 in the Thames Valley.

The scheme will provide two Grade A warehouse units totalling 106,453 sq ft. The buildings, known as R50 and R56, will offer 50,329 sq ft and 56,124 sq ft respectively, with the option to combine both into a single facility. Completion is scheduled for the first quarter of 2027.

The development is positioned directly alongside the M4 motorway, providing access to a large regional consumer and labour market. According to Panattoni, more than 65 percent of the UK population is reachable within a 4.5-hour drive, while approximately 1.22 million people live within a 30-minute commute of the site.

The warehouse units are being developed with a range of technical and sustainability features, including a secured 1 MVA power connection, 10-metre internal clear heights, 50-metre yard depths and floor loading capacity of up to 50 kN/m². The buildings are targeting BREEAM ‘Outstanding’ certification and EPC ‘A’ ratings.

Planned sustainability measures include rooftop solar photovoltaic panels, rainwater harvesting systems, electric vehicle charging infrastructure and cycle parking facilities.

Will Fennell, Development Manager for South East and London at Panattoni, said the company decided to proceed speculatively due to limited availability of modern logistics space in the Thames Valley market and continued occupier demand along the M4 corridor.

The project is also expected to deliver local infrastructure improvements, including a new public footpath linking Theale High Street with Hoad Way, alongside landscaping works around the site. Panattoni estimates the development could support around 150 jobs once occupied.

CTP Expands Partnership with LEROY MERLIN Romania at CTPark Bucharest West

CTP has signed an agreement with LEROY MERLIN Romania to expand the retailer’s regional distribution centre at CTPark Bucharest West to 48,500 sqm.

The announcement was made during the groundbreaking ceremony for the new build-to-suit logistics facility, which is currently under construction within the industrial park. Delivery is scheduled for February 2027.

LEROY MERLIN Romania, part of the ADEO Group, selected CTP following a competitive pitch process. The agreement strengthens the existing partnership between the two companies and further consolidates CTPark Bucharest West’s role as a major logistics hub in Romania and across Central and Eastern Europe.

The project has been designed around LEROY MERLIN’s operational and technical requirements, with the emphasis placed on flexibility, scalable layouts and customised infrastructure. According to the companies, the solution was selected due to the park’s strategic location, direct access to the A1 motorway, developed infrastructure and potential for long-term expansion.

Ronald Binkofski said the agreement reflects CTP’s ability to tailor logistics solutions to tenant requirements while supporting future operational growth and supply chain optimisation.

Ionuț Vasile added that the new facility will support the retailer’s logistics and fulfilment operations by increasing operational flexibility and capacity.

The warehouse will incorporate a range of technical features intended to improve operational efficiency and safety, including multiple loading chambers configured to the tenant’s requirements, separate circulation areas for passenger vehicles and heavy goods traffic, and upgraded fire protection systems compliant with the latest regulations.

CTPark Bucharest West is located on the western edge of Bucharest with direct access to the A1 motorway, one of Romania’s key transport corridors. The park also benefits from proximity to metro stations including Păcii and Preciziei and includes onsite amenities such as food services, medical facilities, green areas and the Clubhaus community centre developed by CTP.

DIW Study Links Germany’s Record Absenteeism Levels to Respiratory Illnesses and Post-Pandemic Behaviour Changes

DIW Berlin has found that the sharp increase in sickness-related absences among employees in Germany during 2022 was primarily driven by respiratory illnesses and changing attitudes toward working while sick following the pandemic, rather than by the introduction of electronic sick leave certificates.

According to the study by the German Institute for Economic Research, employees in Germany were absent from work for an average of 15 days in 2022, representing a 19 percent increase compared with the previous year and marking the highest level on record.

The rise coincided with the introduction of electronic sick leave certificates, known as eAU, leading to speculation that the increase reflected improved administrative reporting rather than a genuine change in absenteeism levels. However, the study argues that this explanation is insufficient.

Researcher Markus Grabka analysed data from the Socio-Economic Panel (SOEP), which records employee absences independently from official sick leave submissions. While official statistics showed a 32 percent increase in sick leave, the SOEP data still identified a substantial 19 percent rise.

The study highlights respiratory illnesses as the main factor behind the increase. Data from health insurer AOK showed a significant rise in absences linked to respiratory conditions during 2022. Older employees and workers with heightened health concerns were identified as particularly affected groups, both recording above-average increases in sick days.

According to the report, behavioural changes following the COVID-19 pandemic also played an important role. Employees, particularly those considered vulnerable, appear more likely to remain at home when experiencing contagious symptoms than before the pandemic.

The study warns against policy proposals aimed at reducing absenteeism through measures such as cutting continued wage payments during illness or introducing unpaid waiting days. Grabka argues that such approaches could increase “presenteeism”, where employees continue working despite being unwell, potentially worsening health outcomes and spreading illness within workplaces.

Instead, the report recommends exploring partial sick leave systems that would allow employees with milder conditions to continue limited work activity through reduced hours or remote working arrangements. The study also calls for expanded preventative healthcare measures, particularly in the area of mental health, which has become an increasingly important contributor to long-term absenteeism in Germany.

Romania’s Retail Pipeline Remains Strong Despite Slower Start to 2026

Cushman & Wakefield Echinox reports that Romania’s retail market experienced a subdued first quarter in 2026 in terms of new deliveries, although developers continue to advance a substantial pipeline of shopping centre and retail park projects scheduled for completion over the next two years.

According to the firm’s Romanian Retail Marketbeat Q1 2026 report, inflationary pressures and weaker consumer spending affected retail activity during the opening months of the year. Romania recorded inflation of 9.9 percent at the start of 2026, the highest level in the European Union, contributing to a 5.8 percent decline in retail sales in real terms. Non-food sales fell by 9.2 percent, while food, beverage and tobacco consumption decreased by 2.7 percent.

Despite the weaker consumption environment, analysts expect market conditions to improve during the second half of the year as the impact of fiscal measures begins to stabilise and inflation moderates toward an estimated 5 percent by year-end.

Development activity remained limited in Q1, with M Park Titan the only significant retail completion during the quarter. The 8,500 sqm scheme, developed by M Core, represented the largest retail project delivered in Bucharest in the past four years.

At the same time, the longer-term development pipeline remains active, with more than 320,000 sqm of retail space currently under construction across Romania. Approximately 150,000 sqm is expected to be delivered by the end of 2026.

Among the largest projects currently underway or in advanced planning stages are Rivus Cluj, a 142,000 sqm mixed-use retail project developed by IULIUS Group and Atterbury Europe, as well as Galati Retail Park developed by NEPI Rockcastle.

Other notable schemes include the extension of Promenada Mall, the expansion of Palas Iași, M Park Galati, Family Market Tomești, Arena Mall and One Gallery.

Romania continues to offer one of the lowest modern retail densities in Central and Eastern Europe, with approximately 253 sqm of retail space per 1,000 inhabitants, suggesting further room for expansion compared with regional peers.

Dana Radoveneanu said developers remain committed to expanding retail schemes despite ongoing inflationary pressures and softer consumption levels. She added that the current pipeline includes several extensions of existing shopping centres that have already demonstrated strong operational performance in cities including Bucharest, Iași and Bacău.

The report also noted continued growth in Bucharest’s high street segment, with prime rents on Calea Victoriei reaching €90 per sqm per month, reflecting increased retailer demand and the anticipated arrival of additional luxury brands. Prime shopping centre rents in Bucharest and major regional cities remained broadly stable, typically ranging between €50 and €90 per sqm per month for ground-floor units sized between 100 sqm and 200 sqm.

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