Stoneweg European Reit (Sert) recently announced the renewal of two significant leases for office spaces in Rotterdam and Krakow, totaling approximately 27,000 square meters. These leases involve major tenants such as Motorola Solutions and Coolblue BV.
Motorola Solutions, a global leader in public safety and enterprise security, has committed to extending its lease at the Green Office in Krakow, Poland, for an additional five years, effective from August 2027. This space, spanning 17,761 square meters, serves as the hub for Motorola’s research and development efforts in artificial intelligence and telecommunications, in addition to housing its data center facility. Motorola has been a tenant at this location since 2011, and Sert acquired the Green Office in July 2019.
On the other hand, Coolblue BV, a leading Dutch e-commerce company, has signed a new lease at Central Plaza in Rotterdam, the Netherlands, for over five years, beginning in July 2025. Coolblue has operated from this site since 2012, sharing the space with other notable tenants like KPMG and Holland Casino. The location is particularly attractive due to its relatively lower rental rates compared to Amsterdam, making it appealing not only to startups but also to larger multinational companies. However, the Reit’s manager noted a significant rise in rental prices in Rotterdam, which increased by 34% since 2022.
In Krakow, the office rental market remains more affordable than in Poland’s capital city, Warsaw, as well as some Western European cities. The city’s competitive rental rates have contributed to its growing appeal among multinational corporations, especially those in the information technology and business services sectors.
These lease renewals will result in an almost six-month extension of the weighted average lease expiry across Sert’s office portfolio, increasing it to 5.3 years. The portfolio's occupancy rate has remained stable at approximately 90% over the past two years, with an impressive 85% retention rate in 2024.
Together, the two leases have a combined annual rental value of approximately 5.5 million euros (S$8.2 million), aligning with their previous rental levels. The leases were finalized at market rates. Despite this, independent assessments suggest that the office portfolio is still under-rented by about 9%, hinting at the potential for future rental growth.
The Reit’s manager emphasized that tenant-customers are increasingly selective about their office spaces, prioritizing quality and prime locations as post-pandemic work arrangements solidify. Looking ahead, Sert plans to continue enhancing its office assets, focusing on sustainable upgrades and collaborating with tenants to meet their employee engagement and sustainability goals.