Swedish Logistics Investment Rebounds While Occupier Market Remains Selective

Sweden’s industrial and logistics property market recorded a sharp recovery in investment activity during the second quarter of 2026, even as leasing volumes remained well below last year’s level and vacancy stayed elevated. The contrasting trends suggest that capital is returning to the sector faster than the underlying occupational market is recovering.

Industrial and logistics transactions reached approximately SEK 19.5 billion in Q2, an increase of 132% compared with the same quarter of 2025. The number of completed deals rose 31% to 51, while logistics and industrial properties accounted for around a quarter of all Swedish commercial property investment during the period.

The increase formed part of a broader rebound in Swedish real estate transactions. Total investment across all property sectors reached around SEK 80 billion during Q2, representing a 146% year-on-year increase. Industrial and logistics emerged as the country’s second-largest investment segment during the quarter.

Despite the scale of the recovery, international capital played a relatively modest role. Cross-border investment into Swedish industrial and logistics property amounted to approximately SEK 1.8 billion, equivalent to just 9% of the sector’s quarterly transaction volume.

Several sizeable portfolio transactions contributed to activity. Areim acquired 33 warehouse and light-industrial properties across Greater Stockholm and Uppsala, comprising approximately 110,000 sqm and around 135 tenants. NP3 entered the Trestad region through the purchase of 23 predominantly industrial properties in southern Sweden from Anguli Fastigheter for around SEK 1.2 billion, covering approximately 141,000 sqm.

Another transaction saw Ryk Group acquire 15 light-industrial properties from Leje Fastigheter for approximately SEK 1.3 billion. Thirteen of the properties are in Stockholm and two in Gothenburg. Together, the deals indicate particularly strong investor interest in established warehouse and light-industrial portfolios combining location, occupancy and diversified income.

The occupier market presents a different picture. Leasing activity amounted to approximately 115,000 sqm in Q2 2026, compared with 208,000 sqm during the same period last year. While this represents a substantial year-on-year decline, activity remains considerably above Q2 2024, when only 24,000 sqm was recorded.

Large occupiers are nevertheless continuing to commit to new facilities. Sports and cycling retailer Spobik agreed a ten-year lease for a new 21,600 sqm property in Jönköping, while PostNord committed to approximately 15,000 sqm for a new parcel and pallet terminal in Timrå. Essity signed for approximately 22,800 sqm in Falkenberg, with the property subsequently due to expand to around 30,000 sqm.

These transactions indicate that demand has not disappeared, but it has become concentrated around occupiers with clearly defined long-term requirements. That distinction is important when considering the investment market’s rapid recovery.

Sweden’s stock of higher-quality logistics properties of at least 5,000 sqm stood at approximately 15.8 million sqm at the end of Q2. Vacancy was 9%, while net absorption reached 137,000 sqm. Stockholm prime rents remained at SEK 1,250 per sqm annually, unchanged from a year earlier.

Supply could create additional pressure during the remainder of the year. Approximately 99,000 sqm was completed during Q2, spread across five developments, with 28% delivered speculatively. Another 305,000 sqm is forecast for completion during Q3, substantially increasing the amount of recently developed space competing for occupiers.

Around 62% of the speculative space expected to complete during 2026 is scheduled for the second half of the year. This could place additional upward pressure on vacancy before occupier demand has fully recovered. Total development for the year, however, is expected to remain approximately 24% below the five-year average, suggesting that the supply cycle is already beginning to moderate.

The combination creates an unusual point in Sweden’s logistics property cycle. Investors are deploying significantly more capital at a time when leasing remains weaker than a year ago, vacancy is relatively high and another wave of speculative space is approaching completion.

Financing conditions appear to be part of the explanation. The research points to strong lender interest and increased competition between financiers as supportive factors for transaction activity during the second half of 2026.

Pricing is also showing signs of improvement at the prime end. The report places Gothenburg’s prime logistics yield at 4.80%, with a quarterly compression of 10 basis points. This suggests investors are again willing to accept slightly lower returns for the strongest properties even before the occupier market has completely normalised.

The divergence between investment and occupational conditions will be important during the remainder of 2026. If leasing strengthens while development slows, today’s investors could be positioning themselves ahead of improving fundamentals. If occupier demand remains subdued, however, the arrival of additional speculative space could prolong competition between landlords and restrict rental growth.

Sweden’s logistics market is therefore not experiencing a straightforward boom. Instead, capital markets appear to have entered the recovery phase ahead of occupiers, with investors increasingly willing to buy well-located, income-producing industrial and logistics assets while the leasing market continues to work through vacancy and new supply. The second half of 2026 will show whether that investment confidence is an early indicator of a broader recovery or whether the gap between property capital and occupier demand still has further to run.

New York Property Market Accelerates as Scarcity Returns to Prime Locations

fletcher@cijeurope.com
27 August 2026
Finance, Market Report, Office, Residential, Retail

New York’s commercial property market gathered momentum during the second quarter of 2026, with stronger office demand, shrinking choice in Manhattan’s best retail streets and a noticeable return of investment capital. Yet the recovery is far from uniform. The city is increasingly becoming two property markets: one where high-quality buildings are becoming difficult to secure and another where ageing or poorly positioned assets still face considerable challenges.

The change is particularly visible in Manhattan offices. Around 7.9 million square feet of leasing was completed during the second quarter, taking activity for the first six months of the year to almost 14.9 million square feet. Available space across Manhattan fell to approximately 14.4%, compared with 17.5% a year earlier, while occupied space increased by roughly three million square feet during the quarter.

Rental expectations are also moving upwards. Average advertised Manhattan office rents reached just over $80 per square foot per year during Q2, rising from both the previous quarter and the corresponding period of 2025. This improvement does not mean that every office building is benefiting equally. Companies are increasingly concentrating their searches on newer or extensively refurbished properties with attractive amenities, efficient layouts, strong transport connections and better environmental performance.

That preference has created an unusual situation in which New York can simultaneously have substantial office space available and a shortage of the accommodation that major companies actually want. In the best Midtown buildings, vacant space has become exceptionally scarce, with the premium end of the district recording vacancy of only around 2.2% during the quarter.

Midtown remained the largest centre of office activity, generating approximately 4.6 million square feet of leasing during Q2. Available space declined to around 12.7%, while average advertised rents climbed above $86 per square foot annually. For owners of the strongest buildings, this combination of declining availability and sustained occupier demand is beginning to restore pricing power.

Downtown Manhattan also recorded a substantial improvement. Leasing exceeded one million square feet during the quarter, while available space declined to approximately 16.6%. The amount of occupied office space increased considerably as well. Some of the improvement reflects older buildings being removed from the conventional office inventory for redevelopment or alternative uses, but this process itself is helping the market by gradually reducing the surplus accumulated during the years following the pandemic.

Conditions outside Manhattan remain more complicated. Brooklyn office vacancy fell below 20% during Q2, reaching its lowest level for approximately six years, while quarterly leasing improved sharply. However, activity during the first half of 2026 remained below the comparable period of last year and advertised rents declined. The borough therefore demonstrates how falling vacancy does not necessarily translate immediately into stronger rental growth.

New York’s retail property market is producing an even clearer scarcity story. Across Manhattan’s principal shopping districts, the number of directly available ground-floor shops fell to around 170 during the second quarter, approximately 8% fewer than a year earlier. Average advertised rents across the major corridors were close to $680 per square foot annually.

The transformation since the pandemic period is considerable. Availability across Manhattan’s leading shopping streets has fallen from levels approaching 28% during the disruption of early 2021 to little more than 10% today. International retailers, luxury brands, restaurants and expanding consumer businesses are competing for a much smaller pool of suitable premises, particularly in established destinations such as SoHo and other heavily visited parts of Manhattan.

Industrial property presents a different picture. New York continues to offer one of North America’s most valuable urban logistics locations because warehouses can serve millions of consumers within a relatively small radius. Nevertheless, weaker demand in parts of the outer boroughs has placed some downward pressure on rents.

Average advertised industrial rents across these locations stood at approximately $27.50 per square foot during Q2, below the levels reached at the market’s recent peak. Warehouse and distribution properties averaged slightly above $28 per square foot. Development has not stopped, however, with roughly 737,000 square feet under construction across three projects at the end of the quarter, including a major speculative scheme in Brooklyn’s Sunset Park.

New York’s investment market is also showing stronger signs of revival. Commercial property transactions reached approximately $7.8 billion during the second quarter, producing the strongest Q2 investment total since 2022. Approximately $16.1 billion changed hands during the first six months of 2026, more than 30% above the corresponding period last year.

Importantly, the increase in investment value occurred even though fewer individual properties were sold than a year earlier. This indicates that larger transactions and more valuable assets are returning to the market rather than the improvement being driven simply by a greater number of small deals.

Office investment provides perhaps the clearest indication that attitudes towards New York property risk are changing. Approximately $2.3 billion of office assets traded during the quarter, around 42% more than during Q2 2025. Forty office transactions were completed, the highest quarterly number for several years.

Institutional investors and listed property companies are returning selectively to larger assets, while private investors continue to examine buildings where falling values have created opportunities for refurbishment, conversion or repositioning. The enormous difference between successful modern offices and struggling older properties is consequently becoming an investment strategy in its own right.

Residential rental property remains another important destination for capital. Apartment transactions generated approximately $1.8 billion during Q2 and around $3.6 billion during the first half of the year. New York’s chronic shortage of housing, high barriers to construction and persistent renter demand continue to support investor interest, although regulation and financing costs remain significant considerations.

Development land has also returned to investors’ radar. Transactions involving development sites reached roughly $1.7 billion during Q2, the strongest quarterly result since 2021. Activity increased particularly strongly in Manhattan and Brooklyn, while average citywide land values moved to around $235 per potential buildable square foot.

These trends suggest that New York entered the second half of 2026 in a substantially healthier position than during the most difficult years following the pandemic. Companies are leasing more offices, prime retail premises are becoming harder to find and investors are increasingly prepared to commit capital to acquisitions and development opportunities.

However, New York’s next property cycle is unlikely to lift every building equally. The strongest locations and highest-quality assets are recovering much faster than secondary properties. A modern Midtown office with limited competing space can operate in an increasingly landlord-friendly environment while an outdated building only a few streets away may still require substantial investment, incentives or an entirely different use.

This widening gap may become the defining feature of New York commercial real estate through the remainder of 2026 and into 2027. Restricted development, expensive construction and the removal of obsolete stock are reducing the supply of properties that meet modern occupier requirements. At the same time, improving investment liquidity is giving owners and developers greater confidence to reposition buildings that no longer compete effectively.

New York is therefore no longer simply waiting for commercial property demand to return. Demand has already returned to significant parts of the market. The more important question now is whether the city can provide enough of the offices, shops, logistics facilities and investment opportunities that occupiers and investors actually want.

Source: CIJ.World Research & Analysis

Sinsay Expands at Włocławek Retail Park as BIG Continues Asset Repositioning

BIG Poland is continuing the repositioning of its Włocławek retail property following the arrival of Sinsay, which has opened a new store of almost 900 sqm at the 21,000 sqm scheme.

The fashion and lifestyle retailer opened at BIG Włocławek on 26 August, occupying space opposite Castorama and next to the Second Hand store. The addition broadens the property’s fashion offer while adding another large national retailer to its tenant line-up.

Sinsay forms part of Polish fashion group LPP and has developed a format extending beyond clothing into home accessories, cosmetics and other lifestyle products. The brand serves women, men and children and is already represented at other retail parks operated by BIG Poland.

The opening forms part of a longer asset-management programme that began after BIG Poland acquired the former Kujawia Park in December 2024. The property was subsequently renamed BIG Włocławek, with the owner continuing to adjust and expand its retail offer following the acquisition.

“We are consistently strengthening BIG Włocławek’s offer, building on its key strengths: convenience and the best retail location in the city,” said Eran Levy, CEO of BIG Poland. He added that the company sees further opportunities to develop the property’s tenant mix and position within the local market.

BIG Włocławek provides approximately 21,000 sqm of gross lettable area. Its larger occupiers include Castorama, Lidl, Agata Meble and RTV Euro AGD, while the wider tenant mix includes Action, Dealz, Pepco, Rossmann, Smyk, KiK and TEDi. A McDonald’s restaurant also operates at the property.

The combination reflects the increasingly diversified nature of Poland’s retail park sector. Formats originally dominated by grocery, DIY and household operators have broadened their tenant composition as fashion, beauty and lifestyle retailers increase their presence outside conventional enclosed shopping centres.

For landlords, adding these categories can increase the number of reasons for consumers to visit a retail park while reducing reliance on a relatively narrow group of traditional large-format tenants. Sinsay’s combination of clothing and household products fits particularly closely with the convenience and value-led positioning of many regional Polish retail parks.

The Włocławek property also provides 930 free parking spaces, reinforcing its role as a car-accessible shopping destination serving the city and its surrounding catchment.

The asset forms part of a rapidly expanded Polish portfolio for BIG. The company entered the country’s market in 2022 and now owns 13 retail parks with a combined area approaching 258,000 sqm. Its properties are located in markets including Gorzów Wielkopolski, Olsztyn, Koszalin, Kielce, Suwałki, Lubin, Ostróda and Włocławek. BIG Włocławek strengthens its tenant mix with Sinsay.docx

Further expansion is already being prepared. BIG has four additional Polish developments planned in Piła, Olkusz, Konstantynów Łódzki and Bolesławiec.

The Sinsay opening is therefore relatively small when viewed against BIG’s overall Polish portfolio, but it illustrates an important part of the investment strategy following acquisitions. Growth in retail property is not limited to buying or developing additional assets; increasing the relevance of existing schemes through tenant changes can also improve their competitive position.

For BIG Włocławek, the latest opening represents another stage in the transformation of the former Kujawia Park. More broadly, it reflects how Polish retail parks are evolving from relatively simple convenience-led formats into increasingly diversified shopping destinations capable of accommodating fashion and lifestyle brands alongside their traditional grocery, DIY and household anchors.

Skanska Advances Florida Gulf Coast University’s Largest Academic Development

Skanska has expanded its role in the development of a new academic facility for Florida Gulf Coast University in Fort Myers, securing an additional contract worth $85 million, equivalent to approximately SEK 790 million.

The latest agreement covers work associated with the university’s new Marieb Hall South, a health sciences facility that will become the largest academic building on the Florida Gulf Coast University campus when completed. Skanska will include the additional contract value in its U.S. order bookings for the third quarter of 2026.

The project comprises approximately 14,700 sqm, or 158,000 sq ft, of new space. Alongside conventional classrooms and offices, the building will accommodate specialist laboratories, simulation facilities and concession areas, reflecting its focus on health sciences education.

The development also includes associated site and infrastructure works required to integrate the new building into the wider university campus.

The specialist facilities are a significant component of the project. Simulation and laboratory environments generally require more complex building systems and technical infrastructure than conventional teaching space, making health sciences buildings an increasingly specialised segment of the education construction market.

Marieb Hall South will expand the physical infrastructure available for Florida Gulf Coast University’s health sciences programmes while consolidating teaching, practical training and specialist laboratory functions within a single large academic facility.

The $85 million announced by Skanska represents an additional contract rather than a stated total development cost. The information released by the contractor does not specify the overall investment value of Marieb Hall South, and the latest contract should therefore not be interpreted as the full cost of the project.

Construction started during summer 2026 and is scheduled to continue for approximately two years, with completion expected in summer 2028.

The contract adds another substantial institutional project to Skanska’s U.S. construction order book and highlights continuing investment in specialist university infrastructure. Unlike conventional classroom development, health sciences facilities combine educational property with laboratory and clinical-style environments, increasing both their technical complexity and long-term importance to university campuses.

For Florida Gulf Coast University, the project represents a significant expansion of its academic estate. For the construction market, it provides another example of capital being directed towards specialised education and healthcare-training infrastructure, where universities increasingly require buildings capable of supporting practical, technology-intensive teaching alongside traditional academic functions.

PORR Lifts H1 Earnings as Infrastructure Pipeline Offsets Softer Order Intake

PORR increased profitability during the first half of 2026 despite broadly unchanged construction output and a decline in new orders, with infrastructure spending in Germany, Poland and Central and Eastern Europe providing much of the group’s forward visibility.

Production output reached €3.17 billion in the first six months, virtually unchanged from the corresponding period of 2025. Revenue slipped 1.1% to €2.93 billion, partly reflecting the effects of the prolonged winter and a greater proportion of activity carried out through joint ventures and construction consortia.

Profitability moved in the opposite direction. EBITDA increased 11.6% to €171.1 million, while EBIT advanced 15.6% to €56.3 million. Pre-tax profit rose 26.8% to €49.2 million and consolidated net profit increased almost 24% to €36.4 million. Earnings per share reached €0.71, compared with €0.53 a year earlier.

The results indicate that PORR is generating stronger earnings without relying on significant top-line expansion. Lower expenditure on materials and purchased services contributed to the improvement, although personnel costs increased during the period. The company also benefited from a €6.4 million one-off contribution connected with the disposal of an operating property held through a joint venture.

The order picture was more mixed. PORR ended June with a backlog of €9.84 billion, 4.4% higher year-on-year and equivalent to roughly one and a half years of activity according to management. New orders during the half-year, however, declined 14.4% to €3.47 billion.

That represents a noticeable change from the opening quarter. At the end of March, PORR’s backlog had exceeded €10 billion for the first time and first-quarter order intake had increased 14.7% year-on-year. Trading_Statement_Q1_final.pdf The subsequent H1 decline in new orders therefore provides an important qualification to an otherwise strong set of earnings figures.

Management nevertheless points to a substantial pipeline that had not yet been incorporated into the June order book. Following the reporting date, PORR secured a €270 million three-year framework agreement connected with German military construction, alongside approximately €200 million of additional German building contracts. In Poland, another €180 million of infrastructure work had been secured after the end of June.

More significantly for future activity, the company reported more than €4.5 billion of large projects in Poland and CEE that were approaching the final stages of procurement or bidding. In Romania, PORR was also highly ranked for a motorway project worth approximately €550 million, although the contract had not been awarded at the reporting date.

Poland remains an increasingly important part of the group’s operations. It generated €494 million of production output during the first half, representing 15.6% of PORR’s total activity. Germany accounted for 23%, while Austria remained by far the largest individual market with 48%. Romania contributed 5%, with the Czech Republic and Slovakia together accounting for 5.2%.

The composition of construction demand is also changing. Civil engineering output increased 7.2% during the first half, while building construction declined 2.6%, partly because winter conditions delayed activity in Austria and Germany. Infrastructure has consequently become an important counterweight to weakness in parts of the traditional building market.

Several major projects illustrate that shift. PORR’s first-half wins included a section of the S6 western bypass around Szczecin and work on Poland’s DK25 road, together with participation in Germany’s Fehmarn Sound crossing. In building construction, the company secured work associated with X-FAB’s semiconductor manufacturing expansion in Erfurt as well as residential, mixed-use and healthcare projects.

The wider European construction environment remains divided. PORR’s report cites expectations for construction output across the Euroconstruct markets to increase in 2026, but the improvement is heavily weighted towards civil engineering. Housing remains comparatively weak, while energy networks, water infrastructure, railways and other publicly supported projects are providing stronger growth prospects.

This distinction is becoming increasingly important for contractors. Companies with exposure to large transport, energy and public infrastructure programmes are operating against a considerably different demand backdrop from businesses dependent on private residential or conventional commercial development.

PORR has maintained its full-year growth expectations despite the softer first-half order intake. Management expects production and revenue to increase by between 2% and 4% in 2026 and is targeting an EBIT margin of 3.2% to 3.3%.

For the European construction market, PORR’s first-half performance points to a broader transition rather than a uniform recovery. Private development remains constrained in several sectors, but transport networks, industrial facilities and publicly backed infrastructure are creating substantial workloads. The strength of PORR’s €9.8 billion backlog therefore says as much about where European construction capital is moving as it does about the contractor itself: increasingly towards infrastructure and specialised projects rather than a broad-based revival across every part of the building market.

Global Vision Targets Value in Central Bucharest with Former Bank HQ Acquisition

Global Vision has acquired the former Alpha Bank headquarters in central Bucharest, adding two established office buildings to its portfolio as the investor continues a strategy focused on properties with refurbishment and repositioning potential.

The transaction covers two buildings at 237 Calea Dorobanți in the Dorobanți-Primăverii area, close to Romanian Television and Aviatorilor metro station. Developed by Neocity Group in 2001 and 2004, the properties provide approximately 10,000 sqm of total built area and until recently accommodated Alpha Bank’s headquarters. The acquisition was completed through a share deal, with a group of Irish investors acting as sellers.

The purchase gives Global Vision control of an established property in one of Bucharest’s central business locations rather than adding newly developed office stock. Its age means investment will be required to maintain competitiveness, but the central location also provides an opportunity to modernise an asset in an area where equivalent new development opportunities can be difficult to secure.

Global Vision has already followed a similar strategy elsewhere in Bucharest. In 2022, the company acquired Nova Building in the Dimitrie Pompeiu office district and subsequently repositioned the property as Corner Office Building. More than €12 million was earmarked for that project, including refurbishment and measures intended to improve the building’s environmental performance.

The company sees the latest purchase as another opportunity to extract value from an existing urban property rather than relying exclusively on new construction.

“This acquisition reflects Global Vision’s strategic investment approach, similar to our previous projects, Brătianu Business Center and Corner Office Building, which focused on reintegrating strategically located assets into the city’s commercial landscape,” said Sorin Preda, CEO and founder of Global Vision. He added that the location and scale of the Dorobanți property provide opportunities for further value creation.

The transaction comes as offices have regained a larger role in Romanian commercial property investment. Around €300 million of real estate transactions were recorded nationally during the first half of 2026, according to market figures contained in the transaction announcement, with offices representing approximately 60% of the total. That was the sector’s highest share of Romanian investment volume since 2022.

The return of office investment does not imply indiscriminate demand. Investors are increasingly differentiating between buildings according to location, quality, lease security and the amount of capital required to keep older properties competitive.

This creates both a problem and an opportunity for Bucharest’s earlier generations of modern office buildings. Properties developed during the expansion of the market in the 2000s are increasingly competing against newer buildings offering better energy performance, more efficient space and contemporary workplace standards. Older assets without investment risk losing occupiers, while well-located properties capable of substantial refurbishment can offer investors an alternative route into locations where new supply is difficult to create.

The former Alpha Bank headquarters fits into the latter category. The buildings are more than two decades old, but their location close to a metro station and within an established central district provides characteristics that cannot easily be recreated through development elsewhere.

This scarcity could become increasingly important. Market commentary accompanying the transaction points to growing difficulty in securing central sites that combine metro access, visibility and adequate parking. As a result, existing buildings that can be modernised to current standards may become more relevant to investors seeking exposure to central Bucharest.

Romania’s relatively high property yields provide another part of the investment case. Current market estimates cited in the transaction material put prime Bucharest office yields at approximately 7.5%, compared with around 7.75% for industrial and logistics assets and 7.25% for shopping centres. These levels remain above those generally available in several more established CEE investment markets, although higher yields also reflect differences in liquidity and perceived market risk.

Global Vision’s latest acquisition forms part of a considerably broader investment programme. The company is targeting more than €150 million of investments during 2026 across offices, retail, industrial property and data centres, with a longer-term objective of building a portfolio valued at more than €1 billion.

The acquisition therefore represents more than the transfer of a former corporate headquarters. It demonstrates an investment approach that could become increasingly relevant as Bucharest’s office market matures: acquiring older properties in locations that remain commercially strong and using refurbishment and active asset management to extend their useful life.

”This transaction shows that both interest and capital are available for Romanian assets, and we believe our market still offers considerable growth potential. The sale of the former Alpha Bank headquarters is the sixth transaction completed by our Capital Markets team year-to-date, with an aggregate gross asset value more than €425 million. Four of these were office deals, which speaks to the continued appeal of the Romanian office sector to investors”, adds Robert Miklo, Partner, Head of Capital Markets at Colliers.

”As it is becoming increasingly difficult to develop new office buildings in central locations, close to a metro station, with good visibility and sufficient parking spaces, we believe there will be growing interest in well-positioned buildings, even those constructed 15 – 20 years ago, provided they can be refurbished, brought up to current standards and subsequently leased at market rents to leading companies”, adds Simina Niculiță, Partner & Director, Capital Markets at Colliers.

For Bucharest, this could become an increasingly important component of the next office investment cycle. With development opportunities in established central districts constrained, some of the city’s most interesting opportunities may lie not in constructing additional buildings, but in finding existing properties whose locations remain stronger than their current physical specification and investing enough capital to close that gap.

Refurbished Warsaw Office HOP Reaches 98% Occupancy After New State Lease

The National Heritage Institute has moved into its new headquarters at HOP in central Warsaw, taking almost 3,800 sqm and lifting occupancy at the refurbished office property to 98%.

The state cultural institution occupies space across five floors at 132/134 Chmielna Street. The transaction makes it the latest public-sector organisation to establish its headquarters in the building, following the Chief Inspectorate for Environmental Protection.

The lease is also significant for HOP’s repositioning as a modern workplace within an existing Warsaw office building. Rather than replacing the original 1990s property, owner Syrena Real Estate has modernised it and introduced new workplace, public and cultural functions.

The National Heritage Institute is responsible for supporting the protection and conservation of Poland’s historic environment, developing standards and increasing public understanding of cultural heritage. Its choice of a refurbished building is particularly notable given the organisation’s own focus on preserving and adapting existing assets.

“The new headquarters provides us with the conditions to further develop the Institute and fulfil its mission. HOP offers a space that meets the needs of our team, whilst its location in the centre of Warsaw makes it easily accessible to both staff and those collaborating with the NID,” said Michał Krasucki, acting director of the National Heritage Institute.

Krasucki also pointed to HOP’s architectural character and the way the existing building has been reinterpreted as factors supporting the choice of location.

Colliers represented the National Heritage Institute during the leasing process, while Reesco is carrying out the fit-out of the new headquarters.

HOP provides more than 14,000 sqm of leasable space across six above-ground floors. Its repositioning has included approximately 1,000 sqm of coworking and conference facilities on the ground floor and the creation of a publicly accessible landscaped square of around 600 sqm in front of the property.

The refurbishment has also introduced cycling facilities and electric vehicle charging infrastructure. Part of the building has been allocated to an artist-in-residence programme, while other areas are used for exhibitions and events connected with architecture, culture and art. Anna Łoskiewicz of Łoskiewicz Studio was responsible for the property’s new architectural concept.

The building has a 94-space underground car park and holds BREEAM In-Use Excellent, WELL Health & Safety and Barrier-Free Facility certifications.

Its tenant base combines public institutions and private companies. Alongside the National Heritage Institute and Chief Inspectorate for Environmental Protection, occupiers include Aplikacje Krytyczne, YOPE, BNP Paribas Bank Polska, ERM Polska, Evergreen and Żabka. Syrena Real Estate also maintains its headquarters in the building.

Reaching 98% occupancy provides an interesting example of the potential for older Warsaw offices to remain competitive following substantial repositioning. Across mature European office markets, ageing buildings increasingly face pressure from occupiers seeking better environmental performance, employee amenities and more efficient space. For owners, this is creating a widening distinction between older properties that receive sufficient investment and those that risk losing relevance.

HOP demonstrates one route available to landlords: retaining and adapting an existing structure while upgrading its functionality and broadening the uses available within and around the building.

The arrival of another state institution adds a further dimension. Public-sector organisations can represent an important source of relatively substantial office requirements, particularly for centrally located properties with strong public transport accessibility. HOP’s ability to attract both institutional and private occupiers suggests that refurbished buildings can compete where location and modernisation compensate for their age.

At almost full occupancy, the property provides evidence that the future of Warsaw’s older office stock does not necessarily depend on demolition and replacement. Well-located buildings capable of being substantially modernised can find renewed demand, potentially extending their economic life while offering an alternative to new development in an increasingly selective office market.

Bucharest Housing Discount Puts Regional Residential Pricing in Focus

Bucharest continues to offer substantially lower new-build residential prices than Warsaw and Budapest, highlighting a widening difference in housing costs across three of Central and Eastern Europe’s major capitals. The gap could increase the Romanian capital’s appeal to regional buyers, although headline prices alone provide an incomplete measure of relative investment value.

An analysis by Cordia puts average new-build prices in Budapest above €5,200 per sqm, while Warsaw is approaching €4,700 per sqm for apartments delivered unfinished. New housing in Bucharest remains below €3,600 per sqm, despite significant price growth over the past year.

On those figures, a newly built Bucharest apartment costs approximately 31% less per square metre than its Budapest equivalent and around 23% less than the Warsaw comparison. The difference becomes particularly relevant to residential investors when combined with rental income. Cordia estimates gross rental yields in Bucharest at approximately 5–6%, which it describes as broadly comparable with yields available in major Polish residential markets.

The comparison nevertheless requires more than placing three asking prices alongside each other. Residential products are delivered differently between markets, taxation varies considerably and construction and land costs do not exert the same pressure on development economics.

Warsaw provides one example. New apartments in the Polish capital have traditionally often been sold without complete interior finishing, leaving purchasers to fund fit-out separately. The apparent price difference between Warsaw and Bucharest therefore does not necessarily represent the entire difference in the amount a buyer must invest before an apartment can be occupied or placed on the rental market.

Development economics also vary considerably. Cordia estimates that construction costs for a typical residential project in Bucharest and Warsaw are approximately 25–30% lower than in Budapest. Land creates a different pressure: according to the developer’s analysis, residential development land in Warsaw can cost more than twice as much per square metre as comparable sites in Bucharest or Budapest.

These differences help demonstrate why the lowest apartment price does not automatically indicate the cheapest market for developers or the strongest investment opportunity. Construction expenditure, land availability, planning procedures, financing and the price consumers can ultimately afford all contribute to development margins and housing supply.

Taxation further complicates comparisons. The three countries apply substantially different VAT arrangements to residential property. Cordia’s analysis points to a 5% rate for qualifying newly built homes in Hungary, while Poland applies an 8% rate to residential properties within the relevant size threshold, with floor area above that threshold subject to the higher rate. Romania’s standard VAT rate returned to 21% in August 2026 following changes to its previous reduced-rate arrangements.

For Bucharest, the higher tax burden means part of the city’s underlying price advantage can be offset when the total acquisition cost is considered. It could also affect future development economics if higher taxation restricts affordability at a time when construction and land costs are themselves changing.

The relative price gap is nevertheless large enough to attract attention outside Romania. Cordia says it has encountered interest from Hungarian buyers in Centropolitan, its latest Bucharest residential development, which is planned to contain 274 apartments.

That provides evidence of cross-border interest at project level, although it should not yet be interpreted as proof of a broad movement of Hungarian residential capital into Romania. Establishing such a trend would require wider transaction evidence across the Bucharest market.

“These price differences, which can be substantial in some cases, may also attract the attention of Hungarian investors,” said Áron Görög, Head of Sales at Cordia, adding that the group assists buyers looking at residential opportunities elsewhere in the region.

The comparison also illustrates how the residential investment proposition across CEE is becoming more complex. Investors considering an apartment for rental income increasingly have to look beyond the purchase price towards the amount required for completion, achievable rent, taxation and the longer-term prospects for the local housing market.

Bucharest’s estimated 5–6% gross yields combined with lower entry prices provide an apparently attractive starting point. However, gross yield does not account for financing, taxation, vacancy, maintenance, management expenditure or transaction costs, while differences in market liquidity can materially affect the eventual investment return.

The same caution applies when comparing affordability. Lower prices in Bucharest do not automatically mean housing is more affordable to local households because affordability ultimately depends on the relationship between property values, household incomes and mortgage costs rather than the euro price of an apartment alone.

There are also important differences in the maturity and depth of the three markets. Warsaw has attracted substantial domestic and international capital and operates within Poland’s considerably larger residential market. Budapest combines relatively high new-build prices with different taxation and development economics. Bucharest enters the comparison from a lower pricing base but with its own regulatory, financing and supply constraints.

For developers, the figures underline another important point. The final selling price of an apartment is not simply determined by construction expenditure. Cordia identifies administrative procedures, underlying demand and government housing support as additional factors contributing to differences between markets.

Bucharest’s residential discount should therefore be regarded as a starting point for comparing CEE housing markets rather than evidence that one city offers unequivocally better investment prospects than another.

What the comparison does demonstrate is the scale of the pricing divergence that has developed between three important regional capitals. If Bucharest can maintain rental returns around current levels while new-build prices remain materially below Warsaw and Budapest, its relative position is likely to attract increasing attention from buyers willing to invest across borders.

Whether that develops into a significant flow of regional investment will depend on more than price. The stronger test will be whether Bucharest can combine its lower entry cost with sufficient rental growth, market liquidity, housing demand and predictable development conditions to turn an apparent pricing discount into sustainable investment performance.

Poland’s Recovery Holds Course, but Weak Factory Orders Temper Investment Outlook

Poland’s economic outlook remained broadly positive in August despite a small deterioration in one of the country’s forward-looking economic indicators. The latest reading from the Bureau for Investments and Economic Cycles (BIEC) suggests that the economy continues to move in a favourable direction, although manufacturing companies are still waiting for a convincing recovery in new business.

BIEC’s Leading Economic Indicator (WWK) declined by 0.5 points compared with July. The movement was relatively modest against the improvement recorded over the longer term and does not, in BIEC’s assessment, signal a reversal of the broader economic trend. Of the indicator’s eight components, two improved, three were unchanged and three weakened.

The more significant concern lies beneath the headline indicator. Manufacturers reported a slight deterioration in the flow of new orders during August. Although conditions are better than a year ago, BIEC finds no clear direction in order growth since the beginning of 2026. This suggests that Poland’s improving economic environment has yet to translate into a broad acceleration in demand for manufactured goods.

External conditions remain part of the problem. Weakness across parts of the European economy and continuing geopolitical uncertainty are affecting demand, while August is also influenced by the normal seasonal slowdown associated with summer holidays and reduced business activity. These factors make it difficult to determine how much of the current weakness represents underlying demand and how much is temporary.

Performance also varies considerably between manufacturing industries. Producers of electronics and transport equipment currently report comparatively stronger order conditions, while furniture and clothing manufacturers are experiencing the greatest deterioration. The divergence indicates that Poland’s industrial recovery is developing unevenly rather than lifting manufacturing activity across the board.

The absence of stronger orders has consequences beyond factory output. Without greater visibility over future demand, companies have less incentive to commit capital to additional production capacity, machinery or facilities. BIEC warns that slow improvement in manufacturers’ financial position could consequently delay or limit investment decisions.

For the commercial property sector, this is an important distinction. Poland can maintain relatively favourable headline economic prospects without immediately generating a new wave of manufacturing investment. Industrial and logistics demand connected with production expansion ultimately depends on companies having sufficient confidence in future orders to commit to additional capacity.

There is nevertheless a notable difference between manufacturers’ perceptions and the broader financial performance of Polish companies. BIEC reports that assessments of financial conditions among manufacturing managers have improved only moderately, while first-half data from Statistics Poland covering businesses employing at least 50 people presents a stronger picture.

Part of that divergence may reflect the composition of the wider corporate economy. The official financial statistics extend beyond manufacturing to other industries, including services. BIEC notes that services have expanded much more rapidly than manufacturing in recent years, potentially explaining why aggregate company results appear healthier than sentiment within factories.

Financial markets are sending an even more optimistic signal. According to BIEC, Warsaw’s main WIG equity index increased by almost 6% in real terms during August and by more than 35% over the previous 12 months. The strength of listed equities stands in contrast to the caution still evident among parts of the manufacturing sector.

The picture emerging in August is therefore not one of a weakening Polish economy, but of an uneven recovery. Forward-looking conditions remain considerably stronger than during earlier periods of economic weakness, corporate results outside manufacturing appear more encouraging and financial markets have performed strongly. Yet industrial companies still lack the sustained improvement in orders that would provide greater confidence for expansion.

For real estate investors and developers, the distinction matters. Stronger consumer activity and service-sector growth can support offices, retail, urban logistics and other commercial property segments, while manufacturing-related industrial demand follows a different cycle. New factories and production expansions generally require longer investment horizons and greater certainty over future demand.

The next stage of Poland’s recovery will therefore depend partly on whether improving economic conditions begin feeding through into manufacturers’ order books. If that happens, the investment cycle could broaden from improving corporate and financial-market indicators towards greater expenditure on productive capacity.

For now, the Polish economy appears to be moving forward, but the manufacturing investment engine has not yet fully restarted. That leaves the commercial property market with an increasingly important question for the remainder of 2026: whether improving economic confidence will finally translate into the new industrial orders and corporate investment required to support the next phase of development demand.

Winkler Expands Polish Distribution Network with New Łódź Facility

Winkler Polska has leased approximately 1,500 sqm at MLP Business Park Łódź as the automotive and commercial vehicle parts distributor expands its distribution network in central Poland. The new location comprises around 1,100 sqm of warehouse space together with more than 400 sqm of offices and employee facilities. Savills represented Winkler during the search and lease negotiations.

The Łódź branch will strengthen Winkler’s ability to supply customers across central Poland, placing inventory closer to one of the country’s largest concentrations of transport, logistics and industrial businesses. The location also provides the company with access to the Łódź metropolitan area while retaining connections to Poland’s principal north-south and east-west transport corridors.

Winkler specialises in replacement parts and technical equipment for trucks, buses, trailers, agricultural machinery and construction equipment. The wider group employs more than 1,700 people across over 40 locations in Germany, Austria, Switzerland, Poland, the Czech Republic and Slovakia. Its European distribution system includes three major central warehouses and provides access to more than 200,000 spare parts. The company generated approximately €610 million in sales in 2025.

“The opening of our new branch in Łódź marks another important step in the development of our distribution network in Poland. The Łódź region and central Poland are among the country’s key economic and logistics hubs, and establishing a presence here will enable us to respond even more efficiently to our customers’ needs,” said Adam Czarnecki, Sales Manager Poland at Winkler Polska.

The new operation is expected to shorten delivery times for customers in Łódź and the surrounding region while supporting the company’s continued expansion in Poland. The transaction also illustrates the different types of logistics demand being generated around Łódź. While the region is established as a location for large distribution centres serving national and international networks, smaller urban and regional facilities are becoming increasingly relevant to businesses requiring faster access to customers and inventory.

MLP Business Park Łódź is being developed on a 14.4-hectare site and is planned to provide approximately 28,200 sqm of space. It is MLP Group’s second project in the Łódź region. The development is located approximately 10 km from central Łódź and around 4 km from the Łódź Wschód junction of the A1 motorway. The Łódź Północ junction of the A2 is approximately 25 km away, while the S14 expressway is around 15 km from the property. Public transport connections also provide access to the site for employees.

The combination is particularly relevant for businesses operating regional distribution networks. Proximity to the city provides access to customers and labour, while the nearby motorway network enables goods to move efficiently between Łódź and other Polish markets.

MLP is targeting BREEAM New Construction Excellent certification for the development. The project incorporates green areas, roofs incorporating vegetation, water-saving measures and infrastructure prepared for photovoltaic installations, alongside facilities for employees travelling by bicycle. More than half of the site is planned as green space.

For Winkler, however, the principal attraction is operational. Locating stock within the Łódź region should allow the company to reduce the distance between its parts inventory and customers requiring rapid replacement deliveries. The new branch forms part of the group’s broader distribution infrastructure rather than functioning as a large national fulfilment centre.

The transaction adds another occupier to Łódź’s expanding logistics and light-industrial market and demonstrates how the region’s central position is supporting demand beyond conventional big-box warehousing. As distribution networks become increasingly focused on delivery speed and inventory availability, smaller facilities close to major cities and motorway connections are becoming an increasingly important component of Poland’s logistics property market.

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