Gide Loyrette Nouel and Norton Rose Fulbright extend leases at Metropolitan Warsaw

Two prominent international law firms, Gide Loyrette Nouel and Norton Rose Fulbright, have extended their leases at Metropolitan Warsaw, securing over 3,000 sqm of premium office space in one of the capital’s most prestigious locations. The firms will continue to operate from the iconic building situated on Piłsudski Square for several more years, reinforcing their long-standing presence in Warsaw’s legal and business landscape.

Metropolitan Warsaw, renowned for attracting top-tier brands and industry leaders, will remain the headquarters for both law firms. Joanna Kowalska-Szymczak, founder and CEO of EBRU Capital, which manages the building, expressed her pride in the continued partnership. “We are honored to extend our cooperation with Gide Loyrette Nouel and Norton Rose Fulbright. Their reputation for excellence aligns perfectly with the standards of Metropolitan Warsaw. We are delighted to provide both firms with private, comfortable spaces on the top floors, complete with dedicated terraces that enhance client meetings and employee comfort,” she said.

Gide Loyrette Nouel, a tenant of Metropolitan Warsaw since 2006, has signed a new seven-year lease, continuing to occupy the 6th floor of Building 1. With views over Piłsudski Square, the Raffles Europejski Hotel, and the Presidential Palace, this prime office location has become synonymous with the firm’s Warsaw operations. Colliers International advised on the lease negotiations.

“The 6th-floor office at Metropolitan Warsaw has become a hallmark of our firm. It blends history with modernity, offering proximity to both the business and historical districts of the city. We look forward to continuing our work here, creating a space for collaboration, inspiration, and client meetings,” commented Dariusz Tokarczuk, Partner at Gide Loyrette Nouel.

Similarly, Norton Rose Fulbright has also renewed its lease for another seven years. The firm’s office, located on the top floor of Building 2, offers stunning views of Saski Garden, the National Theatre, and Warsaw’s skyline. JLL advised Norton Rose Fulbright during the lease renewal process.

“We are thrilled to maintain our presence in this prestigious location, which continues to impress our clients and staff alike. Since 2006, this office has provided the perfect environment for our team, combining an outstanding location with excellent amenities. We are eager to continue working from this exceptional space,” said Grzegorz Dyczkowski, Managing Partner of Norton Rose Fulbright.

Metropolitan Warsaw offers 33,600 sqm of top-quality office space, along with 3,300 sqm of luxury retail and service areas. The development includes exclusive boutiques, a fitness club, cafes, and 441 underground parking spaces. The building is also equipped with electric vehicle charging stations and cyclist-friendly infrastructure. Recognized for its sustainable and safety-focused design, Metropolitan Warsaw holds prestigious certifications, including a BREEAM Excellent rating, WELL Health-Safety Rating, and a WiredScore Platinum certification for digital connectivity.

With these recent lease extensions, Metropolitan Warsaw continues to solidify its reputation as one of the most sought-after office spaces in the city, providing a premium environment for leading international firms.

Construction of Designer Outlet Kraków reaches key milestone

Kraków’s highly anticipated Designer Outlet has reached a crucial phase of its development, marking significant progress in the construction of the Małopolska region’s future shopping destination. With earthworks completed, paving of the above-ground car park is now underway, and the underground garage, a central part of the project, has been finished. Installation work is currently ongoing within the garage.

Shoppers will have access to both the underground garage and an above-ground parking area designed to serve the outlet and two retail parks located nearby. This dual parking solution will offer convenience and easy access for visitors, whether they are stopping by the outlet or exploring the broader retail complex.

Interior work on the project has also advanced, with electrical and plumbing systems being installed, while finishing touches are being applied. In the next coming weeks the commercial spaces will be handed over to tenants to begin interior arrangements.

The project aims to create a modern shopping experience, poised to attract both Kraków residents and tourists alike. “We are pleased with the progress and are confident that everything will be completed on time. Designer Outlet Kraków will not only be the city’s main outlet center but also a space for meeting and relaxation. The development is on track, and we eagerly anticipate the opening, which will enhance the region’s retail offering,” said Krzysztof Gaczorek, CEO of KG Group, the developer behind the project.

According to the developer, construction remains on schedule with no expected delays. The facility is set to open in spring 2025, promising to become a major addition to Kraków’s shopping scene.

Piotr Tarkowski appointed President of Dekpol Deweloper, succeeding Sebastian Barandziek

Piotr Tarkowski has been named the new president of Dekpol Deweloper, a key division of the Dekpol Group, replacing outgoing president Sebastian Barandziek, the company announced.

Dekpol SA President Mariusz Tuchlin expressed gratitude to Barandziek for his pivotal role in navigating the company through challenging times, including the COVID-19 pandemic and the war in Ukraine. “Sebastian’s knowledge and dedication were instrumental in securing Dekpol Deweloper’s current market position and its significant contribution to the Group’s overall performance,” said Tuchlin. He added that Tarkowski’s leadership, alongside the committed team, would ensure continued success in maintaining Dekpol’s standing as a leading developer in Poland. The company remains focused on delivering innovative, high-quality solutions to customers while ensuring stable growth for shareholders.

Tarkowski, an economist with 17 years of experience in the residential real estate sector, particularly in the premium and investment segments, brings a wealth of expertise to the role. He has held various directorial positions in real estate, manufacturing, and services, successfully building and managing organizations throughout his career.

Dekpol operates in three main segments: general contracting services, manufacturing of scales and accessories for construction machinery, and real estate development. Listed on the Warsaw Stock Exchange since 2015, the company recorded consolidated revenues of PLN 1.57 billion in 2023.

Source: Dekpol and ISBnews

Brno Diocese invests CZK 2.5 billion in real estate and infrastructure to secure financial future

The Brno Diocese is ramping up its real estate investments, channeling nearly CZK 2.5 billion in 2023 as it prepares for a future without state funding. Facing a gradual reduction in government financial support, the diocese is turning to property development as a key strategy for long-term financial independence. Through its companies, the diocese currently manages the Velký Špalíček department store in central Brno and is constructing production and storage halls in Mikulov, located in the Břeclav region, near the D1 and D2 motorways. Church officials shared the plans with reporters today.

The diocese’s financial turnover, which includes its charitable organizations, schools, and parishes, totals CZK 2.467 billion. The financial outlook is currently in the black, with the diocese receiving CZK 93 million from the state last year for operational purposes.

By 2030, state contributions for operations will cease, and by 2043, restitution payments for property not returned to the church during post-communist settlements will end as well. To ensure financial sustainability, the diocese is focusing on self-management through investments in real estate, stocks, bonds, and business ventures—marking a shift in both strategy and mindset for clergy and parishioners alike.

“I’m not aiming to make the diocese rich, but to ensure it functions effectively,” said Bishop Pavel Konzbul. Unlike other dioceses that received significant forest lands through restitution, Brno received fewer natural resources and has instead focused on diversifying its economic activities.

One of its major real estate ventures is the acquisition of the Velký Špalíček department store, which the church purchased from a private investor. The diocesan real estate company, Urbanon, is also exploring retail projects on church-owned land in rural areas, potentially leasing these developments to retail chains.

In Brno’s city center, Urbanon is spearheading the construction of the Augustin House dormitory on Jaselská Street, although progress has been slowed by a court decision that overturned one of the four building permits. Securing work continues, but full construction is delayed. Additionally, the company is working on transforming the former Voršilek convent and connecting it to Novobranská Street and Roman Square.

“We aim to invest the compensation funds ethically, focusing on diversification in three main areas: industrial, residential, and retail projects,” explained Petr Prokš, chairman of Urbanon’s board.

Looking ahead, the church continues to expect financial support from congregants, donors, and sponsors. “The church has never solely relied on donations but has always engaged in economic activities,” noted Vicar General Pavel Kafka. The diocese also plans to continue utilizing grants from local, state, and other funding sources for the maintenance of monuments, and the operation of schools and social services.

In education, the diocese is investing in expanding school facilities. New vocational classrooms are being constructed at the Bishop’s Grammar School on Barvičov Street in Brno, with plans to increase the capacity of the associated kindergarten. The project’s estimated cost exceeds CZK 100 million.

Source: CTK
Photo: CBRE

Savills Report: Five positive trends driving Warsaw’s office market in Q3 2024

According to Savills’ latest Warsaw Office Market report for Q3 2024, the Polish capital continues to thrive, marked by stable rental prices, a growing demand for flexible office space, and increasing investments in green construction. These positive trends are positioning Warsaw as a regional leader in Central and Eastern Europe, providing a solid foundation for the sector’s future growth. Here are five key insights from the report that highlight Warsaw’s potential.

1. Revival of Pre-Letting and Strong Supply Growth

The Warsaw office market has seen a significant revival in pre-letting activity. In Q3 2024, around 38,600 sq. m. of office space was pre-leased, primarily in central Warsaw locations in projects still under construction. This uptick brought the share of pre-leases to 9% of total office take-up from the start of the year to September.

“Tenants are becoming more optimistic about the business landscape and are more confident in signing pre-leases for modern office space,” said Jarosław Pilch, Director and Head of Tenant Representation at Savills Poland. New buildings are filling the gap left by delayed projects in previous quarters. However, the limited availability of prime office space is creating competition for top-class locations.

By the end of Q3, the market saw 75,000 sq. m. of new office space, surpassing 2023’s total of 61,000 sq. m. Major projects completed this year include the third phase of Lixa (26,300 sq. m.), Saski Crescent (15,500 sq. m.), and Vibe A (15,000 sq. m.), with over 70% of new supply concentrated in central Warsaw.

2. Stable Rents in Prime Locations

Rental rates in Warsaw’s key office districts have remained stable, particularly in the Central Business District (CBD), where prime office space costs between EUR 22.50-26.00 per sq. m. per month. This stability is attracting both domestic and international companies seeking high-quality office space in prestigious locations.

Despite ongoing development and new space coming onto the market, the increasing demand for larger offices in prime areas may push rents higher over the next two years. In non-central areas, however, competition is likely to keep rents steady as tenants seek more affordable alternatives.

3. Growing Demand for Flexible Office Space

Demand for flexible office solutions, including coworking spaces, has surged in 2024, with 22,400 sq. m. leased by operators this year. This trend reflects companies’ shift to hybrid working models and the need for adaptable office space.

While flexible office operators are mainly focused on central locations, building owners in other parts of the city are creating their own coworking spaces to reduce vacancies and offer tenants quick access to additional space if needed.

4. Sustainability Takes Centre Stage for Investors

Sustainability has become a key priority in Warsaw’s office market. Increasingly, new projects are incorporating environmental certifications like BREEAM and LEED, making these buildings more attractive to tenants. Owners of older office buildings are also modernizing to meet new standards, improving energy efficiency and implementing green solutions.

“As long as owners invest in modern, energy-efficient solutions, they can remain competitive in leasing their space,” said Daniel Czarnecki, Director and Head of Landlord Representation at Savills Poland.

5. Continued Demand and Stable Vacancy Rates

Despite challenges, demand for Warsaw office space remains robust. From January to September 2024, 492,200 sq. m. of office space was leased, with high demand coming from the financial, IT, business services, and manufacturing sectors. As one of the key business hubs in Central and Eastern Europe, Warsaw continues to attract tenants with its high-quality office spaces and competitive pricing.

By the end of Q3, the vacancy rate stood at 10.7%, with central areas faring better at 8.9%. Although vacancy rates increased slightly in non-central areas, developers are reactivating previously delayed projects to meet ongoing demand.

Warsaw still the leader

Warsaw’s office market in 2024 is a picture of stability and growth potential. Strong pre-letting activity, stable rents, increased interest in flexible workspaces, and a focus on sustainability are all positive signs for the market’s future. As one of the leading office markets in Central and Eastern Europe, Warsaw continues to attract investors and tenants, positioning itself for continued success.

Brno to borrow Up to CZK 8.8 billion for major investments

The city of Brno is set to borrow up to CZK 8.8 billion to finance a series of major investments planned over the coming years. The city council approved a draft medium-term budget outlook for 2025 to 2029 on Tuesday, which includes preparations for the loan agreement with the European Investment Bank (EIB). The repayment of the loan is expected to begin after 2029.

The borrowed funds will support key infrastructure projects, including the construction of the Janáček Cultural Centre (JKC), a multi-purpose sports hall, flood control measures, and a new retention reservoir. These investments are critical for the city’s future development, according to Brno Mayor Markéta Vaňková (ODS), who spoke to reporters following the council meeting.

Brno has a history of working with the EIB, having secured a CZK 2.5 billion loan in 2005 and an additional CZK 3 billion in 2010. As of the end of 2024, the city’s outstanding debt to the EIB will stand at approximately CZK 1.9 billion. For this year, the city budget includes a short-term loan of CZK 1.1 billion, primarily allocated for the JKC and the multifunctional hall at the exhibition centre.

The new loan of up to CZK 8.8 billion is intended to cover investments between 2025 and 2027. However, Mayor Vaňková noted that the full amount may not necessarily be used, as some planned investments could be delayed. “We will use the maximum credit framework to ensure we can plan for the necessary investments,” Vaňková explained, adding that discussions are ongoing about funding other projects, such as a social and health complex at Červený vrch.

The approved budget outlook indicates that Brno’s debt could rise to CZK 10.2 billion by 2027, approaching the legal limit for municipal debt. Alongside the increase in debt, the city expects operating costs to rise with the new infrastructure, though Vaňková assured that the city is prepared for this. She also pointed to potential relief through new legislation, such as the law on public cultural institutions, which could allow for multi-source funding for cultural organizations.

In terms of revenue, the medium-term budget forecasts CZK 21.5 billion in income for 2025, rising to CZK 22.8 billion by 2029, with expenditures of CZK 24.8 billion in 2025 and CZK 22.5 billion in 2029. From 2026 onwards, the draft does not include significant revenues from the sale of municipal assets, such as apartment buildings, which have been a key source of funding for the city’s Housing Construction Fund.

However, the city has not ruled out selling land at the Technology Park. “We are still debating the future of the Technology Park. No final decision has been made, but I believe the site could be divided into two parts—one for science and research and the other for housing development,” Vaňková said.

Source: CTK

HCLTech extends lease at Kraków’s O3 Business Campus for five more years

HCLTech, a global technology leader, has renewed its lease at Kraków’s O3 Business Campus for another five years, securing over 7,000 square meters of space across four floors in the modern Class A office complex. The transaction, facilitated by real estate consultancy Colliers, reaffirms the attractiveness of O3 Business Campus as a prime business location.

Managed by EPP, O3 Business Campus continues to draw major tenants with its wide range of amenities and sustainable features. The complex is certified BREEAM In-Use at the Excellent level and meets WELL Health-Safety Rating standards, with 100% of its energy sourced from renewables. HCLTech’s decision to stay underscores the campus’s ability to meet the evolving needs of companies focused on digital transformation and IT solutions.

“The renewal of HCLTech’s lease for another five years highlights our commitment to understanding and addressing the needs of our business partners. Sustainability is a priority we share with HCLTech, and our campus is designed to support these values,” said Maciej Sałata, Senior Leasing Manager at EPP. “We also prioritize fostering a dynamic work environment, organizing events that bring people back to the office and create a vibrant community.”

HCLTech, known for providing advanced IT solutions and digital services worldwide, has been a tenant at O3 Business Campus for the past seven years. The company values the complex not only for its office space but for its active community involvement.

“O3 Business Campus is more than just an office for us. Together with the management, we actively support local communities and organize events promoting health and active leisure. These initiatives enhance our work culture and engagement,” added Aneta Dziedzic, PMO & CSR Lead & DEI Champion at HCLTech. “We also contribute outside the office, participating in blood drives and other charitable activities. We’re proud to be part of this living structure.”

The O3 Business Campus, located in the northern part of Kraków at the junction of Opolska Street and 29 Listopada Avenue, is a prominent business hub offering nearly 57,000 square meters of leasable space across three 12-storey buildings. With its high-quality facilities, green spaces, and recreational areas, the complex continues to be a top choice for companies in the region.

“Kraków remains Poland’s largest regional office market, and renegotiations like HCLTech’s accounted for 50% of the demand for office space in the first half of this year,” said Anna Galicka-Bieda, Partner and Regional Director at Colliers in Kraków. “We’re pleased that O3 Business Campus continues to meet HCLTech’s current and future needs after seven successful years.”

As Kraków’s office market remains competitive and robust, O3 Business Campus continues to attract companies looking for top-tier, sustainable office environments that support both business growth and community engagement.

Endava Romania renews lease at UBC Cluj-Napoca in major office market deal

British software services company Endava has renewed its lease for another five years at the United Business Center (UBC) building, part of the Iulius Mall Cluj development. The transaction, brokered by real estate consultancy firm Colliers, involves 4,300 square meters of office space, enabling Endava to strengthen its presence in Cluj-Napoca and continue expanding its local team.

This lease renewal is one of the most significant office deals of the year, reflecting a broader trend in the market where many companies are opting for contract renewals amid uncertainties surrounding hybrid working. Endava, a key player in Romania’s IT sector, has been a tenant in the UBC building since 2013, forming a long-term partnership with developer IULIUS, a major real estate operator in Romania.

IULIUS is known for its large-scale, mixed-use urban regeneration projects across Romania, including Iulius Town Timișoara and Palas Iași, as well as its national network of Iulius Mall centers. The company’s portfolio also includes 15 Class A office buildings, and sustainability is a core focus, with its projects LEED® or EDGE certified.

“Endava sought a location that met its needs in terms of quality, location, and services,” said George Didoiu, Director of Tenant Services at Colliers. “After an in-depth market analysis, Endava decided to remain at UBC, cementing its partnership with IULIUS. Cluj-Napoca’s economic growth, which has been remarkable both nationally and across the European Union, adds to its appeal as a business hub.”

Endava’s decision to renew highlights the demand for high-quality office spaces in Cluj, Romania’s second-largest business center after Bucharest. Cluj has become a base for leading IT companies and is increasingly attracting real estate investors. The deal also reinforces IULIUS’s reputation for offering office spaces that integrate seamlessly with retail and recreational areas.

Silviu Băbțan, Office Buildings Manager at UBC Cluj, emphasized the importance of the continued partnership with Endava: “We are proud that Endava has chosen our offices in all cities where we operate UBC centers—Iași, Cluj-Napoca, and Timișoara. Our ongoing collaboration for another five years confirms the quality and uniqueness of our offices. The integration of workspaces with diverse services, from dining and social facilities to parks and medical services, ensures a high level of satisfaction for employees.”

The renewal reflects broader trends in Romania’s office market. Roughly half of the leases signed in the first half of 2024 were renewals, compared to a pre-pandemic average of 28%. Although hybrid working has led some companies to reduce office space, the feared “office apocalypse” has not materialized.

“Cluj-Napoca’s office market remains stable and mature, with vacancy rates below 3% in premium locations,” added Didoiu. “The city continues to meet the high standards demanded by tenants, maintaining stability in its real estate sector and ensuring that large tenants retain their spaces.”

Endava’s lease renewal signals confidence in both the company’s long-term growth and the strength of Cluj-Napoca’s office market.

Photo: George Didoiu, Director of Tenant Services at Colliers

Parker Lane Poland joins tenants at MLP Pruszków I logistics center

Parker Lane Poland, an international leader in comprehensive resale solutions for the fashion and off-price industries, has leased approximately 3,600 square meters of space at the MLP Pruszków I logistics center. The company is set to move into the facility within the next few weeks, with the transaction facilitated by Triflow agency.

Parker Lane Poland will utilize over 3,200 square meters for warehousing and an additional 344 square meters for office and social areas. The warehouse space is expected to be fully operational by mid-November, while the office areas will be ready by March 2025. This marks a significant milestone for Parker Lane, as the company expands its operations within Poland’s booming logistics market.

Parker Lane specializes in managing the resale of excess production, consumer returns, and online returns within the fashion industry. The company offers a seamless and transparent supply chain for well-known brands, with both direct-to-consumer (D2C) and business-to-business (B2B) strategies designed to maximize resale value.

Tomasz Pietrzak, Leasing Director at MLP Group S.A., commented: “MLP Pruszków I is one of our flagship projects, and despite being completed many years ago, it remains a highly sought-after location. The facility is regularly modernized and meets the highest standards we offer in Poland and abroad. It’s rare to have available space, as the center is almost always fully leased.”

Miłosz Borkowski, Business Development Director at Triflow, added: “We are thrilled to have helped Parker Lane find the ideal warehouse space. The facility not only meets all their technical requirements but also offers excellent accessibility for employees, optimizing business processes and supporting the company’s growth.”

MLP Pruszków I, located just 19 kilometers from Warsaw, is one of the most popular logistics centers in Poland. Spanning nearly 170,000 square meters, the center is home to almost 40 tenants from various industries. Over the past 20 years, the site has developed into a fully functioning logistics hub, featuring its own internal infrastructure, including electric vehicle charging stations powered by photovoltaic energy, and a city bike rental station.

MLP Group’s “build & hold” strategy ensures that all completed logistics parks, including MLP Pruszków I, remain in its portfolio for long-term management. The group’s logistics parks are known for their strategic locations, tailored build-to-suit solutions, and dedicated tenant support throughout the lease term.

Parker Lane’s move into MLP Pruszków I reflects the continued growth of the logistics and warehousing sector in Poland, driven by the expansion of e-commerce and the increasing need for flexible, high-quality storage solutions.

International Workplace Group expands hybrid workspace in Budapest with new Regus office

International Workplace Group (IWG), has announced the opening of a new Regus office in Budapest. As the demand for hybrid working continues to grow in Hungary, IWG’s latest addition, Regus Madarász, is set to provide a range of top-tier facilities, including co-working spaces, private offices, meeting rooms, and creative areas, catering to both start-ups and established businesses.

The new workspace is located in the 13th district, just outside the bustling central business area, expanding Budapest’s Váci út office corridor. This strategic location is part of IWG’s response to the rising demand for flexible work environments, as businesses increasingly embrace hybrid working models. This opening follows a successful partnership with Proform Ingatlanbefektetési Zrt., marking the third collaboration between IWG and the property investment group.

Mark Dixon, CEO and Founder of International Workplace Group, highlighted the significance of the new location: “Budapest is a key business hub, and we’re thrilled to expand our presence here. As hybrid working becomes the new normal, the need for high-quality flexible workspaces has never been greater. This partnership with Proform Ingatlanbefektetési Zrt. allows us to further develop the Regus brand and offer cutting-edge workspaces to meet growing demand.”

The launch of Regus Madarász comes on the heels of IWG’s record-breaking first half of 2024, during which the company signed 465 new locations globally and posted its highest-ever revenue, cash flow, and earnings growth. IWG’s flexible workspace solutions have surged in popularity as businesses seek to reduce traditional office space and adopt hybrid models that offer cost savings and increased flexibility.

The new Regus office features IWG’s “Design Your Own Office” service, allowing tenants to customize their workspaces to suit specific needs. In addition to offering flexible leases, tenants will benefit from IWG’s technology platform, which integrates sales, marketing, and design support to maximize real estate returns.

As Béla Szamosváry, a representative of Proform Ingatlanbefektetési Zrt., expressed: “We are delighted to partner with IWG to bring a premium hybrid working facility to the 13th district. The demand for top-quality workspaces in this thriving area has grown significantly, and this partnership ensures we can meet those needs effectively.”

IWG is the global leader in flexible workspaces, with over 4,000 locations in more than 120 countries. As businesses worldwide transition to hybrid work, IWG’s rapid expansion is set to continue, with projections suggesting that 30% of commercial real estate will be dedicated to flexible workspaces by 2030. The shift away from traditional office models has positioned IWG to capitalize on a market with an estimated value of more than $2 trillion.

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