Ladies and Gentlemen!

I am pleased to provide you with the next issue of CPRF Newsletter. Newsletters CPRF hitherto concerned aspects of real estate valuation and real estate market analysis. The current edition has been subordinated to the area associated with the Financing and Investment Market of Commercial Property in Poland. I encourage you to review the various blocks of the Newsletter. I hope that it will meet with your interest. 


Yours sincerely,
Roman Fortuna MRICS

Global financial crisis began in the third quarter of 2008 had an impact in terms of financing on Polish commercial properties market. Nowadays, due to the difficulties in raising money in the interbank market, and while awaiting the financial results for the IV quarter of 2008 some financial institutions have announced that their credit activity will be unfrozen after the second quarter of 2009 in the earliest. Other financial institutions significantly exacerbated lending criteria. The question arises what changes this limited credit activity will bring on the commercial property market. Do investors/developers have the chance to secure financing for their developments from banks, now? What terms of financing are required by the banks?

2008 compared to 2007 was characterized by a significant slowdown in the commercial properties investment market. The main reason for a lower volume of transactions was a limited number of quality investment properties sale offers as well as difficulties in securing financing, which in turn was the result of a turbulence at financial markets in Europe and USA. It is worth mentioning that in November 2008.

The chances of the emergence of hyperinflation in the U.S., that is, the monthly increase in prices by over 50%, appear to be relatively low, although the chances are pretty big on the price increase by about 10% -20% per year, such as in the seventies during the oil crisis. U.S. credit crunch adversely affected the economy of the European Union and will contribute to lower level of growth of Polish economy. Given the delay in the start of infrastructure investments by Poland, it is likely that the increase in Gross Domestic Product (GDP) in 2009 may amount to little more than 0%. What are the arguments for such a scenario?

Companies planning to lease office space, while selecting the most advantageous market offer, tend to concentrate mainly on financial lease terms proposed by developer, building location and its standard. Although, the key element in an office space lease process is a lease agreement – a document which legally regulates relations between a landlord and a tenant. It is essential to focus on many details of the agreement to avoid doubts in a future.