The current situation in the field of investment in commercial real estate shows that this segment is extremely resistant. "The total volume of investments in Slovakia increased by 48% year-on-year. We assume that in 2022 we will exceed the volume of 1 billion euros invested in Slovak commercial real estate. In terms of sectors, we record an increase in 2021 primarily in logistics and retail real estate, but other segments are also doing well, and demand for office real estate should also increase this year, ”describes Ľubor Procházka, Commercial Director of CBRE Slovakia.
Office real estate
Last year was also a record for the Slovak office market and the total volume of leases climbed to almost 240,000 m2. "The largest transaction on the Slovak office market in history took place, namely the pre-lease of premises in the Nové Apollo building for IBM Slovakia. Rising demand for office space is also confirmed by the low rate of renegotiated cities, which represents only 32%, while the average for the last 5 years is 42%. The vacancy rate at the end of 2021 was at 11.7%, but in 2022 we expect a further decline. The highest achievable rent remains stable at € 17 per m², ”describes Oliver Galata, CBRE Slovakia's director of office rental.
Commercial premises and retail parks
The retail real estate segment is also reporting positive news. It was, within the capital markets in 2021, the most dominant, which was affected by the largest transaction on our market - the sale of Bratislava's Aupark for 450 million euros. Apart from this transaction, 14% more was invested in retail year-on-year. "In the third quarter, the construction of the largest shopping center in Slovakia - Nivy Station - was completed with a total leasable area of 70,000 m2. In addition to projects in Bratislava, we also record the expansion of the Eperia shopping center in Prešov, which currently offers more than 30,000 m2 of shopping space. There are two large projects under construction, namely Eurovea II and Promenáda Nitra. In 2022, we expect the turnover and attendance of shopping centers to reach a pre-pandemic level, as the summer months of 2021 showed high performance in these indicators and surpassed those of 2019, "describes Tomáš Lörincz, CBRE Slovakia's director of retail space.
Industrial and logistics real estate
According to CBRE, the volume of investments in logistics real estate will remain high in 2022, and thanks to growing demand from tenants, they will continue to be preferred by investors. The volume invested in logistics real estate in Slovakia has been growing continuously since 2018, while the average year-on-year increase over the last three years is 20%. "In terms of leased land, 3PL tenants (third-party logistics) were the most dominant, accounting for up to 45%, and the automotive sector accounted for 20%. Last year, another almost 200,000 m2 of A-standard premises were built across the whole of Slovakia, and at the end of the year, approximately 400,000 m2 of new premises were under construction. This year, we expect increased interest from companies in the Internet sales sector, "explains Michal Cerulík, CBRE Slovakia's Director of Industrial and Logistics Leasing.