FutureMeds adds 592 sqm to Wrocław headquarters at Infinity

FutureMeds is expanding its operations at the Infinity office building in Wrocław, leasing an additional 592 sqm as the clinical research company increases its headquarters capacity in Poland.

The new space is located on the fourth floor and has been secured under a long-term agreement. Once the expansion is completed, FutureMeds’ international headquarters and medical clinic will occupy more than 1,700 sqm in the building. The additional premises are scheduled to be handed over in September 2026 and will be delivered on a turnkey basis.

FutureMeds has operated from Infinity since 2023. Its clinic is located on the ground floor, while its international headquarters currently occupy space on the first floor. The latest lease will provide additional offices as the company’s organisation and European clinical research network continue to expand.

Established in 2019, FutureMeds operates more than 30 clinical research locations across Poland, the UK, Spain, Germany, Bulgaria, Romania and Ukraine. Its Polish network consists of seven centres in six cities: Wrocław, Warsaw, Kraków, Łódź, Olsztyn and Gdynia. Wrocław also serves as the company’s international headquarters.

Radosław Janiak, CEO of FutureMeds, said the additional space forms part of the company’s continued development in Wrocław and its plans to strengthen Poland’s role within its European clinical research operations.

The transaction is also the third expansion completed by an existing tenant at Infinity, according to Avestus Real Estate. Marta Kiernicka-Szarska, Wrocław Leasing Director at Avestus Real Estate in Poland, said occupiers in Wrocław are becoming increasingly selective, with building quality, location, landlord flexibility and the ability to adapt space becoming important factors alongside the amount of space available. She also pointed to the limited pipeline of new office development in the city.

Infinity is a seven-storey Class A property comprising 18,727 sqm of office accommodation and 1,561 sqm of retail and service space. The building has a three-level underground car park with 311 spaces, EV charging points and cycling facilities including 128 bicycle spaces, changing rooms and showers.

The property was developed by Avestus Real Estate together with Alchemy Properties and was built in accordance with BREEAM Excellent requirements. Its occupiers include companies from the technology, healthcare, aviation, residential development and professional-services sectors.

AD Studio designed Infinity, Eiffage Polska Budownictwo served as general contractor and JLL was responsible for the project’s commercialisation.

Bulgaria sets 2030 energy agenda around nuclear power, grid investment and market reform

Bulgaria has adopted a new four-year energy programme setting out government priorities through 2030, with nuclear generation, electricity and gas infrastructure, storage capacity and the gradual liberalisation of the household power market forming the main elements of the plan.

Approved by the government on 12 August 2026, the programme seeks to balance security of supply and household affordability with the need to maintain competitive energy costs for Bulgarian industry. It also establishes a longer planning horizon, with a national sustainable energy strategy extending to 2050 and periodic reviews of future consumption, generation capacity and system requirements.

One of the most significant elements is the continued role assigned to nuclear power. Bulgaria intends to extend the operating life of Units 5 and 6 at the Kozloduy nuclear power plant while continuing preparations for Units 7 and 8 using Westinghouse AP1000 technology. Preparatory work towards a final investment decision for the additional units is scheduled for October 2026.

The government also intends to assess the potential introduction of small modular reactors. A national assessment of possible new nuclear projects is planned by September 2027, followed by a regulatory and administrative roadmap for SMRs in early 2028.

Coal-fired capacity will not be removed immediately from Bulgaria’s energy system. Instead, the programme envisages retaining part of the country’s coal generation capability to provide additional capacity during periods of unusually high demand or disruption. This approach is intended to accompany the economic transition of Bulgaria’s traditional mining regions rather than relying on rapid closures.

Hydropower and electricity storage represent another major part of the programme. Restoration of capacity at the Chaira pumped-storage hydroelectric facility is targeted for June 2028, while the government plans to assess further modernisation of existing hydroelectric facilities and opportunities for additional pumped-storage developments.

The strategy could generate a substantial pipeline of infrastructure investment. Bulgaria plans approximately 700 kilometres of new 400 kV transmission lines by the end of 2029, together with four new 400/110 kV substations and eight additional 400 kV switchgear installations.

Electricity distribution networks are also due to undergo further digitalisation, including wider deployment of smart metering. Legislative changes planned for September 2026 are intended to simplify connections for electricity generation, storage and consumption facilities.

Gas infrastructure remains part of the country’s diversification strategy. Transmission capacity between Greece and Bulgaria is scheduled to increase to 93 GWh per day by October 2026, while capacity towards Romania at Negru Voda/Kardam is targeted to reach 295 GWh per day by April 2027.

Expansion of the Chiren underground gas storage facility is expected to increase capacity to 1 billion cubic metres by the end of 2029. Together with electricity-network investment and cross-border connections, the projects form part of Bulgaria’s ambition to strengthen its position as an energy transit and trading centre for Southeast Europe.

Renewables will develop alongside nuclear, hydro, gas and existing conventional generation rather than through a policy centred on a single technology. Planned amendments to the Energy Act include provisions supporting decentralised generation, energy communities, hydrogen and storage, while changes to energy-efficiency legislation are intended to accelerate improvements to Bulgaria’s building stock.

This could have implications for the country’s property and development sectors. Greater access to decentralised generation, storage and energy-sharing arrangements could support investment in photovoltaic systems and battery storage associated with commercial, logistics, industrial and residential properties. Changes to building-efficiency requirements could also increase the importance of renovation programmes across Bulgaria’s existing building stock.

Another major policy issue is electricity-market liberalisation. Rather than immediately exposing households fully to market prices, the government intends to conduct a socio-economic assessment before further changes are introduced.

An information system identifying energy-poor and vulnerable households is planned by December 2026. The government will then examine potential consumer-support structures, including models under which a basic level of electricity consumption could receive more favourable pricing. A framework for phased liberalisation is scheduled for September 2027.

State-owned energy companies will meanwhile face greater scrutiny. Independent financial and management reviews are expected by October 2026, followed by common performance measures covering financial discipline, operational efficiency and governance.

The government also intends to examine whether minority interests in state energy businesses could eventually be offered through the Bulgarian Stock Exchange while retaining state control. At this stage, however, this is an assessment rather than a confirmed privatisation programme.

Workforce shortages have also been incorporated into the energy strategy. Bulgaria plans to map occupations where shortages of engineers and technical specialists could constrain investment and establish a National Programme for Young Specialists in Energy beginning with the 2027/2028 academic year. Scholarships, internships and dual-training arrangements are expected to form part of the initiative.

The scale of the programme means implementation will extend well beyond immediate legislative changes. Amendments covering energy markets and efficiency are expected during autumn 2026, while major infrastructure milestones are concentrated between 2027 and 2030.

For Bulgaria’s investment market, the programme points towards several years of capital expenditure across nuclear generation, electricity transmission, gas storage, hydropower, renewable generation, battery storage and building efficiency. The more important question will be how quickly the individual measures progress from government targets into financed and contracted projects.

If implemented broadly according to schedule, the programme would reinforce Bulgaria’s position as an increasingly important part of Southeast Europe’s interconnected energy infrastructure while maintaining a relatively diversified domestic generation base.

Source: CMS

Green House Development launches sales of 154 apartments at Wave Ustka

Green House Development has started pre-sales of apartments at Wave Ustka Thermal & Spa, its third development under the Wave brand on Poland’s Baltic coast. The first phase covers 154 apartments in Building A, for which a building permit has already been obtained.

The full development is planned to comprise four interconnected buildings with approximately 618 apartments, a year-round thermal and spa area and almost 6,700 sqm of commercial space. The project will be located close to the beach in Ustka, surrounded by pine forest and around a ten-minute walk from the town centre.

Construction of Building A is scheduled to begin in the first quarter of 2027 and completion is planned for the first quarter of 2029. The building will include an underground garage, restaurant, swimming pool, sauna area, gym and games room, as well as a rooftop viewing terrace.

The project represents the next stage in Green House Development’s expansion of the Wave concept. Its first development, Wave Międzyzdroje Resort & Spa, comprises more than 400 apartments and is operated by the developer. According to the company, almost all of the apartments have been sold.

The second development, Wave Świnoujście Thermal & Spa, is scheduled for completion in the second quarter of 2029. Green House Development reports that almost 60% of the initial 218 apartments were sold during the first six months of sales.

Wave Ustka has been designed by MODO architektura. The four buildings will range between nine and ten storeys and will be positioned separately within the site rather than forming a continuous development along the beachfront. The buildings will be connected by internal passages and share an underground garage.

Building A will be offered under a private ownership model without compulsory participation in a rental programme. Apartments will be subject to 23% VAT, with potential VAT deductions depending on the purchaser’s circumstances and applicable regulations. Owners wishing to rent their units will be able to use optional management services, including those offered by Solarento.

“Building A is being offered to private owners without mandatory rental management. Our conversations with clients show that some of them want to own an apartment by the sea on their own terms, use it whenever they wish and decide independently whether and when to rent it out,” said Adam Sadowski, President of the Management Board of Green House Development.

A central part of the completed development will be the thermal and spa area. The developer has not provided a final size for the Ustka facility but says it will be comparable with the wellness component being developed at Wave Świnoujście, which covers more than 4,000 sqm.

Green House Development intends the leisure and hospitality facilities to operate throughout the year rather than only during the main Baltic summer season. Restaurants, swimming pools, wellness facilities and other commercial uses are planned as part of the completed complex.

The development is approximately 120 km from the Tricity area. According to the developer, its proximity to both Ustka and the beach is intended to combine access to the town’s existing infrastructure with a less densely developed coastal setting.

Further stages of Wave Ustka Thermal & Spa will be introduced as the necessary building permits are obtained, eventually bringing the planned total to around 618 apartments.

Czech producer prices rise in July as construction costs remain elevated

fletcher@cijeurope.com
18 August 2026
Business, Construction, Energy, Manufacturing

Producer price pressures in the Czech economy strengthened moderately in July 2026, with industrial prices recording both monthly and annual increases and construction costs continuing to rise faster than prices across much of the wider economy.

Industrial producer prices increased by 0.3% compared with June and were 1.6% higher than a year earlier, accelerating from annual growth of 1.3% in June, according to the Czech Statistical Office (CZSO).

The figures indicate that inflationary pressures at the producer level remain uneven. While industrial and construction-related costs are rising, agricultural prices have continued to fall sharply and some categories of manufactured goods are also cheaper than a year ago.

Construction remains one of the areas experiencing the strongest cost growth. Estimated construction work prices increased by 0.2% month-on-month in July and were 4.5% higher year-on-year. More significantly for developers and contractors, prices of materials and products used in construction increased by 6.9% compared with July 2025, accelerating slightly from 6.7% in June.

The continuing increase in material costs suggests that the Czech construction sector is still facing meaningful cost pressure despite the broader moderation of inflation compared with the peaks experienced earlier in the decade. For developers, this could continue to influence construction budgets and the economics of projects where margins are already being affected by financing, labour and land costs.

Industrial prices showed a more moderate increase overall, although substantial differences remain between sectors.

Prices for chemicals and chemical products were 14.5% higher than a year earlier, while rubber and plastic products increased by 5.7% and other non-metallic mineral products by 4.0%. Intermediate goods recorded an annual increase of 4.4%, while energy prices were 2.2% higher.

Electricity, gas, steam and air-conditioning prices, however, were 3.9% lower than a year earlier. Prices of motor vehicles, trailers and semi-trailers declined by 1.2%, including a 1.9% fall in parts and accessories.

Food manufacturing also recorded significant price declines. Producer prices for food products were 5.6% lower year-on-year, including a 15.1% decline for dairy products and a 7.2% decrease for preserved meat and meat products.

Agriculture recorded the largest overall fall among the sectors monitored by CZSO. Agricultural producer prices declined by 1.3% from June and were 13.0% below their level a year earlier, following a 13.5% annual decline in June.

Crop prices decreased by 8.1% year-on-year, including a 13.4% fall in cereals. Animal production prices declined by 18.1%, with prices for pigs for slaughter down 27.5% and milk prices falling 26.7%.

The agricultural figures could eventually contribute to lower cost pressures further along the food supply chain, although movements in producer prices do not necessarily translate directly or immediately into consumer prices.

Business services presented a different picture. Producer prices in the sector fell 1.8% compared with June but remained 2.8% higher year-on-year. The sharp monthly decline was influenced by advertising and market research, where prices fell 19.8%, and programming and broadcasting services, which recorded a 20.8% decrease.

Excluding advertising, business service prices were unchanged month-on-month and increased 2.1% annually, suggesting that the headline monthly decline was heavily influenced by individual service categories.

Several business services nevertheless continued to record relatively strong annual increases. Employment services were 10.1% more expensive than a year earlier, information services increased by 6.5% and security and investigation services by 6.3%. Insurance-related services increased by 3.2%.

The latest Czech figures also contrast with the broader European producer-price environment recorded a month earlier. Preliminary Eurostat data cited by CZSO showed industrial producer prices across the EU increasing by 4.7% year-on-year in June 2026, compared with 1.3% in Czechia during the same month.

There were substantial differences between individual EU economies. Bulgaria recorded an annual increase of 18.2% and Romania 14.3%, while Germany stood at 1.9%, Poland and Austria at 2.4%, and Slovakia at 3.7%.

For the Czech real estate and construction sectors, the July data therefore present a mixed picture. Overall industrial producer inflation remains relatively contained, while falling agricultural and some energy-related prices point to easing pressure elsewhere in the economy. Construction inputs, however, continue to move in the opposite direction.

With construction materials and products almost 7% more expensive than a year ago and construction work prices up 4.5%, development costs remain an important consideration for new residential, commercial and infrastructure projects. The divergence suggests that even as general producer inflation remains moderate, the cost environment facing the property development sector has yet to normalise fully.

EU Corporate Strain Builds as Insolvencies Climb and Business Creation Slows

Financial pressure on European companies increased during the second quarter of 2026, with insolvencies moving sharply higher while the creation of new businesses lost momentum. The figures point to a more difficult operating environment across parts of the European economy, although conditions vary considerably between industries.

Across the EU, declarations of bankruptcy increased by 5.7% compared with the previous quarter, while new company registrations declined by 0.5%. Within the euro area, the increase in insolvencies was stronger at 6.9%, while registrations slipped by 0.1%.

The latest increase takes EU bankruptcy declarations to their highest point since the comparable Eurostat series began in the first quarter of 2019. This follows a long upward movement that began after the pandemic period, interrupted by declines in the final quarter of 2025 and the opening three months of 2026.

The business formation figures tell a somewhat different story. Registrations had generally strengthened between 2022 and 2024 and again during much of 2025. Activity has subsequently softened, with declines recorded in both the first and second quarters of this year. Despite the recent slowdown, registration levels in most industries remain above those recorded immediately before the pandemic.

The overall EU figures also conceal substantial differences between sectors.

Industry recorded the largest reduction in new business registrations during the second quarter, falling 3.6% from the previous three months. Accommodation and food services declined by 3.4%, while education and social activities were down 3.2%.

Technology-related businesses moved in the opposite direction. Registrations in information and communication increased by 8.8%, continuing the expansion seen in the sector since the second quarter of 2025. Construction also recorded growth, with registrations increasing by 1.0%, while financial services were unchanged.

The insolvency figures show an equally fragmented picture.

Bankruptcy declarations increased across five of the eight economic sectors monitored. Education and social activities recorded the largest quarterly increase at 21.1%, followed by transport at 11.4% and financial services at 6.8%.

Construction was one of the sectors moving against the wider trend, with bankruptcy declarations declining by 1.7%. Accommodation and food services recorded a 2.6% reduction, while insolvencies in trade decreased by 1.2%.

The construction figures are particularly relevant for the European property market. A year earlier, during the second quarter of 2025, construction bankruptcies had increased by 8.1% quarter-on-quarter. The latest figures therefore indicate an improvement in the direction of travel for the sector, even as corporate failures across the wider economy are increasing.

Differences between individual EU countries are also considerable. Estonia recorded a 31.8% quarterly increase in bankruptcy declarations, followed by Greece at 31.6% and Croatia at 20.5%. At the opposite end of the ranking, Malta recorded a 50% decline, Cyprus 41.7% and Slovakia 33.5%, although Eurostat cautions that relatively small numbers of cases can produce substantial percentage movements in smaller economies.

Business creation showed similarly wide geographical variations. Ireland recorded a 20.4% increase in registrations, followed by Belgium at 8.2% and Sweden at 7.6%. Luxembourg recorded the largest decline at 24.2%, followed by Lithuania at 12.4% and Denmark at 8.2%.

For the commercial property market, the figures provide another indicator of increasingly uneven occupier conditions across Europe. Rising insolvencies can translate into greater tenant risk for landlords and lenders, particularly where individual sectors are experiencing sustained financial pressure. At the same time, continued company formation in areas such as technology and construction indicates that the deterioration is far from uniform.

The contrast with the same period last year is also notable. In the second quarter of 2025, EU business registrations increased by 4.6% and bankruptcies rose by only 1.7%. One year later, the direction has changed: fewer businesses are being established while corporate failures are increasing at a faster quarterly rate.

The figures do not by themselves indicate a broad corporate downturn. Bankruptcy statistics can be influenced by national legal frameworks, delayed restructuring and sector-specific conditions, while quarterly movements can be volatile. Nevertheless, the combination of softer business creation and the highest level of insolvency declarations in the available EU series suggests that financial resilience among European companies will remain an important indicator for investors, lenders and commercial property owners during the second half of 2026.

Panama City Office Market Rebalances as Excess Supply Recedes

Panama City’s office market is continuing to rebalance in 2026, with availability falling to 23.73% in the first quarter from more than 30% earlier in the decade, while positive absorption and a limited development pipeline gradually reduce the supply surplus accumulated during the city’s previous construction cycle. The improvement is measurable, but the market remains favourable to occupiers in many locations. More than one fifth of monitored office stock is still available, giving companies considerable choice and limiting landlords’ ability to increase rents uniformly across the city.

At the end of the first quarter of 2026, Panama City’s monitored office inventory stood at approximately 1.83 million square metres, according to Newmark. Net absorption during the quarter reached around 8,788 square metres, while average advertised rents were approximately USD 16.86 per square metre per month. These figures extend an improvement already visible during 2025. At the end of the second quarter last year, the market contained approximately 1.83 million square metres of office space, with an availability rate of 24.76%. Quarterly net absorption reached 7,609 square metres, compared with 2,895 square metres during the first three months of 2025, while average advertised rents stood at USD 15.23 per square metre per month.

By the third quarter of 2025, availability had declined further to approximately 24.6%, while inventory remained essentially unchanged. No significant new office supply was under construction at that stage, meaning the improvement was being driven primarily by absorption of existing space rather than the arrival of new buildings. The first-quarter 2026 availability rate of 23.73% therefore represents another step towards a more balanced market.

Viewed over a longer period, the change is more pronounced. Panama City’s office availability stood at approximately 30.9% in 2021, when earlier speculative development combined with the disruption caused by the pandemic to leave a substantial amount of space without occupiers. By 2023, the rate had fallen to approximately 25.2% and has subsequently continued to decline. Panama City has therefore absorbed a meaningful portion of the surplus accumulated during the previous development cycle, although current availability remains substantial.

A crucial feature of this adjustment is the absence of significant new speculative supply. Office inventory has remained close to 1.83 million square metres since at least the first half of 2025. With no substantial speculative pipeline currently adding to inventory, positive absorption is gradually reducing available stock rather than being offset by major new completions. This supply constraint could become increasingly important if leasing activity remains positive through the remainder of 2026. However, the effects are unlikely to be distributed evenly because Panama City contains a diverse office stock ranging from modern corporate buildings to older properties facing considerably stronger competition for tenants.

The difference was already visible between individual submarkets during 2025. Costa del Este recorded an availability rate of approximately 19.6% in the second quarter, with average advertised rents of about USD 17.78 per square metre per month. Santa María was considerably tighter at approximately 12.7%, with rents around USD 16.47. Punta Pacifica, by comparison, recorded availability above 30%, while the traditional banking district stood at approximately 26.4%. The banking district remains by far the largest concentration of offices in the city, accounting for close to 953,000 square metres of Newmark’s monitored inventory.

These differences illustrate why the citywide availability rate does not fully describe current market conditions. Companies searching for modern space in a specific location, building category or floor configuration can encounter substantially less choice than the overall 23.73% figure suggests. At the same time, owners of older or less efficiently configured properties continue to compete in a market where occupiers retain numerous alternatives.

This divergence is becoming increasingly important as companies reconsider both the quantity and quality of office space they require. Lease events are providing opportunities for businesses to consolidate operations, upgrade their premises or move into buildings better suited to changing workplace requirements. Efficient floorplates, flexible layouts, technology, accessibility, parking, energy performance and surrounding amenities are becoming increasingly important factors in leasing decisions. The result is a gradual concentration of demand in stronger properties rather than a uniform recovery across the entire office stock.

This follows a broader pattern visible in Latin American office markets, where occupiers have increasingly favoured well-located and higher-quality buildings even in cities where overall availability remains elevated. Panama City is particularly exposed to this trend because the legacy of earlier development continues to provide companies with a broad range of alternatives. As availability declines, however, that negotiating advantage could gradually narrow for the most competitive properties.

Average advertised rents increased from approximately USD 15.23 per square metre per month in the second quarter of 2025 to USD 16.86 in the first quarter of 2026. The movement is consistent with a tightening market, although it should not be interpreted as a direct measure of rental growth. Changes in the composition and quality of available properties can affect average asking rents between reporting periods. Nor does the increase indicate that landlords have regained unrestricted pricing power. Availability of almost 24% remains substantial, while individual lease negotiations can differ significantly from advertised rates. Incentives, fit-out contributions, rent-free periods and contractual flexibility can materially alter the effective cost paid by an occupier.

For owners, the changing market is placing greater emphasis on the competitiveness of individual buildings. As companies gain opportunities to upgrade their premises without necessarily expanding their overall footprint, landlords of older stock face increasing pressure to modernise assets, improve commercial terms or accept longer periods without tenants. Prime and recently upgraded buildings in established business locations are likely to benefit first as availability declines, while secondary properties could take considerably longer to recover where floor layouts, mechanical systems, energy performance or amenities no longer meet corporate expectations.

Costa del Este is well positioned within this process. The district combines relatively modern office stock with residential development, retail, hotels and corporate infrastructure and has established itself as one of Panama City’s principal business locations outside the traditional financial centre. The banking district remains significantly larger and continues to accommodate financial institutions, professional services companies and corporate headquarters. Its scale and varied building stock, however, produce considerably different performance between individual properties. Punta Pacifica combines office and residential uses but its comparatively high availability shows that landlords continue to face substantial competition, while Santa María, although a much smaller office market, demonstrates the stronger position that limited, higher-quality supply can achieve.

The broader Panamanian economy provides a supportive backdrop for continued office absorption. The IMF expects real GDP growth of approximately 3.8% in 2026. Panama remains strongly oriented towards services, trade, logistics, finance and international business, sectors closely connected with demand for corporate premises. Panama City’s position as a regional headquarters location is particularly relevant, with international air connectivity, logistics infrastructure, the banking system, Panama’s dollarised economy and its position between North and South America helping establish the city as a base for multinational companies overseeing activities across Central America, the Caribbean and parts of South America.

This international corporate presence provides office demand beyond domestic economic expansion, although investment and business growth remain sensitive to international conditions and Panama’s own fiscal environment. For the office market, the current economic outlook points towards continued gradual recovery rather than rapid expansion. Limited new construction reduces the risk of another immediate supply shock, while economic growth provides existing buildings with an opportunity to absorb remaining space. However, with almost one quarter of monitored stock still available, market conditions remain some distance from those normally required to support another broad wave of speculative office development.

If availability continues to decline without a meaningful increase in new supply, competition for modern Grade A offices could tighten even while older and less competitive buildings retain substantial vacant space. This possibility reinforces the emerging division between stronger and weaker assets. For investors, acquiring office property simply because it appears inexpensive relative to replacement cost may not be sufficient if substantial capital expenditure is required to attract modern corporate occupiers. Buildings capable of being upgraded or repositioned could, however, benefit as overall availability continues to fall. Income stability, tenant quality, lease duration, operating efficiency and future refurbishment requirements are consequently becoming increasingly important considerations alongside acquisition price.

For existing landlords, asset management is therefore becoming one of the principal determinants of performance in 2026. Properties that have been modernised, offer competitive amenities and can accommodate changing occupier requirements are better positioned to capture companies relocating within the city. Buildings that have received limited investment risk becoming increasingly disconnected from improvements in the wider market.

The changing conditions also have implications for occupiers. Panama City remains broadly tenant-friendly, but the decline in availability from above 30% earlier in the decade to below 24% means companies searching for the strongest offices have fewer options than several years ago. This is particularly relevant for larger occupiers requiring substantial amounts of contiguous space, as headline availability can overstate the amount of accommodation capable of satisfying a large corporate requirement within a single building.

The central story of Panama City’s office sector in 2026 is therefore not a dramatic rise in rents or a return of speculative construction, but the continuing absorption of the supply surplus created during the previous development cycle. Inventory remains broadly unchanged, net absorption is positive and availability continues to decline. Together, these conditions are gradually restoring balance to a market that spent years working through the consequences of rapid development.

Yet availability approaching 24% means recovery should not be confused with scarcity. Companies still have considerable choice and landlords of less competitive properties continue to face pressure. Instead, Panama City is increasingly developing into a two-tier office market in which quality, location and asset management determine which buildings participate most strongly in the recovery.

If positive absorption continues while development remains constrained, 2026 could mark an important stage in Panama City’s transition from a market defined by excess office supply towards one where competition for the best corporate properties becomes progressively stronger. For owners and investors, the performance of individual buildings is therefore likely to matter considerably more than movements in the citywide average rent alone.

Source: © CIJ.World Research & Analysis Team

Basler selects Lubicz Park for permanent Krakow office

Basler AG has selected Lubicz Park in Krakow for its permanent local headquarters, leasing 335 sqm of office space in the Globalworth-owned complex. Knight Frank advised the company on the location process.

The German technology company, founded in 1988, develops machine vision systems used in industrial automation and quality control. Its products include industrial cameras, software and integrated vision solutions used across manufacturing, logistics, healthcare, electronics and transport.

Basler established its presence in Krakow in 2022, initially operating from serviced office space while recruiting and developing its local team. The move to Lubicz Park follows several years of expansion in the city, with the new office officially opened in July 2026.

“Krakow has been an attractive location for us from the beginning due to access to highly qualified specialists and the potential for the development of our team,” said Arndt Bake, General Manager of Go-to-Market EMEA at Basler. He added that Lubicz Park was selected based on the company’s workplace requirements and plans for further growth.

Lubicz Park provides more than 25,300 sqm of office space and is located close to Krakow’s Main Railway Station and the Mogilskie Roundabout transport interchange. The complex includes approximately 1,460 sqm of landscaped relaxation areas and facilities for cyclists.

The property holds BREEAM In-Use certification at Excellent level and an “Object without Barriers” accessibility certification.

Joanna Wanat, Asset Management & Leasing Manager at Globalworth, said the combination of the central location, building standards and tenant facilities continues to attract companies seeking well-connected office space in Krakow.

Knight Frank’s involvement with Basler dates back to 2021, when the company was assessing the possibility of establishing operations in Poland. The advisory firm subsequently supported Basler’s initial entry into Krakow and its transition from serviced offices to a conventional lease.

“Our cooperation with Basler began even before the decision on investment in Poland and included both support in getting to know the local business ecosystem and subsequent advice related to the development of the organisation,” said Aleksandra Markiewicz, Associate Director at Knight Frank.

The transaction adds another technology occupier to Krakow’s office market and illustrates the progression of an international company from flexible workspace during its initial market entry to a permanent office after establishing a local operation.

Ageing workforce reshapes Czech labour market as services drive employment growth

The Czech labour market continued to expand in the second quarter of 2026, but the latest employment figures point to a broader structural change taking place beneath the headline growth. An ageing workforce, rising educational levels, stronger employment in services and increasing use of part-time work are gradually changing the country’s employment profile.

The number of employed people aged 15 and over increased by 87,200 year-on-year to approximately 5.33 million in the second quarter. Compared with the previous quarter, seasonally adjusted employment increased by around 28,600.

Demographics are becoming an increasingly important part of this development. The average age of an employed person reached 44.8 years, compared with 41.3 years in the second quarter of 2010. The average was slightly higher among women, at 45.4 years, compared with 44.3 years among men.

Older employees are also accounting for a significant proportion of employment growth. The number of working people aged 60 and above increased by 39,500 compared with the same period last year, while employment among those aged 45 to 59 rose by 37,800. Younger workers aged between 15 and 24 also recorded an increase of 22,600, while employment among people aged 25 to 29 declined by 15,100. These movements partly reflect the changing age structure of the Czech population rather than employment conditions alone.

The ageing trend is particularly visible among people running businesses. The average employee was 44.4 years old, while self-employed people without employees averaged 46.3 years. Among entrepreneurs employing other people, the average age reached 50 years. Since 2010, the average age of this latter group has increased by 4.6 years.

At the same time, employment growth is increasingly concentrated in the service economy. Services added around 102,200 workers over the year, taking total employment in the sector to almost 3.39 million. Agriculture, forestry and fishing lost approximately 7,400 workers, while industry and construction together recorded a decline of around 7,800.

Some of the strongest increases were recorded in professional and knowledge-intensive activities. Employment in professional, scientific and technical activities rose by 54,100, or 21.3%, while real estate activities added 8,800 workers, representing an increase of 21.7%. Wholesale and retail trade and vehicle repair moved in the opposite direction, with employment declining by 33,300.

Changes are also emerging in the types of jobs being created. The number of managers increased by 27,700 year-on-year, while technicians and associate professionals added 79,300 workers. Employment in craft and related occupations, meanwhile, fell by 52,700.

The educational profile of the workforce is moving in a similar direction. Almost 1.6 million employed people had tertiary education in the second quarter, an increase of 102,500 compared with a year earlier. Employment among people with higher-level secondary qualifications also increased, while the numbers of workers with primary education or secondary education without an equivalent school-leaving qualification declined.

The employment rate for people aged 15 to 64 reached 76.1%, up 0.4 percentage points from the previous year. The rate was 80.4% among men and 71.7% among women.

Another notable change is the increasing role of shorter working arrangements. Around 549,400 people worked part-time during the quarter, nearly 50,000 more than a year earlier. Compared with 2018, the number has increased by more than 160,000.

Women continue to account for most part-time employment, representing 396,500 of the total. Around 16% of employed women worked reduced hours, compared with 5.4% of men. Among male part-time workers, older employees form an important group, with 64,900 of the 152,900 men working part-time aged 60 or above.

Despite the increase in employment, unemployment also moved moderately higher. Around 163,100 people were unemployed during the quarter, an increase of 17,100 compared with a year earlier. Long-term unemployment reached 50,400 people and accounted for just under one-third of the unemployed population.

The unemployment rate among people aged 15 to 64 consequently increased to 3.1%. Differences between regions remain pronounced. Moravskoslezsko recorded the highest rate at 5.6%, followed by Severozápad at 5.2%. Střední Čechy had the lowest rate at 1.5%, while Prague stood at 2.0%.

For employers, the figures suggest that labour availability increasingly needs to be considered alongside the changing composition of the workforce. Businesses are recruiting from an older population while employment growth is shifting towards services, professional occupations and workers with higher levels of education.

These developments may also have consequences for commercial real estate. Office occupiers competing for skilled employees are likely to place greater importance on accessibility, workplace quality and flexibility, while industrial and construction companies face a different challenge as their traditional labour pool ages and employment in these sectors declines.

The second-quarter figures therefore show a Czech labour market that remains relatively strong but is gradually being reshaped. Employment is growing, yet the expansion is not evenly distributed. Services and higher-skilled occupations are gaining workers, part-time employment is becoming more common and older people are playing a larger role in keeping the labour force supplied.

With the average Czech worker now approaching 45 years of age, demographics are moving from a long-term economic issue to an increasingly immediate consideration for companies deciding where to invest, recruit and expand.

Source: CSO

Poland’s Growth Map Shifts as Major Cities Pull Further Ahead

Poland’s economy continues to expand, but the pattern of growth is becoming increasingly uneven. The latest regional data show that investment, employment, innovation and population movements are becoming concentrated around the country’s strongest metropolitan economies, while a number of smaller regions face the combined challenge of ageing populations, outward migration and weaker economic activity.

The divide has important implications for real estate. Rather than treating Poland as a single growth market, developers and investors increasingly need to examine the economic and demographic conditions of individual cities and regions when assessing residential, office, logistics and industrial opportunities.

According to Statistics Poland’s latest regional assessment, Poland generated GDP of approximately PLN 3.65 trillion in 2024, equivalent to PLN 97,357 per inhabitant. However, performance varied considerably around the country. Wielkopolskie recorded GDP per capita of PLN 102,129, while Śląskie reached PLN 97,509 and Małopolskie PLN 87,269.

Warsaw remains in a category of its own. The capital and its surrounding economic area have developed into Poland’s dominant concentration of corporate activity, higher-value employment and investment. At the same time, regional centres including Kraków, Wrocław, Poznań and the Tricity continue to strengthen their roles as employment and business destinations.

This concentration is increasingly significant because Poland is simultaneously dealing with a long-term demographic challenge. Population decline at national level does not translate uniformly across the country. Major cities continue to attract people from smaller towns and regions, while international migration is providing an additional source of workers and residents in some of the strongest urban economies.

As a result, the property consequences of Poland’s demographic decline are considerably more complex than the national population figures might suggest.

Migration is reshaping local demand

The distinction is particularly visible in migration patterns. Major employment and university centres are better positioned to compensate for natural population decline by attracting people from elsewhere in Poland and abroad.

This has direct consequences for residential markets. Cities capable of generating employment and attracting younger workers can continue to experience demand for housing despite a shrinking national population. Conversely, markets experiencing both natural population decline and outward migration may face a progressively more difficult environment for large-scale residential development.

Housing construction already reflects some of these differences. Around 208,300 homes were completed across Poland in 2025, equivalent to 5.6 dwellings per 1,000 inhabitants. Małopolskie alone accounted for approximately 20,300 completions, with its construction rate exceeding the national average.

For developers, this means that national demographic forecasts provide only part of the information needed when evaluating development land. Employment growth, transport connections, universities, internal migration and the ability of individual cities to attract foreign workers can be equally important indicators of future housing requirements.

Labour is becoming increasingly important for industrial investment

The same demographic changes are beginning to influence the industrial and logistics market.

Poland has spent much of the past two decades expanding its position as a European manufacturing and distribution location. Infrastructure improvements, access to the EU single market and a substantial workforce have supported the development of logistics corridors and industrial clusters across the country.

Future expansion, however, will increasingly depend on the availability of workers in individual locations.

Poland’s employment rate stood at 56.8% in 2025, while unemployment was approximately 3.1%, according to Statistics Poland. The regional picture varies, meaning that investors considering manufacturing plants, distribution centres or other labour-intensive operations increasingly need to assess local workforce availability alongside land prices and motorway access.

This may favour established metropolitan and industrial regions capable of attracting workers from larger surrounding areas. It could also strengthen the importance of transport connections that allow employers to recruit from beyond the immediate municipality in which a project is located.

For logistics developers, labour availability may consequently become almost as important as proximity to motorway junctions and consumer markets when selecting future development locations.

Innovation is creating another layer of regional concentration

Poland’s research and technology economy shows an even stronger geographical concentration.

National expenditure on research and development reached approximately PLN 51.5 billion in 2024, equivalent to PLN 1,370 per inhabitant and around 1.41% of GDP. Małopolskie accounted for approximately PLN 7.4 billion, or PLN 2,156 per resident, substantially above the national average.

Mazowieckie recorded approximately PLN 3,368 of research and development expenditure per inhabitant, demonstrating the concentration of research institutions, technology companies and higher-value corporate activity around Warsaw.

These figures have implications for commercial property beyond conventional offices. Growth in technology, research and advanced manufacturing can generate demand for specialised laboratories, research facilities, data infrastructure and modern industrial space, while simultaneously supporting residential demand from skilled employees.

Universities also play an important role. Cities capable of retaining graduates and connecting academic institutions with private-sector investment have a stronger foundation for developing higher-value economic clusters.

Warsaw’s influence extends beyond the capital

The economic strength of Warsaw also demonstrates why regional analysis cannot be based solely on administrative boundaries.

Investment and employment generated by the capital increasingly extend into surrounding municipalities through residential development, logistics parks, data centres, business services and transport infrastructure.

This metropolitan expansion creates opportunities outside the traditional urban core. Rising land costs and limited development sites within major cities can push residential and commercial development towards surrounding municipalities, particularly where rail and road infrastructure provides efficient access to employment centres.

Similar patterns are emerging around other major Polish cities. The result is a gradual expansion of metropolitan investment zones rather than growth being restricted to administrative city boundaries.

Residential development faces two very different markets

For the housing sector, Poland’s regional divergence is creating increasingly different development conditions.

In expanding metropolitan areas, developers must respond to demand generated by employment, household formation and migration while dealing with higher land costs and planning constraints. In shrinking locations, the challenge is different: developers must demonstrate that sufficient local demand exists before adding substantial new housing supply.

Poland already had more than 16.16 million dwellings in its housing stock in 2025, with an average usable area of 75.7 sqm per dwelling.

The question for the next development cycle is therefore becoming less about the country’s overall housing shortage and more about whether the right type of housing exists in the places where population and employment are concentrating.

That distinction could become increasingly important as smaller households, migration and ageing change the composition of housing demand.

Regional differences will matter more to investors

Poland remains one of Central and Eastern Europe’s largest real estate investment and development markets, but national economic growth alone will become a less reliable guide to future property performance.

The strongest locations increasingly combine several advantages: employment creation, positive migration, transport infrastructure, universities, investment activity and the ability to attract skilled workers. Locations missing several of these elements may find it progressively harder to maintain the same pace of development.

This does not mean investment will be confined to Warsaw and the largest regional capitals. Smaller cities can still benefit substantially from new factories, logistics infrastructure, energy projects, tourism or major public investment. But such markets are likely to depend more heavily on identifiable local economic drivers.

For property investors, developers and occupiers, Poland is therefore becoming a more geographically selective market. The country’s economic expansion continues, but the opportunities created by that growth are not being distributed evenly.

The next phase of Poland’s real estate development is likely to follow the movement of people and employment increasingly closely. Where companies invest, skilled workers settle and infrastructure improves, property demand should follow, making regional and metropolitan fundamentals increasingly important to investment decisions.

Source: Statistics Poland

Schneider Electric appoints Martin Scholz to lead Secure Power in Czechia and Slovakia

Schneider Electric has appointed Martin Scholz as head of its Secure Power business for Czechia and Slovakia, with responsibility for developing the company’s activities in data centres, critical IT infrastructure and resilient power systems. Scholz took up the position on 1 August 2026.

The appointment comes as data-centre infrastructure and the systems required to maintain continuous IT operations become an increasingly important part of the technology and energy markets. In his new position, Scholz will oversee commercial development and relationships with customers and partners across the Czech and Slovak markets.

Scholz brings more than 20 years of experience in technology, sales and management. Before joining Schneider Electric, he held senior positions with HP, Hewlett Packard Enterprise and Amazon Web Services, with responsibilities covering business development, strategic management, sales and service delivery across Central and Eastern Europe.

His responsibilities at Schneider Electric will include developing the Secure Power division’s activities around data-centre and critical IT infrastructure, including power continuity, cooling and digital management systems.

“Martin brings more than 20 years of experience in business, technology and leading international teams,” said Darko Lopotar, General Manager of Schneider Electric for Czechia and Slovakia. He added that Scholz’s experience in business development and customer and partner relationships would support the further development of the Secure Power operation.

The appointment also places Scholz in a part of Schneider Electric’s business closely connected with the continuing expansion of digital infrastructure. Secure Power covers technologies used to maintain the availability and operation of data centres and other critical IT environments, where electricity supply, cooling and infrastructure management are central operational requirements.

Schneider Electric’s wider portfolio covers electrification, automation and digital technologies used across buildings, data centres, industrial facilities, infrastructure and electricity networks. The group employs more than 160,000 people and works with approximately one million partners in more than 100 countries.

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