Reduced pipelines and lack of available financing is likely to result in lower office vacancy levels across Central & Eastern Europe (CEE), according to the latest research from global property adviser CBRE.
Reduced pipelines and lack of available financing is likely to result in lower office vacancy levels across Central & Eastern Europe (CEE), according to the latest research from global property adviser CBRE.
The office pipeline under construction has remained subdued across CEE and without significant pre-leases developers are struggling to secure financing. Warsaw is the exception to this trend, where several speculative projects have started during 2011.
Vacancy levels range from 6.7% in Warsaw up to 22% in Sofia and Belgrade. The most significant decline to vacancy during 2011 took place in Sofia (-350 basis points (bps)). Kiev (+410 bps) and Zagreb (+390 bps) are still trending the other way.
Jos Tromp, head of CEE research & consultancy, CBRE, commented: 'Despite declining vacancy across CEE, the general consensus is that most markets are still somewhat imbalanced. Warsaw’s office market seems to be rather solid, and despite a growing pipeline under construction, appears able to keep vacancy rather low. Solid demand and strong absorption are the backbone to this.'
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