The European office market has been facing a situation of "oversupply" in recent years and is currently affected by another reason, the COVID pandemic. A year later and while the world is still experiencing uncertainty, the outlook looks is bleak, as all countries around the world have started vaccinations against Covid-19.
However, does that mean there is a light at the end of the tunnel for the office market?
Commenting on the developments in the Greek market, Ms. Niki Sympoura,
head of Cushman & Wakefield Proprius in Greece, recently stated that
Greek office spaces are included in the most resilient markets in
Europe for the "difficult" 2020, since rents and yields maintained the
same levels as in 2019, mainly for modern office buildings.
However, as she points out, the situation is not the same in less
central locations and older properties in secondary locations where
yields have risen and rents have been squeezed. "The lack of quality
real estate in the Greek market and the maintenance of strong interest
in investing in real estate, supported part of the commercial real
estate market so that it records a satisfactory course in 2020," said
Ms. Sympura.
This lack of quality real estate has been where domestic REICs have been
focused since before the pandemic - and where they still do.
According to Prodea, the office sector still is the main pillar of
growth, a sector that in fact covers 45% of its portfolio. The listed
company continues investing in office building under construction in
Maroussi, on Frangokklisias Street, along with the existing projects in
collaboration with Dimand (upgrade of the Piraeus Tower, the office
building on Syggrou Avenue, etc.). The development of quality spaces is a
priority, with simultaneous sale of older properties, such as those
taken by the company of businessman G. Papalekas for € 134 million.
The company has recently submitted a bid for the kodak property in
Maroussi in the tender of Ektasis Development, which was instead won by
Noval, with the aim of developing office spaces, , as everything shows.
The real estate company of the Biochalco group, along with Brook Lane,
submitted the highest bid of € 28.6 million for the property of 20,000
square meters that will be "transformed" into high-standard office
space, with "green" certification. The company already has in its
portfolio two "green" buildings, "The Orbit" (in Ampelokipi) and "The
Butterfly" (in Chalandri).
Interest is also concentrated around the development of office towers in
Hellinikon. The deadline for the submition of non-binding bids for the
partnership with Lamda Development, for the construction of residential
and office towers, expired on Friday. The tender process implemented
with Deloitte and Savills as consultants, is now entering the
evaluation phase of the proposals, in order to compile the short list of
those who will enter the phase of submitting binding offers.
According to information, Prodea, Olirina, Grivalia, Hines and Brooklane where all "present" in the tender concerning the submission of non-binding interest for the two towers in Hellinikon.
