Back when things were allegedly "great", the United States navy ruled the seas, providing the security needed for free, globalized trade. At the same time, the dollar dominated world trade thanks to its use to facilitate sales of oil, and thanks to the faith the world had in US treasury bonds as a safe, liquid asset.
But let’s face it, nothing stays the same and as time passed, the US began to use its implicit power over global financial markets explicitly. More specifically, it converted its soft power into the cold, hard steel of sanctions. Weirdly, the more powerful you are, the less you have to actually deploy that power.
Sure, the dollar continues to dominates world trade and finance. But governments are actively looking for ways to create their own, independent economic universes. Central banks around the world have been reducing their holdings of US treasuries, helping to push 30-year treasuries above 5% for the first time since 2007.
It's no coincidence that this gradual slippage of dominance has come at the same time as China’s meteoric rise. These days, the US navy can't even secure the Strait of Hormuz, let alone guarantee that the South China Sea will always stay open. As Iran has learned from Ukraine, the weaponization of drones has democratized military power.
All of this matters to Central Europe's property markets (especially the industrial sector) because globalization was only viable in a unipolar world. Now that China competes with the United States both militarily and economically, the world is splitting back into spheres of influence.
A new paradigm of statecraft, in which economic power is used as leverage for foreign policy, is being created before our eyes. That means if you want access to the US market under the current regime, you have to give up some level of economic, even political, sovereignty. For manufacturers, this creates new dilemmas and strategic considerations.
Power games are fueling the transition to nearshoring and higher prices. The focus is no longer on efficiency, but rather "resilience", and it's a long-term, expensive undertaking. Countries as well as companies have to secure their supply chains by making them shorter and by coming up with a Plan B for multiple components. That’s not cheap.
What’s now clear from recent geopolitics is that globalization isn't coming back and inflation isn't going away. The lesson since 2020 has been that whether it’s a regional conflict, a pandemic, or climate change, the days of clear sailing are over.
CEEQA
CEEQA’s short list has been announced, ahead of the huge event’s unfolding later this month at the Wyscigi Racecourse in Warsaw. Check the link to see if you or your competitors are on it. They’ll all be on site at the Gala, which the organizers have embelished with a live show by the singer Natalie Imbruglia. She’s the main attraction for the well-known after-party and will be performing her stand-out hit “Torn”. Up to 700 real estate professionals are predicted to be attending this year, including yours truly. ThePrime has been a media partner of CEEQA since 2025.
RE News
Prague-based Crestpoint Capital Partners has acquired Pasaz Lodzki, a 36,400 sqm shopping centre in Lodz. It's done so on behalf of a Czech private equity account from UK-based Stage Capital. The center is anchored by Auchan and Decathlon with around 60 tenants. The asset draws 3.5 million visitors annually from a primary catchment of over 470,000 residents. Polish retail has been a hot ticket item for Czech capital in recent months.
CEE commercial real estate investment reached €2.1 billion in Q1 2026, down 29% year-on-year from a record 2025 that topped €11.6 billion, according to Colliers. Full-year 2026 volume is forecast at €11.5-12 billion. Poland led Q1 with €1.1 billion, accounting for half the regional total. Hungary posted its strongest Q1 since 2018 at over €325 million. Czech capital contributed roughly €460 million region-wide. Prague remains the lowest-yield market, with office yields at 5.25% and shopping center at 6.0%.
Prologis has renewed its lease with DHL for 13,000 sqm of warehouse space at Prologis Park Brno-Syrovice DC1. DHL currently occupies approximately 200,000 sqm across Prologis parks in Czechia, including major hubs at Prague D1 West and Prague-Jirny. The Brno-Syrovice facility serves a global connectivity manufacturer active in renewables and industrial automation. As part of the renewal, the building received an upgraded energy connection to support current and future operational needs.
Accolade has appointed Gary Mazzotti as chairman of the board of Accolade Holding. Mazzotti, formerly CEO and vice-chairman at EP Infrastructure and a former CFO at Kooperativa. In all, he brings over 30 years of experience in finance and infrastructure investment. He'll focus on institutional investor relations and capital strategy. The group manages a €3.9 billion industrial portfolio across 64 parks in eight European countries.
UDI Group has received approvals to build SIDE Smichov Living, a 58,000 sqm residential-led scheme between Strakonicka and Nadrazni streets in Prague 5. Designed by CMC Architects, the brownfield project delivers around 1,200 small and mid-size apartments alongside retail and services. The permitting process took 11 years.
Entrepreneur Petr Dedek is developing a CZK 12 billion hockey arena for more than 22,000 fans. The complex includes a 2,800-seat secondary arena, a hotel with conference facilities and parking for over 2,000 cars. The arena could hold up to 25,000 concert goers. Construction on a former landfill site on the city's northeast edge could begin this year pending municipal agreement. Dedek has held preliminary talks with the NHL about future European programming.
Gross industrial demand in Czechia hit 422,000 sqm in Q1 2026, with 230,000 sqm of net new take-up, according to 108 Real Estate. Automotive was the key driver, posting record Czech production volumes. Vacancy fell to 4.76%, with prime rents near Prague and Brno reaching €7.70. The biggest Q1 completion was the 214,000 sqm H&M facility at Panattoni Business Park Cheb.
Stockholm-listed Svedbergs Group is acquiring Czech bathroom products holding UBC, which owns brands like Sapho, Aqualine and Polysan. Svedbergs will initially take an 80% stake in UBC, with the remaining 20% to follow within five years. UBC reported 2025 revenue of €34 million and EBITDA of €4.2 million. Analysts estimate the 80% stake at CZK 700-800 million. The deal is expected to close in Q2 2026.
Drees & Sommer has acquired 100% of Warsaw-based ADC sp. z o.o, (and its 70 employees) increasing D&S's headcount in Poland to more than 90. Just as importantly, it adds integrated design, planning and construction supervision capabilities to the services it can offer. ADC will operate under the brand "ADC -- Part of Drees & Sommer" with its existing management team remaining in place. ADS has delivered over 300 projects since its inception in 2018.
Finance Minister Alena Schillerova has reintroduced state bonds for retail investors: a five-year fixed bond at 4.5% annual yield, an inflation-linked bond with a 2.5% maturity premium, and a new three-month Flexi Bond at 3.5%. A maximum of CZK 3 million can be bought, beginning June 28, via dluhopisy.gov.cz.
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