During H1 2017, Sharow Capital delivered an impressive display of office leasing activity and continued to enjoy high occupancy across its buildings in CEE.
Strong economic growth across the CEE region has underpinned high demand for office space and rental growth, and Polish regional cities inparticular have continued to benefit from outsourcing and the fast growing service sector.
Early in 2017, Airbus Helicopters expanded in Sharow Capital’s Forum 76 building in Lodz taking a further 290 sqm. Sharow Capital has continued to invest in Forum 76 and is currently refurbishing and upgrading the ground floor common areas, as well as creating a new reception area and a new 268 sqm office suite available to lease on the ground floor. This work will be completed by the end of October 2017.
Sharow Capital has also been very active securing and expanding tenants in their Opera Office in Gdansk. In the first part of this year KPMG, Lloyds Register, Reiffeisen Bank Polska and Metsa have all committed to staying.
In Slovakia, Sharow Capital has leased over 4,000sqm of office space in its newly constructed Uniq building in Bratislava and the asset is now over 50% leased. The firm continues to manage assets for Heitman, and has signed over 8,000sqm of new leases and renewals on behalf of Heitman in Slovakia this year.
The buoyant rate of CEE economic growth and the UK’s EU referendum decision are likely to result in a further strengthening in demand for CEE real estate. Those Western European companies who are hardest hit by Brexit are expected to move some functions to CEE and Poland stands to be the net beneficiary, with its lower cost skilled labour market and English language proficiency.