Garbe Industrial starts construction of logistics park in Soest

Garbe Industrial has commenced construction of a new logistics and light industrial development in Soest, North Rhine-Westphalia, with completion scheduled for the fourth quarter of 2026.

The project, known as Garbe Industrial Park Soest, will provide approximately 19,200 sqm of space for tenants from the production, industrial, logistics, e-commerce and commercial sectors. The development is being built on a 28,700 sqm site located near the A44 motorway, offering direct access to the Ruhr region and eastern Germany.

The property will comprise around 17,000 sqm of warehouse space, 1,700 sqm of mezzanine areas and approximately 500 sqm of office and social space. The facility will include 17 loading docks, two ground-level loading doors, parking for 40 cars and three truck spaces.

The site was previously occupied by a wholesaler of agricultural machinery spare parts. Existing buildings have been demolished to make way for the new development.

According to Garbe Industrial, the location benefits from strong transport connectivity and access to an established industrial base in the region.

“Soest’s location on the eastern edge of the Ruhr region, with excellent connections to the motorway network and a well-established economic structure with a diverse mix of industries, make it an important location in North Rhine-Westphalia,” said Frank Soppa, Regional Head West / Development at Garbe Industrial.

The company is targeting DGNB Gold certification for the project. Sustainability measures will include a rooftop photovoltaic system and heating provided by heat pumps, enabling fossil fuel-free operation.

The acquisition of the site was brokered by Leben+Raum Immobilien.

Headquartered in Hamburg, Garbe Industrial is active across Germany and Europe as a developer, investor and asset manager of logistics and light industrial real estate. As of the end of 2025, the company managed approximately 7.1 million sqm of lettable space and a development pipeline of around 1.8 million sqm, representing assets with a combined value of approximately €10.9 billion.

Sirowa Poland leases office space at Centrum Praskie Koneser in Warsaw

Sirowa Poland, an international distributor of cosmetics and pharmaceutical brands, has leased 958 sqm of office space in Building P at Centrum Praskie Koneser, the mixed-use redevelopment complex located in Warsaw’s Praga-Północ district.

The company selected the location following a review of office options across Warsaw, supported by Savills, which advised on market analysis, location selection and lease negotiations.

According to Sirowa Poland, the decision was influenced by the development’s post-industrial character, extensive amenities and convenient transport connections. The company said the new office will support its organisational culture while providing room for future growth.

“We were looking for a headquarters that would support our organisational culture and encourage team creativity,” said Anna Stupkiewicz-Ostrowska, General Manager of Sirowa Poland. “Centrum Praskie Koneser combines an industrial heritage with modern office standards and a wide range of services that enhance everyday working conditions. The selected space also supports our long-term development plans.”

Building P forms part of the wider Centrum Praskie Koneser complex, a mixed-use scheme developed on the site of the former Warsaw Vodka Factory. The project combines office, retail, hospitality, cultural and entertainment functions within a restored industrial setting.

Existing office occupiers at Koneser include Campus Google for Startups, PepsiCo and WPP.

Ilona Koski-Lammi, Deputy Sales Director at Liebrecht & wooD Poland, said the transaction reflects the continued growth of Praga-Północ as a business destination.

“The choice of Centrum Praskie Koneser by Sirowa Poland confirms the vision behind the project from the outset. We have consistently developed Koneser as a multifunctional urban destination where office, cultural, retail and hospitality functions coexist. The growing popularity of the complex demonstrates the strengthening position of Warsaw’s right-bank districts as important business locations,” she said.

Opened in 2018, Centrum Praskie Koneser comprises nearly 75,000 sqm of office, retail, service, cultural, entertainment, hospitality and hotel space. The complex is jointly owned by Liebrecht & wooD and BBI Development and is managed by Liebrecht & wooD.

DIW Berlin cuts German growth forecast as energy price shock weighs on economy

Germany’s economic recovery has lost momentum following a sharp rise in energy prices triggered by the conflict involving Iran, prompting the German Institute for Economic Research (DIW Berlin) to significantly lower its growth outlook for the country.

In its Summer Economic Forecast 2026, DIW Berlin reduced its projection for German GDP growth this year to 0.5%, down by around half a percentage point from its spring forecast. Growth is expected to reach 0.8% in 2027.

According to the institute, higher oil and gas prices are driving inflation, reducing household purchasing power and increasing economic uncertainty. As a result, Germany is expected to experience slight contractions in both the second and third quarters of 2026, meeting the technical definition of a recession before stabilising towards the end of the year.

“The energy price shock is noticeably slowing the recovery, but we are not experiencing a repeat of 2022 or 2023,” said Geraldine Dany-Knedlik, Head of Forecasting at DIW Berlin. “The shock is smaller, energy supplies remain secure, and Germany is less dependent on fossil fuel imports than it was after the outbreak of the war in Ukraine.”

DIW forecasts inflation of 2.9% in 2026 and 3.0% in 2027, remaining above the European Central Bank’s target. The unemployment rate is expected to rise slightly from 6.3% in 2025 to 6.4% this year before easing to 6.2% in 2027.

The institute expects government spending to remain the primary driver of economic growth. Increased defence expenditure and investment from Germany’s infrastructure and climate transition funds are projected to support activity over the forecast period. However, private consumption is expected to recover only gradually, while export-oriented industries continue to face structural challenges and external uncertainties.

DIW estimates that the fiscal stimulus will push Germany’s public sector deficit to 3.9% of GDP in 2026 and 4.3% in 2027.

Beyond the immediate impact of higher energy prices, the institute highlights longer-term challenges including declining industrial competitiveness, elevated production costs and demographic pressures, all of which continue to weigh on Germany’s growth potential.

DIW President Marcel Fratzscher urged policymakers to focus on targeted support measures for low-income households rather than broad fuel subsidies.

“An energy cost allowance similar to the scheme introduced in 2022 would be the right instrument,” Fratzscher said. “The fuel discount is expensive, poorly targeted and also benefits oil companies. The government should not repeat that mistake.”

Despite the weaker outlook, DIW noted that structural reforms and accelerated public investment could improve business confidence and stimulate private-sector investment.

Global growth outlook remains resilient

The institute also revised down its global growth forecast, citing the impact of higher energy prices on inflation and consumer spending. Nevertheless, the world economy is expected to continue expanding at a moderate pace.

Global GDP growth is forecast at 3.1% in 2026 and 3.3% in 2027, representing a reduction of 0.2 percentage points compared with DIW’s spring forecast.

The United States is expected to maintain growth rates above 2%, supported by its position as a major energy producer. The eurozone, however, is projected to grow by only 0.3% this year, reflecting its continued reliance on energy imports and exposure to price shocks.

China is expected to continue expanding at a moderate pace despite challenges in its property sector, supported by exports and investment in future technologies.

According to DIW, risks to the outlook remain tilted to the downside, including a potential escalation of geopolitical tensions, persistently high energy and food prices, tighter monetary policy in response to inflationary pressures and labour market disruptions associated with the growing adoption of artificial intelligence.

Source: DIW Berlin

GXO leases entire 7R Park Lavičky in Czech market debut for 7R

7R has signed its first leasing transaction in the Czech Republic, securing a long-term agreement with GXO Logistics for the entire 7R Park Lavičky development. The contract covers approximately 26,000 sqm of warehouse space in a logistics park being developed through a joint venture between 7R and Czech investment fund WOOD & Company.

Located alongside the D1 motorway connecting Prague and Brno, the facility will serve as a dedicated logistics centre for L’Oréal. GXO’s Czech operations will provide third-party logistics (3PL) services supporting the cosmetics group’s European supply chain.

The transaction marks a significant milestone for 7R’s expansion into the Czech market and represents the full pre-leasing of the project ahead of completion.

7R Park Lavičky is being developed as a build-to-suit facility tailored to GXO’s operational requirements. The warehouse will incorporate a range of energy-efficient solutions, including LED lighting with intelligent controls and a rooftop photovoltaic installation aimed at reducing both carbon emissions and operating costs.

Given the nature of GXO’s operations for L’Oréal, the development will also include a dedicated area for the storage of hazardous materials equipped with specialised fire protection and safety systems.

Infrastructure improvements form part of the wider development. 7R has designed a new roundabout to improve access to the site and increase traffic safety in the area. A new public bus stop will also be delivered as part of the project.

The developer intends to achieve a BREEAM Excellent certification for the facility.

“Signing the lease with GXO is a very important step in the development of our business in the Czech market and confirms the effectiveness of our long-term strategy in the region,” said Jiří Duchoň, Head of 7R Czechia. “Securing such a renowned global partner is the result of the work carried out by our Czech team over the past two years, from building local expertise to delivering a high-quality logistics product.”

The project benefits from a strategic location approximately 50 km from Brno and 135 km from Prague, providing direct access to the Czech Republic’s main transport corridor. The site also offers access to labour markets around Jihlava and Velké Meziříčí.

According to 7R, demand for logistics space in the Czech Republic remains strong. The company cited market data showing that the country’s modern warehouse stock reached approximately 13.3 million sqm at the end of 2025, while net take-up totalled 1.2 million sqm, representing year-on-year growth of nearly 36%.

“The transaction with GXO confirms that, thanks to the quality of our projects, a flexible approach to occupier requirements and the excellent location of the development, we are able to compete effectively with long-established market participants,” said Štefan Bohoš, Leasing Manager at 7R Czechia.

Jan Jandík, Investment Manager at WOOD & Company, added that the lease agreement demonstrates continued demand for modern logistics assets in prime Czech locations.

Construction is progressing according to schedule, with completion and handover of 7R Park Lavičky planned for the first quarter of 2027.

Catella sees growing divide across Europe’s office markets as supply constraints drive rental growth

Europe’s office sector is entering a period of increasing divergence, with modern office buildings in central business districts expected to outperform ageing secondary stock as limited supply and rental growth support value recovery, according to Catella’s latest Office Outlook report.

The research highlights a widening gap between prime assets in core locations and older buildings facing rising obsolescence risks. While uncertainty remains around hybrid working patterns and the long-term impact of artificial intelligence on office demand, Catella argues that the sector continues to offer investment opportunities for investors focused on asset quality and location.

According to the report, constrained development pipelines, elevated construction costs and financing challenges are limiting the delivery of new office space across Europe. At the same time, increasingly complex refurbishment requirements are reducing the ability of older buildings to compete with modern stock.

As a result, the supply of high-quality office space in many central business districts is becoming increasingly scarce, supporting occupancy levels and rental growth. Catella notes that prime office rents across Europe have increased by an average of 6.5% annually since hybrid working became widespread in 2020.

“The office market is no longer moving as one asset class. We are seeing a structural divergence between assets that can deliver durable income growth and those facing growing obsolescence risk,” said Petra Blazkova, Head of Group Research and Strategy at Catella Group.

Catella argues that this divergence has created pricing inefficiencies across the market. While modern CBD offices generally benefit from stronger fundamentals, they have experienced value declines similar to those of secondary assets in recent years, creating potential opportunities for investors seeking exposure to prime locations.

The report suggests that as market conditions stabilise, prime office assets in central locations could benefit from improving values and stronger liquidity, while secondary offices continue to face pressure from weaker tenant demand, higher vacancy rates and increasing capital expenditure requirements.

“Investors should focus less on the question of whether to invest in offices and more on which offices to invest in,” said Daniel Gorosch, Head of Corporate Finance Europe at Catella Group. “Success will depend on identifying assets that can benefit from supply constraints, occupier demand and active asset management.”

The report also points to improving investment activity across the sector. Office transaction volumes increased by 19.5% over the past 12 months, reflecting a gradual return of investor confidence. Activity has been particularly concentrated in central business districts, where liquidity remains strongest and pricing has become more transparent.

According to Catella, the combination of constrained supply, rental growth and improving transaction activity is creating selective opportunities for investors, particularly within value-add and refurbishment strategies focused on prime urban locations.

Central Parx reaches construction milestone with topping-out ceremony in Frankfurt

ABG Real Estate Group and HanseMerkur Grundvermögen have celebrated the topping-out ceremony for Central Parx, their major office redevelopment project in Frankfurt’s banking district, marking just over a year since construction began.

Around 300 guests from politics, business and civic society attended the event on Bockenheimer Landstrasse, including Frankfurt Lord Mayor Mike Josef, ABG Real Estate Group Managing Partner Ulrich Höller, and HanseMerkur Grundvermögen board members Malte Andes and Ulrich Haeselbarth.

The project involves the transformation of a listed office complex into a modern workplace destination with approximately 25,650 sqm of lettable office space. The redevelopment represents a total investment of around €370 million and is already almost fully leased. Confirmed tenants include international law firms White & Case and Noerr.

Originally designed by renowned architect Sep Ruf and completed in 1965, the complex comprises the Tower, Studio and Pavilion buildings. The property served as the headquarters of BHF Bank for more than 50 years before being acquired by ABG Real Estate Group and HanseMerkur Grundvermögen in 2020.

The refurbishment is being carried out in collaboration with Frankfurt-based architect Prof. Christoph Mäckler and aims to bring the building to modern standards while preserving its architectural heritage. The redevelopment includes a comprehensive upgrade of building systems, improved internal connectivity, redesigned floorplates and stronger integration with the neighbouring Rothschild Park.

The project is targeting DGNB Platinum and WiredScore Platinum certifications, reflecting its focus on sustainability, digital infrastructure and energy efficiency. The existing façade structure will be retained while being upgraded to meet contemporary environmental standards.

“Central Parx exemplifies how architecturally significant existing buildings can be developed in a sustainable manner,” said Frankfurt Lord Mayor Mike Josef. “Its redesign not only strengthens the banking district but also enhances Frankfurt’s appeal as a business and employment hub.”

Ulrich Höller, Managing Partner of ABG Real Estate Group, described the project as an example of the growing importance of repositioning existing assets. “With great respect for the original architecture, we are developing a workplace that combines identity, quality and sustainability,” he said.

Malte Andes, Deputy Chairman of the Board of HanseMerkur Grundvermögen, said the high level of pre-leasing demonstrates continued demand for premium office space in prime city-centre locations.

Construction is being carried out by Adolf Lupp GmbH + Co. KG in a joint venture with Medicke GmbH. The project combines high-rise modernisation with heritage conservation requirements, creating additional complexity in both planning and execution.

Completion of Central Parx is scheduled for mid-2028.

Copyright: ABG Real Estate Group From left to right: Ulrich Haeselbarth, Member of the Executive Board, HanseMerkur Grundvermögen; Ulrich Höller, Managing Partner, ABG Real Estate Group; Prof. Christoph Mäckler, architect; Mike Josef, Lord Mayor of Frankfurt; Malte Andes, Deputy Chairman of the Board, HanseMerkur Grundvermögen; Guido Wiese, Spokesman for the Management Board, Development, ABG Real Estate Group

Skanska sells Gothenburg rental housing project for SEK 500 million

Skanska has agreed to sell a self-developed rental housing project in Gothenburg, Sweden, to the Folksam Group through KPA Pension for approximately SEK 500 million.

The transaction will be recognised by Skanska Commercial Development in the second quarter of 2026. The buyer will take possession of the property upon completion of the project, which is scheduled for the second quarter of 2029.

The development is located in the Sankt Jörgens Park area on Hisingen, Gothenburg, and will comprise 142 rental apartments with a total leasable area of just over 10,100 sqm. The residential scheme will consist of buildings ranging from six to ten storeys in height, with underground parking facilities.

According to Skanska, the apartments are being designed with a focus on functionality and quality of living, while residents will have access to nearby services and recreational amenities.

Beauty and wellness operator to open at Frankfurt’s THE SQUAIRE

A new beauty, wellness and lifestyle concept is set to open at THE SQUAIRE, the mixed-use complex connected to Frankfurt Airport, following a lease agreement between asset manager Sonar Real Estate GmbH, property manager Fraport AG and Rubin Beauty and Hair Studio Airport.

The new operator will offer a range of services including hairdressing, colouring, hair extensions, keratin treatments, skincare and cosmetic treatments, massages, manicures and pedicures. The concept will also feature a lounge and bar area, targeting travellers, airport employees, hotel guests and office workers based in the building.

The opening is scheduled for 15 June following the completion of refurbishment and fit-out works.

According to Fraport AG, the addition forms part of ongoing efforts to strengthen the service offering and tenant mix at THE SQUAIRE.

“Our aim is to tailor the tenant mix at THE SQUAIRE specifically to the needs of those who use the building. With this latest letting, we have brought in a range of services that sit well alongside what is already here and add further appeal to the location,” said Vera Steinmüller, Property Management Manager for THE SQUAIRE at Fraport AG.

Jana Rubin, Managing Director of Rubin Beauty, said the company aims to combine beauty, haircare, wellness and hospitality services in a single location. She added that tenants of THE SQUAIRE, hotel guests and airport employees will receive a 15% discount on services.

Located directly above Frankfurt Airport’s long-distance ICE railway station and connected to Terminal 1 via a pedestrian walkway, THE SQUAIRE combines office, retail, hospitality and service functions within a single complex. The building stretches 660 metres in length and houses tenants including Atos, Hilton Hotels, Michelin, Regus, Porsche Consulting and Haferkater.

Sonar Real Estate manages approximately €3 billion of assets and operates from offices in Hamburg, Berlin, Düsseldorf, Frankfurt and Munich. Fraport AG, which manages Frankfurt Airport and interests in 29 airports worldwide, reported revenue of €4.2 billion and net profit of €468.1 million in 2025. Frankfurt Airport handled approximately 63.2 million passengers and 2.1 million tonnes of cargo during the year.

Hungary closes guest worker permit route to new applicants

Hungary has effectively closed its guest worker residence permit scheme to new applicants following the entry into force of Government Decree No. 92/2026 (VI. 5.) on 6 June 2026.

The amendment to Government Decree No. 450/2024 (XII. 23.) removes the possibility of obtaining new guest worker residence permits by eliminating all currently eligible source countries from the programme. At the same time, the government withdrew the Ministry of Foreign Affairs and Trade (KKM) notice that had previously allowed citizens of the Philippines to be employed under the guest worker permit framework.

The move forms part of the Hungarian government’s broader effort to reduce reliance on foreign labour and prioritise the employment of Hungarian workers.

While the guest worker route has been closed to new applicants, the regulation does not prohibit the employment of third-country nationals in Hungary. Other employment-related residence permit categories remain available under existing legislation, allowing eligible foreign nationals to continue applying for work and residence authorisations through alternative channels.

Existing applications remain valid

The new rules do not affect applications for guest worker residence permits that were submitted and paid for before 6 June 2026. These applications will continue to be processed under the previous legal framework.

This transitional provision provides certainty for employers and employees who had already initiated the permit process before the regulation entered into force.

Extensions still permitted

Foreign nationals holding valid guest worker residence permits issued before 6 June 2026 retain the right to apply for extensions or reissuance of their permits in accordance with the previous regulations.

As a result, businesses currently employing workers under the guest worker scheme can continue to rely on those employees, provided permit renewals are submitted within the required deadlines.

Other employment permits unaffected

The amendment applies specifically to the guest worker residence permit category and does not alter the requirements for other residence permits issued for employment purposes.

Third-country nationals who qualify for alternative work-related residence permits remain eligible to work in Hungary under the applicable immigration rules.

Further changes expected

The latest amendment follows Government Decision No. 1153/2026 (V. 18.), which ordered a comprehensive review of legislation governing the employment of third-country nationals in Hungary.

The review signals that additional changes to Hungary’s immigration and employment framework may be introduced in the coming months as the government reassesses the role of foreign labour in the domestic economy.

For employers, the immediate impact is the closure of the guest worker permit route for new applicants. Companies relying on foreign labour will need to review recruitment strategies, monitor permit expiration dates for existing employees and stay alert to further legislative developments that could affect workforce planning.

Source: CMS

Prague Office Market Faces Supply Constraints as Companies Prioritise Lease Renewals

The Prague office market is experiencing increasing pressure from a shortage of modern office space, with many occupiers choosing to extend existing leases rather than relocate, according to Savills.

The property consultancy reports that only three of the twenty largest office transactions completed during 2024 and 2025 involved companies moving to new premises. The remaining transactions were predominantly lease renewals, reflecting limited availability in Prague’s prime office market.

According to Savills, the trend is linked to historically low levels of new office development. In 2025, just 26,600 sqm of office space was completed in Prague, representing the lowest annual delivery volume recorded in the market. A modest increase to approximately 36,700 sqm is expected in 2026, but this remains significantly below the 150,000–200,000 sqm of annual completions typically delivered during previous development cycles.

As new supply remains limited, vacancy rates in Prague’s key office districts have fallen below 5%, restricting options for companies seeking high-quality space.

Savills notes that relocation decisions are increasingly influenced by the costs associated with moving and fitting out new offices. While rental levels remain an important consideration, the investment required to relocate often encourages occupiers to commit to longer lease terms, typically ranging from eight to ten years. This can make relocation decisions more complex, particularly as companies face changing business requirements and evolving workplace strategies.

The market currently has 16 office projects under construction, representing approximately 312,900 sqm of space. However, a substantial portion of this pipeline will not be available to the wider leasing market. Six projects, accounting for around 54% of the total construction pipeline by floor area, are being developed for owner occupation.

Notable examples include the future headquarters of ČEZ, Erste Group and Creditas Group.

After excluding owner-occupied developments, approximately 108,800 sqm of office space remains available within projects currently under construction. Most of this supply is not expected to be delivered until 2028.

The shortage of modern office space is also contributing to rental growth. Prime office developments in central Prague are now targeting rents above €33 per sqm per month, while negotiations in selected projects are reportedly taking place at levels exceeding €35 per sqm per month.

Savills attributes this trend to a combination of rising construction and development costs and the limited availability of high-quality office buildings.

At the same time, the consultancy highlights a growing challenge within Prague’s existing office stock. More than 30% of the city’s office buildings are now over 20 years old, while refurbishment activity remains limited. Savills identified only seven major refurbishment projects currently planned, compared with 43 new development projects.

This creates increasing pressure on older properties, many of which face higher operating costs, lower energy efficiency and the need for future capital investment to remain competitive.

According to Savills, maintaining Prague’s attractiveness as a business location will require a combination of faster permitting procedures, renewed development activity and greater investment in the modernisation of existing office buildings.

Without additional supply entering the market and a broader programme of refurbishment, Prague’s office sector is likely to face continued upward pressure on rents and increasing competition for high-quality space in the coming years.

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