European Office Markets Face Pressure to Adapt as Occupier Demands Shift

The latest CBRE survey highlights the persistent gap between employer requirements and employee office attendance across Europe. While more than half of companies expect staff to work in the office at least three days a week, only 42 percent report that this level of attendance is achieved. The survey, which involved 117 European firms including those in the Czech Republic, illustrates the challenges organisations face in balancing hybrid work with workplace strategies.

The financial services sector shows the widest disparity, with 61 percent of firms demanding attendance three days a week but only 32 percent of employees complying. Simon Orr, Head of Tenant Representation at CBRE Czech Republic, explained that employees often avoid offices that feel half-empty, creating a cycle in which absence reduces workplace appeal. Average office utilisation across the week stands at 46 percent, rising to 71 percent on peak days, and technology companies in particular have seen higher use as work-from-home policies tighten.

One of the most significant developments is the growing demand for flexible office solutions. By 2027, companies expect these to account for nearly a third of their portfolios, up from just over a fifth today. The main motivation is the ability to adjust space without heavy upfront costs, as well as to align more closely with hybrid working patterns. CBRE also found that the traditional model of assigning one desk per employee is disappearing rapidly, with far fewer companies planning to maintain it in the coming years. According to Helena Hemrová, Head of Office Leasing at CBRE Czech Republic, firms are increasingly measuring the return on their office space in terms of occupancy, employee satisfaction, costs, and environmental performance.

JLL’s recent European outlook reinforces CBRE’s findings, noting that while companies remain cautious, leasing activity is improving as occupiers seek to secure suitable space in competitive markets. Cushman & Wakefield adds a sharper warning, pointing out that more than 70 percent of Europe’s office buildings could be obsolete by 2030 without substantial upgrades. With much of the stock more than 30 years old and only a small fraction modernised in the past decade, landlords face rising pressure from occupiers and regulators to deliver sustainable and flexible buildings.

Although office space reductions have dominated in recent years, CBRE notes that the trend is easing, with fewer companies planning further cuts and some beginning to expand again. Yet occupiers looking to relocate are increasingly concerned about whether high-quality offices in desirable locations will be available, particularly as public transport access and sustainability credentials remain top priorities. Analysts suggest the European office market is entering a stabilisation phase, with demand consolidating around modern, efficient and well-connected space, while outdated properties face growing risk of declining value.

Source: CBRE, JLL and Cushman & Wakefield

Local Capital and Retail Assets Drive Romania’s Property Market

Amid shifting economic conditions and heightened geopolitical uncertainty across Europe, Romania’s real estate market has continued to demonstrate resilience, particularly in retail and logistics. In this CIJ EUROPE Q&A, Costin Nistor, Managing Director of Fortim Trusted Advisors, shares his insights on how investors are navigating slower GDP growth, persistent inflation, and evolving fiscal policies. He discusses the sectors showing the strongest fundamentals, the balance between international and local capital, and what to expect from the investment pipeline in the second half of 2025.

Q: Romania’s GDP growth has been revised lower, and inflation remains relatively high compared with Western Europe. How are these macroeconomic conditions influencing investor appetite and deal structuring in Romania’s commercial property market?

Costin Nistor: Romania is going through a period of fiscal and legislative changes with little concern from the authorities about stimulating economic growth. These measures overlap with a period of economic difficulties for the whole of Europe, triggered by geopolitical uncertainties, global commercial tensions, and rapidly changing business models. That said, groups operating in Romania are keeping a vigilant eye on opportunities that arise during such times.

The past few months have brought encouraging signs, suggesting that the economy may be on a slow path to recovery. In H1 2025, total real estate investments in Romania reached EUR 431.3 million, signalling strong market performance. The office sector led the charge, attracting EUR 189 million in investment, with the retail sector not far behind at EUR 179 million in transaction volume.

The retail market, particularly retail parks in regional cities, has shown remarkable resilience and growth, continuing to captivate investor attention. This sustained demand is supported by rising consumer spending in these regions and a growing preference for shopping destinations that combine convenience with experience. Retail assets are proving to be a solid investment, offering a reliable income stream and long-term potential.

Looking ahead, several high-profile transactions are in progress in the retail sector, suggesting that this trend will accelerate. By the end of 2025, experts forecast that retail is likely to surpass the office sector and become the dominant asset class in terms of total transaction volume. This shift is being driven by favourable market conditions, regional economic growth, and a marked preference for mixed-use developments.

As retail continues to gain traction, investors are expected to diversify further, capitalising on opportunities across both urban and regional markets. With strong fundamentals supporting the segment, it is well positioned to become the leading force in Romania’s real estate market.

Q: Prime yields in Romania remain significantly higher than in other CEE capitals. How do you see yield levels evolving across office, retail, and industrial in the next 12–18 months, and are they aligned with investor return expectations?

Costin Nistor: On one hand, we see upward pressure on yields, while the shortage of new projects tends to counterbalance this, at least for a while. In the medium term, we estimate that the gap in expectations has a chance of being filled, moving closer to the views of the more liquid buyers.

Q: Beyond the headline deals in retail parks and logistics, we’ve seen office transactions like Victoria Center and Ethos House, as well as industrial assets changing hands. Which of these sub-sectors do you think signals the most sustainable recovery for Romania?

Costin Nistor: Although we had a significant volume of office transactions, each of these deals was based on specific reasons and does not necessarily reflect the broader market trend. By contrast, investors’ appetite for retail projects, especially retail parks, reflects a general trend noticeable not only in Romania but across the CEE and EU regions. While the office sector may still generate transactions, it will remain under pressure for a longer time. Therefore, we believe the retail and industrial sectors have the best chance of remaining investors’ favourites.

Q: International investors represented more than half of H1 2025 volumes, but domestic players such as Paval Holding remain very active. Do you expect the balance between foreign and local capital to shift in the near term?

Costin Nistor: It is difficult to attract new investors to the current Romanian market. Therefore, we believe local capital, which has represented a significant share of investment volume in the past few years, will continue to be the most active in the near term.

Q: Looking ahead to the second half of 2025, what is your expectation for the investment pipeline—are we likely to see more hotels, retail, or office assets come to market, and what will be the key factors determining whether these deals close?

Costin Nistor: As mentioned, retail has strong fundamentals to remain attractive, while the office sector has a sizable pool of investment product, so it is likely to generate some deals. The hotel segment may also see a slight increase, as consolidation in this sector seems to be the next natural step, supported by the recovery of both business and leisure tourism. Industrial remains underpinned by good fundamentals, but in Romania it is dominated by long-term owners and operators, meaning the market offers relatively few investment products.

Mitzilinka: The Great Parking Ballet at Galeria Mokotów

It was supposed to be simple: park the car, buy the socks, leave the car. Yet somehow, Westfield Mokotów has transformed this three-step dance into a full-scale theatrical production, complete with new choreography, ticketless technology, and an unsuspecting audience of motorists pressed into leading roles.

They call it “improved circulation.” I call it The Great Parking Ballet.

On ul. Rodziny Hiszpańskich, a name that once sounded like a street, now more like a riddle, one gate is now only for entry, the other only for exit. Choose wrong, and you pirouette straight out of the performance before Act I begins. Local drivers tell tales of searching for the –1 level like Odysseus seeking Ithaca, only to find themselves spat back onto Warsaw’s streets, baffled and ticketless, humming “Where did I go wrong?”

The mall promises a sleek ticketless system, cameras that recognise your license plate like paparazzi lying in wait at a red carpet. But in practice, some shoppers report a less glamorous welcome: machines sulking, cards refusing to swipe, and readers misbehaving as though allergic to Polish number plates. Nothing screams “modern convenience” quite like arguing with a metal box while an impatient line of honking cars builds behind you.

And of course, the beloved shortcuts through the mall’s grounds have disappeared. Transit to Al. Wilanowska is now a privilege reserved for those escaping the mall’s gravitational pull. For everyone else, it’s detour time, with drivers circling like bewildered actors who have missed their cue.

Meanwhile, the mall’s PR beams about two hours free, three if you’re a Westfield Club member, and a cap of seventy złoty a day. It’s lovely math, unless you’re the poor soul circling round and round, never actually making it into the car park in the first place. Free hours don’t mean much when you’re rehearsing U-turns outside.

Still, there is an odd solidarity in confusion. On social media, strangers bond over stories of missing entrances, bungled exits, and near-mythical-1 ramps. It is the sort of collective bewilderment that makes you laugh, because the alternative is crying into your shopping bags.

So if you are heading to Westfield Mokotów, take a deep breath, accept that you are now part of the Ballet, and remember that sometimes in Warsaw parking is no longer a mundane errand, it is an art form.

Author: Mitzilinka (Turning grim reality into comic relief—without losing the truth)

Major Food Retailers in Slovakia Strengthen Market Positions

Slovakia’s food retail market continues to be shaped by three international chains – Lidl, Kaufland, and Tesco – which together employ tens of thousands of people and account for a large share of household spending. Each has a distinct business model, but all three now play an important role not only as retailers but also as employers, taxpayers, and partners to local suppliers.

A recent independent analysis commissioned by Lidl suggested that the discounter generates more than €2 billion in combined economic value for the Slovak economy each year. This figure includes its direct activities, payments to the state budget, wages for employees, and contracts with suppliers. Lidl operates 175 stores, three distribution centres, and employs more than 6,500 people across 77 districts, making it one of the country’s largest private sector employers. The company has also invested steadily in social and community initiatives alongside its core business.

Kaufland, which is part of the same German parent group as Lidl, follows a different model with larger-format hypermarkets. It has about 70 stores in Slovakia and a workforce of roughly 6,000. In 2023, it reported turnover above €1.5 billion, making it the second-largest chain by revenue. Kaufland positions itself as a supporter of Slovak producers, often highlighting its share of domestic goods on shelves. Its financial results for 2024 showed both revenue growth and rising profitability, confirming strong consumer demand in spite of inflationary pressures.

Tesco, the British retailer, has been present in Slovakia since the 1990s and operates more than 150 outlets ranging from hypermarkets to smaller supermarkets. While its revenue base remains solid, profit margins have been under pressure, reflecting higher operating costs. Tesco has also been repositioning its store formats in recent years, with an emphasis on convenience stores in urban areas. Despite these adjustments, the company remains a significant employer and one of the largest food retailers in the country.

The three groups collectively dominate Slovakia’s organised food retail sector, but they are also important beyond their direct commercial activity. Through supply contracts, they provide distribution opportunities for Slovak producers, particularly in the agri-food sector. Lidl’s position within an international network has helped local suppliers expand abroad, while Kaufland stresses its role in promoting Slovak brands domestically. Tesco, meanwhile, leverages its multinational scale to bring new product ranges into the local market while maintaining links with domestic producers.

Taken together, Lidl, Kaufland, and Tesco illustrate the extent to which international food retailers have embedded themselves into Slovakia’s economy over the past two decades. While their competitive strategies differ, all three have become fixtures of everyday life for consumers and major contributors to employment, taxation, and supplier networks. With consumer habits shifting and inflation shaping purchasing power, the ability of these chains to balance cost efficiency with support for local supply chains will remain central to their role in the Slovak economy.

Smart Housing Projects Gain Momentum Across Central Europe

Brno’s Edison House, a recently completed residential scheme in the Bohunice district, highlights how Central Europe’s housing market is steadily embracing smart technology at a building-wide scale. The development integrates a full automation system coordinating renewable energy sources, shading, ventilation, and access control. Alongside comfort and safety features, the technology is designed to deliver measurable energy savings for residents, while preparing the building for future trends such as electric mobility.

Similar approaches are emerging across the region. In Prague, the Fragment complex in Karlín has set a benchmark for rental housing with integrated automation across all apartments, while other capital-city projects are upgrading existing blocks with smart entry and lighting systems. Warsaw has seen new residential estates adopt platforms like Grenton to manage climate and lighting, with developers increasingly using “smart” features as a selling point for both owner-occupiers and investors.

Budapest, meanwhile, is advancing larger-scale estates where automation is paired with energy-efficient systems such as ceiling-based heating and cooling. Some projects are specifically marketed around the combination of “green and smart” living, aiming to balance affordability with the growing expectations of younger buyers. Vienna’s Aspern Seestadt, a major urban extension, demonstrates what can be achieved at district level, where entire neighbourhoods use shared energy management systems to integrate photovoltaics, heat pumps, and storage technologies.

What sets Edison House apart is the depth of its integration. Rather than offering individual apartments with optional smart packages, the entire building is designed around automation as a core operating layer. This allows renewable energy, shading, and climate systems to be coordinated for maximum efficiency. Safety measures, such as keyless entry and automated leak detection, extend the appeal to residents who value practical security alongside lower running costs.

Across Central Europe, the direction is clear: smart features are shifting from niche extras to baseline expectations. For developers, the challenge will be less about adding individual gadgets and more about embedding whole-building management systems that deliver long-term savings and sustainability. Edison House, together with other pioneering projects in Prague, Warsaw, Budapest, and Vienna, shows that this transformation is already underway.

BEOS AG Acquires 85,000 sqm Commercial Site in Neuss from Aurelis Real Estate

BEOS AG has purchased an 85,000 square metre commercial site in Neuss from Aurelis Real Estate for its newly launched special fund, BEOS Corporate Real Estate Fund Germany V (BEOS CREFG V). The property, situated between Jagenbergstraße and Blindeisenweg, comprises six buildings with nearly 40,000 square metres of rental space, including 29,000 square metres of warehouse and 11,000 square metres of office space. It is currently leased to 24 tenants, with a reported occupancy rate of 96 percent.

The acquisition marks the first transaction for BEOS CREFG V, which was launched in July and has a target investment volume exceeding €600 million. The fund focuses on multi-tenant commercial properties in established and growing locations across Germany. Classified under SFDR Article 8, the fund integrates environmental and social considerations into its investment strategy. Fund management is overseen by Swiss Life Kapitalverwaltungsgesellschaft mbH (SL KVG), while BEOS AG acts as the asset manager.

“The rapid acquisition of this property underlines the attractiveness of the fund and reflects our strategy to identify resilient, high-quality assets in dynamic regions,” said Michael Kapler, Executive Board member of BEOS AG and Head of Portfolio Management at Swiss Life Asset Managers in Germany.

Jochen Butz, Head of Real Estate Development Light Industrial & Commercial Region Cologne at BEOS AG, highlighted the site’s location advantages and flexibility: “With its strong transport connections near Düsseldorf, sustainable orientation and adaptable building structures, the property offers significant long-term potential.”

The seller, Aurelis Real Estate, did not disclose the purchase price.

First Property Group sells Dr. Felix 87 office building in Bucharest to Bucur S.A.

First Property Group has sold the Dr. Felix 87 office building in Piața Victoriei, Bucharest, to Bucur S.A., a company listed on the Bucharest Stock Exchange. Colliers acted as the exclusive sell-side advisor.

“Colliers acted as the sell-side advisor for this transaction, which closed on October 1, 2025. The deal highlights the growing interest of locally listed companies in income-generating real estate assets and confirms the appeal of well-positioned office buildings in established Bucharest submarkets. We are pleased to have supported First Property Group throughout this process and to have contributed to the successful completion of a deal that brings a Romanian investor such as Bucur S.A. into the spotlight. The market remains active and diverse, with sustained appetite for well located assets,” said Simina Niculita, Director | Partner | Retail Agency at Colliers.

The Dr. Felix 87 building provides 2,850 square metres of office space, fully leased to consultancy firm Vulpoi & Toader Management. Completed in 2006 and acquired by First Property Group in 2007, it is located in one of the city’s most established office areas.

Prague and State Agree on Land Transfer in Letňany for Housing and Hospital Development

Prague and the state have reached an agreement on the transfer of extensive land near the Letňany metro station, paving the way for major housing construction and a new hospital. Finance Minister Zbyněk Stanjura and Prague Mayor Bohuslav Svoboda, both from ODS, announced the deal following government approval earlier this week.

Under the plan, the state will transfer approximately 120,000 square metres of land to the city, while an additional 30,000 square metres will be made available for purchase. The land had previously been earmarked as a potential site for a government office complex during the last parliamentary term under former Prime Minister Andrej Babiš, a plan the city opposed.

In exchange, Prague has committed to developing affordable housing, civic facilities and public infrastructure. The state will secure land near the metro station for the construction of a modern hospital, a project considered a key element of the agreement.

Deputy Mayor Alexandra Udzeniya (ODS) said the city envisions a new district providing homes for up to 50,000 people. “Prague urgently needs new housing, particularly affordable rental apartments – not only for young families or essential professions, but for all residents,” she said. The plan also includes schools, healthcare and social services, jobs, green spaces, and other amenities.

The Letňany area, currently a mix of state, municipal and private land, has already attracted interest from private developers such as PPF and Kaprain, who are planning projects near the existing airport. The Letňany metro station, opened in 2008 as the terminus of line C, lies outside current residential development but is expected to become a hub of the new district.

Minister Stanjura described the government’s decision as a crucial step forward. “This agreement provides the foundation for the state to build and operate the future hospital while enabling Prague to address its acute housing shortage,” he said. Mayor Svoboda called the decision a turning point, bringing clarity after years of debate and shelving previous proposals.

Source: CTK

Consumers in Czechia Can Terminate Contracts if Energy Suppliers Lack Secured Supply

Households and small businesses in Czechia can now withdraw from fixed-price electricity or gas contracts if their supplier has not secured at least 70 percent of expected consumption. The new rule comes into effect with an amendment to the Energy Act and is designed to increase consumer protection following past supplier failures.

Under the amendment, energy traders are required to publish a so-called “security index” twice a year. The index shows what proportion of their customers’ consumption they have purchased in advance, giving consumers greater transparency when choosing a supplier. If a supplier does not publish the index on time or fails to meet the 70 percent coverage requirement, customers are entitled to terminate their contracts.

“The security index is a simple figure with two benefits. Consumers can use it as an additional factor when deciding whether to change suppliers, and they also gain protection if their supplier does not have sufficient energy secured,” said Markéta Zemanová, a member of the Energy Regulatory Office (ERÚ) board.

The index must be published by the end of March and September each year, both on the supplier’s website and with the ERÚ. The measure was introduced partly in response to the collapse of Bohemia Energy in 2021, when the company exited the market amid soaring energy prices after failing to secure adequate supply.

According to ERÚ, the new system is intended to strengthen trust in the retail energy market and reduce risks for households and small businesses relying on fixed-price contracts.

Source: CTK

Slovakia Prepares to Introduce Equal Pay Act from June 2026

The European Union’s Pay Transparency Directive, adopted in 2023, will require all member states to strengthen their rules on equal pay by 2026. The legislation aims to ensure that men and women receive equal pay for equal work, addressing persistent wage gaps through mandatory reporting, transparency rules, and enforcement mechanisms. With less than a year until the directive must be fully transposed, EU countries are at very different stages of readiness. A comparison across Central, Eastern, and Western Europe reveals diverse approaches, from building new systems to tightening already-established frameworks.

Slovakia is preparing for the most significant shift. A draft Equal Pay Act published in September 2025 is scheduled to take effect on 1 June 2026. It introduces the country’s first structured system of pay transparency, applying to both public and private sectors. Employers with over 100 employees will need to submit regular pay gap reports, and workers will gain the right to request information on average salaries of colleagues in comparable positions, broken down by gender. Gaps exceeding 5 per cent that remain unjustified for more than six months will trigger mandatory corrective actions. The Labour Inspectorate will enforce the law, with fines of up to €4,000 for non-compliance. The move is considered essential in Slovakia, which has one of the EU’s largest gender pay gaps.

Poland currently lacks a dedicated framework beyond general anti-discrimination provisions in the Labour Code. Proposals for pay transparency measures have circulated in recent years but have not advanced. To meet EU requirements, Poland will need to adopt legislation introducing structured reporting and salary transparency in recruitment. Trade unions and advocacy groups are pushing for stronger rules, but business associations have warned of administrative burdens for small and medium-sized enterprises. Debate is expected to intensify in 2026 as the transposition deadline approaches.

Czechia has taken some preparatory steps, with government discussions underway on draft legislation to transpose the directive. Current rules are limited to general equality principles under the Labour Code, leaving significant gaps on pay reporting. The proposed changes are expected to introduce employee rights to request pay data, mandatory reporting for companies above a 100-employee threshold, and sanctions for unjustified wage gaps. Analysts expect Czechia to align closely with the directive without adding stricter national requirements, in order to balance compliance with administrative feasibility for employers.

Hungary also relies primarily on existing anti-discrimination laws, with no specific pay reporting obligations in place. Experts note that Hungary has one of the widest gender pay gaps in the EU, making the directive’s transposition particularly significant. New legislation is expected to include rules on salary disclosure in job adverts and periodic gender pay gap reporting for large employers. Political debate has been limited so far, but implementation by 2026 will be mandatory.

Romania has had equality legislation since 2002, but enforcement has been weak and practical pay transparency tools are absent. To comply with the directive, the government is expected to introduce reporting obligations for larger employers and strengthen employee rights to request pay data. Advocacy groups are lobbying for robust enforcement, given Romania’s persistent structural inequalities in the labour market.

Germany already has a law in place, the Transparency in Wage Structures Act of 2017, which gives employees in firms with more than 200 staff the right to request pay information. However, its impact has been limited, as reporting is voluntary for many firms and enforcement mechanisms are weak. To meet EU standards, Germany will need to lower the reporting threshold to 100 employees and introduce stricter sanctions. Legal experts expect amendments in the coming months to close these gaps.

France, by contrast, has one of Europe’s strictest systems. Since 2018, companies with more than 50 employees have been required to publish an annual “Professional Equality Index,” which scores them on pay gaps, promotions, and gender representation. Non-compliant companies face fines of up to 1 per cent of payroll. France is expected to refine the index further to align with the EU directive, adding requirements such as salary range disclosure in job postings and more detailed reporting.

Taken together, these examples highlight the uneven landscape across Europe. Western countries such as France are largely refining existing systems, Germany is adapting its 2017 law to EU standards, while much of Central and Eastern Europe — including Slovakia, Poland, Czechia, Hungary, and Romania — is building new frameworks from the ground up.

The EU directive’s 2026 deadline leaves little time for governments to act. Employers across the continent will soon face tighter obligations, from publishing pay ranges in job advertisements to reporting gender pay gaps and correcting unjustified disparities. For workers, the reforms promise greater transparency and tools to challenge unfair practices.

While implementation challenges will differ, the underlying objective is clear: to move from declarations of equality toward measurable action. As the directive reshapes workplace rules across the EU, the coming years will test how effectively governments and employers can bridge the gap between principle and practice.

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