Investment activity in Slovakia is focussing more on retail and industrial assets than offices at present, according to advisory firm Cushman & Wakefield. in Slovakia. Many office developers who control the better prime assets are unwilling to sell for the yield levels at which investors are prepared to buy and have sought other approaches to managing their leased developments, Andrew Thompson, Managing Partner C&W and responsible for Capital Markets in Slovakia said.
Investment activity in Slovakia is focussing more on retail and industrial assets than offices at present, according to advisory firm Cushman & Wakefield. in Slovakia. Many office developers who control the better prime assets are unwilling to sell for the yield levels at which investors are prepared to buy and have sought other approaches to managing their leased developments, Andrew Thompson, Managing Partner C&W and responsible for Capital Markets in Slovakia said.
'Investors though could be expected to review the yields they are prepared to pay in Slovakia for some commercial real estate over the next two years,' Thompson said.
Thompson said the situation in Slovakia was very similar to Czech Republic where investment volume this year is expected to halve from EUR 2 bn last year. However, yields in Slovakia tend to start somewhat higher than in Czech Republic at 7% for offices and retail, approaching 7.75-8% for the best regional retail investments.
'The limited supply of new projects in all sectors, driven by the debt crisis and lack of speculative development financing is helping reinforce the value of existing product. As an example, second-hand office buildings are securing an increasing share of the leasing market in 2012.’
