Strategic design drives employee well-being at Passerinvest Group’s office spaces

Czech developer Passerinvest Group is redefining the modern office environment by incorporating employee preferences and operational insights into its planning and design. From coffee machine placement to restroom design, Passerinvest considers every detail to create spaces that enhance communication, productivity, and employee satisfaction. Eduard Forejt, Sales Director at Passerinvest, highlights the company’s holistic approach: “When planning spaces, we’re guided by our own operational experience, safety regulations, and, most importantly, the needs of our clients’ personnel. A motivated, satisfied employee is invaluable, so we adapt everything—from interior layouts to materials and colors—to support their well-being.”

Coffee Machines: A Strategic Location

It may seem trivial, but the location of the coffee machine can significantly impact a company’s internal communication flow. Coffee areas become natural hubs where employees exchange information, relax, and consult with one another. If placed too far from the main work areas, it discourages usage, whereas proximity to sensitive areas, such as management offices, can create tension. “Positioning the coffee machine near the director’s office has proven counterproductive in many cases,” Forejt observes. “This depends on company culture, of course, but placement is essential to ensure it fosters natural interactions without causing disruptions.”

Restrooms with a Purpose

Restroom design goes beyond functionality, addressing real workplace needs. In women’s restrooms, large mirrors allow multiple users to apply makeup simultaneously—a frequent request from HR managers. To prevent misplacing jewelry, like wedding rings, sinks and counters are designed in contrasting colors to enhance visibility. Even minor adjustments, like slightly raising the height of toilet seats, can increase efficiency, as a study commissioned by a major corporation found that minor changes can save significant downtime annually. “Such details reflect how even restrooms can impact productivity,” Forejt says.

Thoughtful Open Space Design

While open office spaces encourage communication and collaboration, Passerinvest has developed a balanced “office landscape” model, where team members have designated quiet areas for focused work and private spaces for meetings. “Complete open space feels undignified if employees constantly feel watched or interrupted. We aim to create inviting, structured spaces where people can choose between quiet work and interaction,” Forejt explains.

New Expectations: Beyond the Foosball Table

Modern employees need more than a break room or foosball table. Mental well-being requires brief breaks, access to green spaces, and natural light. Today’s workplaces feature quiet zones, rooftop terraces, and walking paths around the building, allowing employees to recharge outdoors. Forejt notes that demand for such features is increasing, with many seeking office spaces near green areas.

Technology and Layout Optimization

Modern technology also supports workplace optimization. For larger corporations, occupancy sensors or wristbands track how employees interact within a space, identifying opportunities for more effective layouts. “Some may see it as ‘big brother,’ but these technologies can reveal why some spaces hinder productivity. Small changes in layout based on real usage patterns can improve satisfaction and comfort,” Forejt says.

Cultural Nuances Shape Office Design

Finally, Forejt points out that office needs vary by nationality. For example, while Czechs prioritize a social lunch hour, the British are accustomed to lighter midday meals and may not value a nearby canteen as highly. The Germans often prefer simple, functional spaces, while Czechs appreciate aesthetic elements like natural materials and indoor plants that enhance the environment.

Passerinvest Group’s people-centric approach demonstrates how thoughtful, adaptable office design can contribute to productivity, morale, and workplace culture across various industries.

Author: Eduard Forejt, Sales Director at Passerinvest

Prague considers transforming Motol greyhound racetrack into a new athletics stadium

The city of Prague is advancing plans to purchase the Motol greyhound racetrack and redevelop it as an athletics stadium, addressing the city’s need for more sports facilities. Although the racetrack, owned by Czech International, has a lease until at least 2035, the city aims to secure the property for CZK 200 million—a figure below the estimated market value.

Located near Plzeňská Street in Košíře, the greyhound facility opened in 2013, following a CZK 350 million investment that created a modern complex with amenities, including restaurants and a 190-space car park. This potential acquisition reflects a strategic shift for the property, which has previously been under consideration for other recreational purposes, such as a cycling center and velodrome. However, recent planning decisions have earmarked Brno as the preferred site for the velodrome, leaving the Motol track available for transformation into an athletics venue.

Councillor Klecanda emphasizes that converting the current stadium would be cost-effective and beneficial, as there is significant infrastructure already in place. Additionally, the land includes a major water pipeline, making it advantageous to adapt the existing site rather than undertaking costly relocations.

The envisioned stadium would provide facilities for athletic clubs in Prague 5 and support various outdoor competitions. According to Klecanda, the city is eager to finalize the deal, though municipal coalition approval and procedural steps are required before completion.

Source: CTK
Photo: Greyhound Park Motol

GARBE Industrial Real Estate expands into Romania, launching new subsidiary

GARBE Industrial Real Estate GmbH, a prominent European developer and manager of logistics and industrial properties, has officially entered the Romanian market with a new subsidiary, GARBE Industrial Real Estate Romania. Led by Andrei Jerca as Country Head and overseen by Martin Polák, GARBE’s Managing Director for Central and Eastern Europe, the company aims to capitalize on Romania’s promising logistics sector.

With Romania’s strong infrastructure, stable economy, and favorable energy costs, Jerca highlights the nation’s appeal for sustainable logistics development, particularly as Romania moves toward Schengen integration. Jerca brings extensive experience, having developed over 200,000 square meters of industrial space across key Romanian cities, and his knowledge is seen as essential to GARBE’s growth strategy.

Polák praised Jerca’s market insight and strategic vision, emphasizing the subsidiary’s role in expanding GARBE’s reach in Eastern Europe as Romania’s logistics market experiences robust growth. This strategic move marks GARBE’s commitment to establishing a significant presence in Romania’s industrial real estate landscape.

Slovakia’s retail park market thriving despite E-commerce growth

In an exclusive CIJ EUROPE interview with Andrej Mardiak and Lukáš Šarközi, Partners at Mayflower Slovakia, exciting developments in the country’s retail park sector were discussed. With several new projects on the horizon, it’s clear that Slovakia’s retail landscape is expanding in response to changing consumer habits and market demands.

Mayflower has been actively involved in various shopping park projects throughout Slovakia. Mardiak highlighted five major developments scheduled between March 2024 and March 2025. These include the recently completed Spektrum Ružomberok project, a 5,000 square meter retail park, as well as smaller projects like one in the city of Šaľa. Future openings include Spektrum Šamorin and the reconstruction of hypermarket chains in Nové Zámky and Lučenec, rebranded under the Spektrum name. Additionally, a second phase is underway for the retail park in Námestovo, expanding to 10,000 square meters, with more expansion plans in Rimavská Sobota and Levice.

Mardiak also teased an acquisition of a project currently in its construction phase, although he remained tight-lipped on specifics, as details are still under negotiation.

The rise of discount retailers and shifting consumer behavior have fueled the growth of retail parks in smaller cities across Slovakia. Mardiak and Šarközi explained that consumers are increasingly seeking convenience, avoiding long journeys to major shopping centers and opting instead for local retail parks in smaller cities. This trend is especially prevalent in towns with populations between 5,000 and 15,000, which were previously overlooked by developers.

“People don’t want to travel 30 minutes for shopping anymore,” remarked Šarközi, “and they welcome local retail schemes.”

Mardiak noted that the demand for discount brands is growing, and with it, the size of retail parks has increased. What used to accommodate eight tenants in a 4,000–5,000 square meter space now only needs four to five tenants, as brands like Action, Miller, and Woolworth have entered the Slovak market, each requiring larger retail units.

Both executives stressed that sustainability is a critical goal for Mayflower. “Almost 50% of our portfolio comes from reconstructions and redevelopments,” said Mardiak, noting that older buildings are being revamped with modern materials to meet higher environmental standards. In addition, Mayflower is shifting to electricity-based systems with low energy consumption and installing more sustainable features, such as energy-efficient glass frontages.

According to Šarközi, this focus on sustainability not only aligns with environmental goals but also offers a business opportunity for Mayflower as demand grows for eco-friendly retail spaces.

Mayflower takes a strategic approach when determining the ideal tenant mix for its retail parks, conducting extensive research to assess local market demand. “You need to meet the local requirements,” Mardiak emphasized. This includes analyzing the price levels and brand popularity in a region before proceeding with development.

By tailoring the tenant mix to the local population, Mayflower ensures its retail parks provide an attractive range of shopping options suited to the community’s needs.

Mardiak highlighted two key challenges currently facing the retail park sector: the slow permitting process and the potential for market saturation. “Getting permissions takes a huge amount of time, and time is money,” he said, pointing to the financial implications of these delays.

The risk of market saturation is also a growing concern. While there are still opportunities in Slovakia’s smaller cities, Mardiak acknowledged that not every retail park project will be successful. Thorough research and patience are needed before investing in new developments.

Despite the rise of e-commerce, both executives believe that retail parks remain resilient. “These projects are like crocodiles from the dinosaur era,” Šarközi quipped, highlighting their ability to withstand market changes. Retail parks cater to fast, convenient shopping, allowing customers to park, shop, and leave quickly—a distinct advantage over the time-consuming experience of larger shopping malls.

While e-commerce continues to grow, retail parks are proving to be complementary, offering an environment for impulse purchases that online platforms struggle to replicate. According to Šarközi, retail parks’ fast shopping philosophy means they still attract significant foot traffic.

Looking ahead, both Mardiak and Šarközi see a bright future for retail parks in Slovakia. While the market may be approaching saturation, there are still opportunities in both large and small cities. Mayflower intends to remain a key player in this space, continuing to shape Slovakia’s retail park landscape.

The Partners stressed the importance of careful planning and research in ensuring the long-term success of retail park projects. Retail parks, they argue, are not only resilient but have the potential to become valuable trophy assets, especially as they continue to outperform more vulnerable sectors like shopping malls in the fight against e-commerce.

P3 Czech Republic’s Aleš Zacha discusses the evolving landscape of logistics real estate

In an exclusive CIJ EUROPE interview with Aleš Zacha, Head of Development of P3 Czech Republic, shared insights into the logistics and warehousing sector’s growth and transformation in the wake of the pandemic.

CIJ: The logistics and warehousing sector has seen significant growth post-pandemic. How do you foresee the future of logistics real estate evolving, particularly in the Czech Republic?

Zacha noted that while the post-pandemic landscape was initially challenging, the logistics sector, particularly e-commerce, experienced remarkable growth. “We were all waiting to see what would happen, but we realized that demand continued to grow. Rent levels increased quarterly, which was amazing, especially in our portfolio around Prague. We witnessed zero vacancy rates; any available space had a queue,” he remarked.

However, he highlighted the impact of geopolitical factors, particularly the war in Ukraine, which led to a decline in demand in 2023, a trend that has persisted into 2024. “E-commerce drove growth, but supply chain disruptions from Asia due to pandemic-related issues highlighted the need for companies to stock inventory within Europe,” Zacha explained. This shift is leading to near-shoring strategies as companies aim to mitigate risks associated with global supply chain vulnerabilities.

CIJ: What role does near-shoring play in the future of logistics and manufacturing in the Czech Republic?

Zacha elaborated that the trend toward near-shoring is gaining traction in both logistics and manufacturing. “It’s not a quick process; relocating manufacturing takes time and careful planning. While logistics can shift more rapidly, manufacturers require more substantial investments and timeframes,” he said. He also noted that big Asian e-commerce platforms are increasingly seeking to establish warehouses in Europe to better serve their customer bases.

CIJ: How is P3 Parks addressing the growing importance of sustainability in logistics real estate?

Sustainability is a priority for P3 Parks, according to Zacha. “We have implemented various green initiatives, including adhering to BREEAM certification standards for new constructions and incorporating solutions for rainwater usage and renewable energy sources,” he stated. “We are also installing EV charging stations and ensuring our buildings meet modern sustainability criteria.”

However, Zacha acknowledged the challenge of balancing sustainability with client demands. “While many clients want sustainable systems, not all are willing to invest in the necessary upgrades. We believe this will change over time, as supply chain pressures will compel companies to embrace more sustainable practices,” he added.

CIJ: What are P3 Parks’ plans for further expansion in the Czech Republic?

Zacha outlined P3’s growth strategy, which includes new developments and acquisitions. “We are focused on land banking and identifying new development opportunities, with a current lettable area nearing 9 million square meters and a portfolio value approaching €10bilion. We aim to grow even more,” he stated.

When considering new land acquisitions, Zacha emphasized the importance of accessibility to highways and workforce availability. “We are looking for locations beyond just prime areas like Prague and Brno. Our focus is on finding opportunities with good access to key markets and industries, particularly those connected to the German market,” he explained.

CIJ: Urban logistics is gaining traction as cities grow. How is P3 Parks adapting to this trend?

While P3 primarily focuses on large logistics parks, Zacha acknowledged the rising demand for last-mile delivery centers. The company is currently exploring redevelopment opportunities in urban areas across Europe, including the Czech Republic. “We are aware that securing land in urban settings can be challenging due to higher competition from residential and office developers. Nonetheless, we remain open to opportunities, particularly in Prague,” he said.

CIJ: What do you see as the biggest opportunities and risks in the industrial market in the coming years?

Zacha pointed out the automotive sector as both a risk and an opportunity. “The situation in the automotive market is uncertain, especially with the ongoing transition to electric vehicles,” he explained. He also identified rising energy costs in Europe as a significant risk, stating that energy prices are considerably higher than in the US and Asia, which poses challenges for manufacturing and logistics companies.

Conversely, Zacha remains optimistic about e-commerce growth and advancements in technology and production, particularly in sectors like semiconductors. “Czech Republic’s position in the heart of Europe, along with a skilled workforce, keeps it an attractive market for investment,” he said.

CIJ: Finally, what does the future hold for P3 Parks in the next ten years?

Zacha envisions continued growth, with a focus on expanding their portfolio through acquisitions and new developments. “Our strategy remains consistent, with a commitment to sustainable, high-quality buildings. We want to ensure our developments are aligned with market demands for carbon neutrality and efficiency, which will ultimately enhance the value of our properties,” he concluded.

As the logistics and warehousing landscape continues to evolve, P3 Parks is strategically positioning itself to navigate.

Key legal and regulatory changes impacting Slovakia’s commercial real estate market in 2024

In a recent CIJ EUROPE interview, Robert Daniš, Partner at Wilsons Slovakia, outlined significant regulatory changes impacting the Slovak commercial real estate market in 2024. According to Daniš, the introduction of a new construction law is one of the most notable developments this year. “Part of the legislation is already in effect, specifically in zoning, while the sections related to construction are expected to come into force next year—unless parliament decides to delay it further,” Daniš explained.

The primary goal of the new law is to expedite and streamline the building permit process, which has historically been slow and complex. A key change will eliminate the need for zoning permits, a move aimed at making development more flexible. However, Daniš noted that full implementation has been delayed. “We’ll have to wait and see whether the anticipated benefits will be realized once the law is fully operational,” he said, adding that the most significant provisions have yet to take effect.

When asked about tax law changes, Daniš highlighted a rise in VAT for companies involved in real estate. While not a sweeping reform, the increase could have a ripple effect on the sector. “Higher VAT could contribute to increased costs for companies and potentially property buyers, which could potentially affect pricing and demand in the market,” he stated. This shift is expected to influence both inflation and real estate costs moving forward.

Reflecting on the impact of the COVID-19 pandemic on lease agreements, Daniš noted that force majeure clauses became popular during the lockdowns, as many tenants sought rent relief. “Many tenants requested these clauses to safeguard themselves during the pandemic,” he said. However, as the market stabilizes, such requests have become less frequent.

Daniš also pointed out that the office sector has remained in favor of tenants, with current market conditions allowing them to secure better leasing terms to offset the overall inflation driven rise of rent and costs. “It’s more of a tenant’s market in the office sector now,” he remarked, but added that no major structural changes have occurred in lease agreements overall.

Discussing legal risks in property transactions, Daniš emphasized that Slovakia faces many of the same issues as other European markets. In particular, two areas of growing concern are GDPR compliance and ESG (Environmental, Social, and Governance) regulations. “Recently, clients have become more focused on data protection clauses in lease agreements,” Daniš said. Additionally, the rise of ESG standards presents new challenges for developers and landlords who must now ensure their properties meet evolving European regulations and internal ESG compliance rules of corporate tenants. “These are new risks that we didn’t see in the past but are increasingly important in today’s market,” he added.

Turning to industrial and retail properties, Daniš pointed out that location and infrastructure are the primary concerns for industrial real estate. “For industrial properties, it’s typically about access to public roads and utility networks,” he said. Legal risks often revolve around land acquisition, especially when properties are purchased in various stages of development.

For retail properties, lease agreements remain a critical focus. Daniš explained that rental income is the main driver for retail property owners, but added that ESG standards are becoming a major consideration. “ESG compliance could drive up development costs and, in turn, impact rents,” he noted.

Looking ahead, Daniš sees opportunities for growth in Slovakia’s industrial and residential real estate sectors. “There’s still room for expansion, particularly in industrial properties,” he said, citing strong interest from companies. The residential market is also appealing due to a shortage of housing, making it attractive to investors.

However, Daniš acknowledged that the office and retail markets are highly competitive, giving tenants a strong position in lease negotiations. Despite this, he believes the competitiveness in these sectors opens doors for growth in other areas.

In conclusion, Daniš stressed the importance of maintaining momentum in the real estate market. “It’s crucial that there’s consistent activity—new projects, financings, leases, and acquisitions. Without these, the market stagnates, which is bad for everyone,” he warned. Moving forward, attracting new investors will be key to ensuring the continued growth of Slovakia’s real estate sector.

Panattoni’s sustainable strategy for Czech and Slovak industrial real estate

Panattoni, a leading developer in industrial real estate, is navigating an evolving landscape in the Czech Republic and Slovakia. In an exclusive interview with CIJ EUROPE, Pavel Sovička, Managing Director the Czech Republic and Slovakia, several key trends are reshaping the market, from the effects of the Green Deal to nearshoring opportunities and the push for automation. The company is positioning itself at the forefront of these changes, focusing on sustainability, efficiency, and bespoke solutions to meet the demands of its customers.

One of the most significant trends identified by Sovička is the shift toward sustainability, accelerated by the Green Deal and the growing importance of energy efficiency. As companies prioritize reducing their carbon footprints, they are moving away from fossil fuels, opting for alternatives like heat pumps. “The Green Deal effect is driving the demand for more efficient buildings,” says Sovička. This is particularly evident in the growing number of businesses pursuing automation, energy-efficient warehouses, and sustainable practices.

In line with this trend, Panattoni is aligning its projects with the European Union’s taxonomy, which sets out standards for sustainable investment. For instance, the company ensures that all its developments are certified by BREEAM New Construction, with many achieving excellence ratings. Brownfield developments, which involve repurposing former industrial sites, are also a significant focus for Panattoni. These projects not only help recycle materials but also contribute to reducing the environmental impact of new constructions.

Automation is playing a critical role in shaping the demand for industrial real estate. Sovička highlights that companies like Tchibo and ZF Corporation are leading the charge by implementing automation in their distribution centers. For example, Panattoni recently upgraded Tchibo’s facility to integrate advanced automated systems, reducing the need for manual labor and allowing the company to operate with significantly fewer employees while boosting efficiency.

Consolidation is another emerging trend, with businesses looking to centralize operations. “Instead of scattered warehouses, companies are now consolidating into more efficient, larger spaces,” says Sovička. This shift is especially prominent in sectors like automotive, where companies are preparing for future growth despite ongoing economic challenges.

As businesses adopt new technologies and pursue automation, the demand for built-to-suit facilities has risen. Sovička points out that vacancy rates in the Czech Republic remain low, with many companies requiring specialized spaces that can’t be found in speculative developments. “A lot of these projects need specialized buildings, and it’s difficult to adjust the technology to existing spaces,” he explains.

This trend is particularly noticeable in sectors like logistics, where proximity to consumers and operational efficiency are paramount. Panattoni is responding by focusing on large-scale, built-to-suit projects that can accommodate future growth and technological advancements.

Despite the current economic slowdown, Sovička sees opportunities for growth, particularly in nearshoring. As global supply chains continue to adjust post-pandemic, European companies are increasingly looking to relocate production closer to home. This is particularly true for automotive companies, which are seeking alternatives to Asian manufacturers.

Panattoni is preparing for this shift by developing large-scale sites in both the Czech Republic and Slovakia. In the Ostrava region, for instance, the company is working on projects like the Mošnov multimodal logistics hub and a former mine site, both of which are positioned to attract major investments from industries like automotive and semiconductors.

Looking ahead, Sovička acknowledges several challenges, particularly in securing permits and preparing sites for development. In the Czech Republic, the process for obtaining building permits is notoriously slow, with timelines ranging from two to eight years. This is a major hurdle for developers like Panattoni, especially in comparison to markets like Germany and Poland, where projects can begin within months after receiving permits.

However, Sovička remains optimistic. He believes that the availability of large, well-prepared sites with sufficient infrastructure, particularly in terms of electricity and water, will be a key factor in Panattoni’s future success. The company is also committed to staying ahead of its competitors by focusing on sustainable building practices and ensuring its developments meet the highest global standards.

As Panattoni continues to expand its presence in the region, Sovička emphasizes the importance of collaboration and partnerships with both customers and investors. By offering tailored solutions and maintaining a flexible approach, Panattoni is positioning itself as a leader in the industrial real estate market, ready to meet the evolving needs of businesses in the Czech Republic and Slovakia.

Panattoni’s strategic focus on sustainability, automation, and large-scale developments is shaping the future of industrial real estate in Central Europe. As businesses adapt to new challenges, including nearshoring, energy efficiency, and technological advancements, Panattoni is poised to provide the infrastructure needed to support these changes. With a commitment to innovation and sustainability, the company is setting a new standard for industrial real estate in the region.

Genesis Property Drives Sustainability in Romanian Real Estate: Interview with Ioan Bejan – P2

In a recent CIJ EUROPE Q&A, Ioan Bejan, Sustainability Director at Genesis Property in Bucharest, Romania, discussed the company’s focus on sustainability. Part two.

Examples include smart building systems that leverage AI and IoT to optimize energy usage, lighting, and HVAC performance in real-time. In addition to our use of solar panels, as previously mentioned, we are also investigating new renewable energy solutions, such as heat pumps, to further reduce our carbon footprint. We are also exploring sustainable construction materials, including low-carbon concrete and recycled materials, to minimize environmental impact. Innovations in water management, such as rainwater harvesting and greywater recycling, are being considered to promote greater resource efficiency.

Currently, we are analysing software solutions to help us capture, calculate, track, and reduce our carbon footprint more effectively. Our ongoing focus is on reducing air pollution, increasing green spaces, and promoting biodiversity, which remains a top priority for us. Beyond office spaces, YUNITY Park features a 1,000-square-meter urban forest, which brings multiple benefits, such as the reduction of air pollution as well as noise pollution and the regulation of temperature in the area. It also serves as a barrier against noise and provides protection from winds.

CIJ: How do you see sustainability evolving in the real estate industry over the next 5–10 years?

Given the new economic realities shaped by recent geopolitical developments, we believe that companies cannot evolve and prosper in an environment plagued by endless crises and unmanageable, often unpredictable, risks. Despite years of corporate commitments, global carbon emissions continue to rise, which suggests that the ESG agenda has not yet delivered the expected results, and it will be difficult to achieve the goals of the Paris Agreement by 2030. For these reasons, the current ESG agenda, in its present form, has little chance of delivering the necessary results without a radical shift. A change in mindset is urgently needed, and we may need to strengthen long-term regulations or rethink certain measures to address the challenges we face more effectively.

In the decade ahead, companies must not only compete for short-term gains and market share but also focus on building long-term resilience. To conclude, new technologies will evolve significantly, and we will see the emergence of more regulations and stricter standards, particularly regarding energy efficiency in buildings and construction approvals. Additionally, tenant expectations for eco-friendly, healthier environments will push developers to prioritize sustainable, resilient buildings that are equipped to meet future environmental challenges.

CIJ: How do you stay compliant with national and international sustainability regulations and standards in your real estate projects?

Since we are not a publicly listed company, we have not been required to comply with any sustainability reporting regulations up until now. However, since 2021, we have voluntarily and transparently reported our sustainability performance in accordance with the UN Global Compact’s reporting framework. As previously mentioned, all our buildings are currently undergoing recertification to meet the stringent requirements of the BREEAM Outstanding standard.

Additionally, starting this year, Genesis Property measures and reports its ESG performance to the Global Real Estate Sustainability Benchmark (GRESB), a rigorous global assessment of real estate investments that aligns with the latest international sustainability reporting standards. While the new Corporate Sustainability Reporting Directive (CSRD) will make it mandatory for us to disclose our sustainability performance starting in 2026 (for activities conducted in 2025), we are confident that we are well on track and fully prepared to meet this objective successfully.

CIJ: How do you measure and report on the environmental impact of your developments?

One year ago, we issued our first Scope 1 and Scope 2 Greenhouse Gas Emissions Report, which was prepared in accordance with the GHG Protocol methodology. Based on this report, we registered our near-term and long-term emissions reduction commitments with the Science Based Targets initiative (SBTi). Moreover, Genesis Property has already received SBTi validation for its Near-Term Target. The next major goal for Genesis Property is to obtain, by 2026 at the latest, validation from SBTi for its long-term CO2 emissions reduction target.

Additionally, as already mentioned above, starting this year Genesis Property measures and reports its ESG performance to GRESB. All these activities are conducted entirely in-house by our team, which has acquired the necessary knowledge and skills through an intensive training program.

CIJ: What are the most significant challenges you’ve encountered in implementing sustainable practices in real estate development?

The main challenge we face is finding the right balance between ensuring short-term operational profitability and securing long-term funding to support necessary investments in new technologies, as well as adapting existing assets to meet evolving standards. Additionally, identifying and developing the new skills required in key areas such as GHG emissions management, renewable energy, and circular economy practices—while also addressing shifts in employer habits and mindsets—have posed significant challenges that we continue to navigate.

PSN advances redevelopment in Pardubice with new parking facility and Grand Centre renovation

PSN has recently achieved two major milestones in Pardubice: the successful completion of the Grand Parking House and significant progress on the restoration of the historic Grand shopping centre. These projects are part of a broader initiative to revitalize the city’s central infrastructure and enhance urban living spaces.

The newly completed Grand Parking House, located in the heart of Pardubice, offers 269 parking spaces and operates 24/7, with flexible day and night rates, weekend discounts, and long-term rental options. Designed with an eco-conscious approach, the parking facility features a green facade covered in live plants, set to flourish in the spring, creating a pleasant and sustainable urban environment. The parking house also includes designated spaces for motorcycles and wheelchair users, reflecting PSN’s commitment to accessibility.

“The construction of the parking house was a key prerequisite for embarking on the complex restoration of the historic Grand building,” shared Ondřej Heřman, Director of PSN’s Pardubice branch. “The addition of much-needed parking will benefit local residents and visitors to the Grand shopping centre alike.”

Regional construction companies under the Enteria holding were instrumental in these developments, with Marhold leading the construction of the parking house. The project required complex coordination, including the relocation of a hot water pipeline and sensitivity to surrounding historical sites, highlighting PSN’s dedication to thoughtful urban development.

Meanwhile, PSN’s restoration of the Grand building—a functionalist gem by architect Josef Gočár—aims to restore its First Republic glory while transforming it into a modern commercial hub. Scheduled for completion next autumn, the renovated space will blend historic character with contemporary design by the renowned architectural studio OVA. When finished, the centre will house over 3,500 square meters of retail space, including 29 rental units, a food hall, and an innovative coworking space, offering diverse amenities for locals and tourists.

Progress on the Grand building’s overhaul is well underway, with completed demolitions and the installation of key structural elements. The centre will also feature a stunning glass atrium connecting the Grand building to the historic Kraus Villa, an architectural highlight enhanced by a glass installation from Czech glassworks Lasvit.

The revamped Grand shopping centre will welcome back popular brands such as CineStar in a boutique cinema format, dm drugstore, and the Terranova fashion brand. A modernized BILLA supermarket will also open on the underground floor, catering to daily customer needs. Tenant handovers are slated for June 2025, with the grand reopening planned for autumn.

In these projects, PSN is not only enhancing urban convenience but also championing environmental sustainability and historic preservation, setting a new benchmark for urban development in Pardubice.

The current state of the Czech real estate market: Insights from Martin Kubanek

In a recent CIJ EUROPE discussion with Martin Kubanek, a partner at Schoenherr law firm, shared his expertise on the challenges and trends shaping the real estate market in the Czech Republic.

High interest rates are currently the most significant challenge facing the transaction area. Buyers are struggling with elevated bank financing costs, prompting them to seek discounts on properties. However, sellers so far have remained hesitant to lower their asking prices, often relying on outdated valuations. This discrepancy has created a considerable gap between offered prices and selling prices. Kubanek expressed hope that central banks will continue gradually reducing interest rates, which could lead to a revival in transaction activity in the first half of the next year if rates normalize.

The new Building Act, which took effect in July, poses considerable hurdles for developers. Kubanek described the situation as a critical citing failures in digitalization efforts and the overwhelming workload facing local building authorities. Many investors rushed to submit applications under the old regime before the new legislation was implemented, leading to a challenging interim period for both authorities and investors awaiting the outcomes of the new regulations.

While post-M&A disputes regarding earn-outs and purchase prices are still common, Kubanek noted that the rate of disputes appears stable, without a significant increase or decrease in percentage.

The new Building Act has shifted the focus towards structuring some transactions for closing at a time when a detailed project documentation is finalized and a building permit (which includes a zoning approval) is issued whereas under the old regime a zoning permit was sufficient. . Kubanek also acknowledged that most transactions are structured as share deals rather than asset deals , the specific details often require clarification from tax advisors.

Foreign investors are not facing significant legal barriers in property purchases. The Czech Republic remains welcoming to foreign investment compared to other regional countries. However, the market is becoming increasingly domestic, with many foreign investors shifting their attention to markets in Poland and Western Europe instead.

Developers continue to face legal challenges regarding zoning permits under the old regime.. Recently, the Czech government has tightened regulations on converting agricultural land to building land, complicating what was previously considered a formality. This added complexity has resulted in delays and disputes that can halt projects, as developers must now navigate the stricter rules around land requalification.

In terms of urban development, Prague still lacks a comprehensive metropolitan plan, leading to fragmented discussions between local authorities and developers. Each district is navigating its own development priorities, resulting in inconsistencies in urban planning.

Kubanek highlighted historical easements as a common complication in real estate contracts, particularly in due diligence reviews. Many easements related to state-owned companies are unregistered, which can lead to issues, especially in brownfield projects. Environmental pollution concerns are also significant, requiring thorough due diligence and indemnity agreements from sellers.

Looking ahead, Kubanek anticipates that advancements in artificial intelligence and digitalization will streamline planning and property management processes. He believes these developments will enhance efficiency in real estate development and management, with automated systems playing a larger role under human oversight.

For those navigating the evolving real estate market, Kubanek emphasizes the importance of assembling a competent team. A combination of skilled real estate agents, legal advisors, tax consultants, and technical advisors is crucial to ensuring smooth transactions and minimizing surprises.

The permitting process in the Czech Republic currently lags behind countries like Poland, largely due to bureaucratic complications and political pressure to preserve agricultural land. Many clients focus solely on Prague, overlooking potential opportunities in other regional cities like Brno and Ostrava. Kubanek suggests that a more diversified approach to investment could yield fruitful results.

Finally, the market for hotel assets in Prague has seen a surge of interest following the COVID-19 pandemic. Major hotel properties in Prague are currently for sale, attracting both domestic and international buyers. However, pricing remains a critical factor, as current high occupancy rates might lead sellers to believe they can secure peak prices. The sustainability of these occupancy levels, however, is uncertain.

As the Czech real estate market continues to evolve, Martin Kubanek’s insights reveal a landscape marked by both challenges and opportunities, with stakeholders navigating legal complexities and changing market dynamics.

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