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News Release

Bucharest, Budapest, Prague, Warsaw and Zagreb

Is the window of opportunity beginning to close for occupiers?

Jones Lang LaSalle issues CEE City Reports for Q2 2010

Bucharest, Budapest, Prague, Warsaw and Zagreb, 5th August 2010 - Jones Lang LaSalle presents the latest edition of its quarterly market reports - CEE City Reports Q2 2010. The CEE City Reports cover the main trends in the economy and demand and supply in the investment, office, retail, industrial, hotel and residential markets. The new edition highlights the continued stabilization and recovery of both the occupier and investment markets.

John Duckworth, Managing Director of Jones Lang LaSalle in CEE comments: “In Europe, disparities in the pace, trajectory and sustainability of economic recovery, have fuelled continuing uncertainty.  After marked upturns over the previous two quarters, take-up has now stabilised at levels which, for most markets, remain below the long-term average. In CEE there are signs on the horizon that the current occupier favourable market may begin to swing as supply pipelines become heavily curtailed as development finance has become prohibitive. Across the key asset classes in CEE there are signs of improved occupier demand in the office, retail and industrial sectors, whilst the residential and hotel markets remain somewhat stagnant. Overall there is an improvement in investor sentiment and activity in key markets, particularly in Poland and the Czech Republic”.

Kevin Turpin, Head of Research of Jones Lang LaSalle in CEE added: “Rental growth is forecast to return to a select number of CEE markets and in certain submarkets as we move into 2011, but it will be as a result of a lack of supply rather than notable upturns in demand.  While vacancy rates in many markets have been subjected to upward pressure, this has typically been due to disposals of second-hand space as occupiers have implemented consolidation and/or rationalisation programmes and exited their lower quality holdings”.