Players positioning for a piece of the action
In Warsaw, however, many agents say that tenants and owners are only now beginning to recognize the need for agents to help them with their property needs.
"It's an emerging market," said Jeremy Cracknell of Henry Butcher. "The structure's simply not there, and many people don't realize the need for the services offered by agents."
When it comes to leasing and selling space, real estate agencies can work for the owner - looking for quality tenants to take up the space offered - or for tenants - looking for space which best fulfills their requirements in terms of size, location, quality, efficiency and price.
Cracknell said that when the market was smaller, it was easier for tenants and owners to go it alone.
"We still come across tenants who are doing all the looking themselves," said Cracknell. "They've done all their own research on rent levels, add-ons, hidden costs and extras, at all the buildings in town."
Developers also felt that, given the growing number of companies setting up or expanding their operations, anything they built would be automatically taken up. But now that more development is taking place, sites are diversifying and many developers and owners are beginning to realize the need for professional marketing to target clients.
For example, Austrian contractor Ilbau has chosen Healey & Baker to lease their latest project, the Ilmet at Rondo ONZ. Ilbau has built the IPC building on ul. Koszykowa and the Aktyn building on ul. Chmielna. Although the company worked with and paid agents who brought in tenants, it tried to handle the leasing itself.
Another project currently under construction, the Ochota Office Park, also chose Healey & Baker as exclusive agents, giving them a total 68,500 square meters of total floor area to lease. Other agents, among them Jones Lang Wootton, Henry Butcher and Prime Property, have been awarded exclusive agency contracts as well.
While many agents, particularly domestic ones, still base their business chiefly on brokerage, most international consultancies treat the tenant/agent and agent/developer relationships as more long-term, involving a wide range of services in many fields. Of the ten respondents to WBJ's survey, almost all listed other services including valuation, property management, site acquisition and feasibility studies.
Although consultancy is growing, it remains below the levels found in other regional capitals.
Karolina Kaim of JLW said that approximately 80% of the company's business in Prague comes from leasing and selling space, and in Budapest it is approximately 40-50%. In Warsaw, however, it covers only a small percentage.
Kaim said that these services are very important, especially when working with developers. "You have to get to know the developer at the early stage so that you can get involved at the end." One example is the Europlex complex, where JLW started out with a feasibility study and recently was appointed leasing agent.
Other agents, like Gerald Eve, have developed a good business in the area of site acquisitions. Unikat, while not working as often with the more prominent new-building projects, has built quite a reputation dealing in space in Warsaw's older office stock, especially at refurbished buildings previously occupied by state-owned companies.
Overall, the market is becoming more crowded with professional real estate companies, a sign that market watchers see big potential for the country's property markets.
The biggest players in Central and Eastern Europe - Jones Lang Wootton, Healey & Baker, DTZ, and Colliers - all opened up new offices or made deals with already established offices within the last year.
Most agents agree that, with the increased number of players now vying for market share, this year will be key for each company to carve out their place in the market.
The winner, they say, will not be based on company name alone, but on their ability to get things done.
"It's an emerging market," said Jeremy Cracknell of Henry Butcher. "The structure's simply not there, and many people don't realize the need for the services offered by agents."
When it comes to leasing and selling space, real estate agencies can work for the owner - looking for quality tenants to take up the space offered - or for tenants - looking for space which best fulfills their requirements in terms of size, location, quality, efficiency and price.
Cracknell said that when the market was smaller, it was easier for tenants and owners to go it alone.
"We still come across tenants who are doing all the looking themselves," said Cracknell. "They've done all their own research on rent levels, add-ons, hidden costs and extras, at all the buildings in town."
Developers also felt that, given the growing number of companies setting up or expanding their operations, anything they built would be automatically taken up. But now that more development is taking place, sites are diversifying and many developers and owners are beginning to realize the need for professional marketing to target clients.
For example, Austrian contractor Ilbau has chosen Healey & Baker to lease their latest project, the Ilmet at Rondo ONZ. Ilbau has built the IPC building on ul. Koszykowa and the Aktyn building on ul. Chmielna. Although the company worked with and paid agents who brought in tenants, it tried to handle the leasing itself.
Another project currently under construction, the Ochota Office Park, also chose Healey & Baker as exclusive agents, giving them a total 68,500 square meters of total floor area to lease. Other agents, among them Jones Lang Wootton, Henry Butcher and Prime Property, have been awarded exclusive agency contracts as well.
While many agents, particularly domestic ones, still base their business chiefly on brokerage, most international consultancies treat the tenant/agent and agent/developer relationships as more long-term, involving a wide range of services in many fields. Of the ten respondents to WBJ's survey, almost all listed other services including valuation, property management, site acquisition and feasibility studies.
Although consultancy is growing, it remains below the levels found in other regional capitals.
Karolina Kaim of JLW said that approximately 80% of the company's business in Prague comes from leasing and selling space, and in Budapest it is approximately 40-50%. In Warsaw, however, it covers only a small percentage.
Kaim said that these services are very important, especially when working with developers. "You have to get to know the developer at the early stage so that you can get involved at the end." One example is the Europlex complex, where JLW started out with a feasibility study and recently was appointed leasing agent.
Other agents, like Gerald Eve, have developed a good business in the area of site acquisitions. Unikat, while not working as often with the more prominent new-building projects, has built quite a reputation dealing in space in Warsaw's older office stock, especially at refurbished buildings previously occupied by state-owned companies.
Overall, the market is becoming more crowded with professional real estate companies, a sign that market watchers see big potential for the country's property markets.
The biggest players in Central and Eastern Europe - Jones Lang Wootton, Healey & Baker, DTZ, and Colliers - all opened up new offices or made deals with already established offices within the last year.
Most agents agree that, with the increased number of players now vying for market share, this year will be key for each company to carve out their place in the market.
The winner, they say, will not be based on company name alone, but on their ability to get things done.
