The supply of new space in the office and warehouse market should increase in 2020. A drop in supply can be expected in the commercial real estate market, according to experts from Knight Frank. In their view, demand and rents in all three sectors should remain stable.
“The office sector is very dynamic and we expect to continue what we have seen throughout the past year,” Daniel Puchalski, managing partner of Knight Frank, said.
The Knight Frank report shows that the volume of transactions on the office market in 2019 amounted to €3.8 billion, which means a 37% increase y/y.
In the warehouse segment, Knight Frank also expects an increase in supply in 2020. According to the report, demand and rents should be stable.
Experts indicate that the demand for transshipment platforms within the administrative boundaries of cities is growing due to the development of the so-called last-mile logistics.
“In the coming years, this will result in an increase in demand for land intended for logistics within cities,” the report said.
In turn, the retail sector will face a decline in supply, the Knight Frank team expects. According to Daniel Puchalski, the shopping centers are aging, trade is changing, and e-commerce is growing at a rapid pace, including affects the development of the warehouse market.
(PAP)
