In the office real estate sector, we could also call 2023 the year of construction. However, it had an impact on the vacancy rate. As for rental activity, it increased by 12% year-on-year in 2023.
"Almost 115,000 m2 of new office space was delivered to the Bratislava market within 5 projects. Most of them represent large-scale office buildings with a leasable area of over 20,000 m2, in the attractive business location of the CBD (Central Business District)."
The data regarding the vacancy rate are also very interesting. “In 2023, it recorded one of the sharpest increases in recent years, reaching up to 14.20% by the end of the year. This increase was primarily caused by the gradual relocation of companies from the outskirts of Bratislava to zones near the center, while the vacancy rate rose the most in the outskirts of Bratislava. At the same time, the increase in the vacancy rate can also be attributed to the fact that, with a record amount of new office space delivered in 2023, approximately 60% was pre-leased," adds Peter Slovák, senior research analyst at CBRE Slovakia.
The highest attainable rent for an office area of at least 500 m2 (prime rent) rose to €18/m2/month, which represents a year-on-year increase of 6%.
And that in terms of rent and vacancy rate. In 2023, the rental level within the industrial and logistics sector reached up to 818 thousand m2 of rented space.
"This is a year-on-year increase of 12%. Lease contract renegotiations were responsible for approximately one third of the total rental activity. The newly leased area (so-called take-up) rose to the level of more than 500 thousand m2. The vacancy rate reached a record low level and was 2.64% at the end of the year."
In 2023, a trend that had been observed for a long time was also clearly visible, the so-called "nearshoring", when the share of manufacturing companies increased significantly at the expense of logistics companies. "In 2023, manufacturing companies reached up to 54% of the total newly leased area, which represents the highest share in history. Just for the sake of interest, in 2020, when there was a high demand for logistics spaces, the share of manufacturing companies was only 14%," continues Peter Slovák. He added that in terms of newly leased space, CBRE sees a significant increase in leased space in central and eastern Slovakia. The share of these regions was a total of 9% in 2020, while in 2023 it was already 33%. The highest amount of rent reached the level of €5.75/m2/month, which is 17% more year-on-year.
The retail real estate sector, which suffered the most after the onset of the coronavirus, also prospered. Compared to the last year before the pandemic (2019), the sector is gradually recovering and returning to pre-pandemic numbers. According to CBRE's measurements, not only the turnover of shopping centers and retail parks increased again, but also their attendance, while the level of turnover has already surpassed 2019.
"In 2023, the successful Eurovea shopping center was expanded, namely by 25,000 m2 of new retail space. The opening of this shopping center brought with it several new brands, which opened their first ever operation in Slovakia. Their entry into the retail market in Bratislava creates the potential for their expansion into regional shopping centers as well."
CBRE also analyzed the amount of gross returns (prime yield) within individual sectors. According to the measurements, they reached their peak in a year-on-year comparison: office real estate (6.0%), industrial real estate (6.25%), shopping centers (6.50%) and retail parks (7.15%).
