Luxembourg-based investment company CPI Property Group (CPI) has reported record-high occupancy across its European property portfolio, stating that its assets are approaching full operational capacity. This milestone comes amid a broader recovery in the European commercial real estate sector following the COVID-19 pandemic and reflects growing tenant demand for flexible, sustainable, and efficiently managed spaces.
According to CPI’s latest financial report, occupancy levels across key segments—office, retail, and hospitality—have surpassed 96%, marking the group’s highest performance in the past five years. This achievement is attributed to both renewed leasing demand and proactive asset management strategies, including renovations, ESG integration, and tenant-focused property upgrades.
About CPI Property Group
CPI is one of the largest property investment groups in Central and Eastern Europe, managing over €20 billion in assets. Its portfolio spans Czechia, Germany, Austria, Poland, Hungary, France, Italy, and Switzerland, with a strong presence in office buildings, shopping centers, residential properties, and hotels.
The group owns more than 900 properties, including notable assets such as Quadrio (Prague), Złote Tarasy (Warsaw), Immofinanz Tower (Vienna), and Rue de la Paix (Paris). CPI is deeply committed to sustainability, with a significant portion of its assets certified under BREEAM and LEED green building standards.
Segment Performance Highlights
Office Real Estate
Offices remain the backbone of CPI’s portfolio, accounting for approximately 43% of total assets. In core cities like Prague, Berlin, and Warsaw, occupancy rates have exceeded 95%, with average lease terms of 6.7 years. Demand is especially high in premium business centers, where vacancy rates have dropped to near zero.
Retail Properties
CPI’s shopping centers—including Campona (Budapest), Palác Flora (Prague), and Złote Tarasy (Warsaw)—are operating at an average 98% occupancy. The rebound is driven by rising consumer activity, particularly in capital cities and tourist hubs. New tenants include international brands such as Decathlon, Zara Home, and Bershka, expanding their footprint in the region.
Hospitality Sector
Despite lingering challenges in the tourism industry, CPI’s hotels in Prague, Vienna, and Bratislava have achieved stable occupancy levels of 80–85%, up 12% year-on-year. Demand is particularly strong in business travel and converted aparthotels, popular among professionals and digital nomads.
Residential Assets
The group’s residential properties, mainly in Czechia and Germany, maintain occupancy above 97%, especially in long-term rental projects. CPI is also exploring new opportunities in affordable housing and ESG-driven urban redevelopment.
Growth Drivers and Strategy
Analysts attribute CPI’s high occupancy to several strategic initiatives:
– Adaptive property management, including flexible layouts and multi-use space conversion
– Strong ESG focus, with nearly 75% of assets green-certified
– Smart building systems and IoT-based energy monitoring
– Digital leasing infrastructure with online booking, e-signatures, and customizable lease terms
Financial Metrics and 2025 Outlook
In the first half of 2025:
– Rental income reached €538 million, up 6% year-over-year
– EBITDA increased 4.3%, totaling €412 million
– The group maintained a healthy Loan-to-Value (LTV) ratio of 43%
– New developments worth over €600 million are planned in Vienna, Bratislava, and Munich
CPI also continues to optimize its portfolio by selling non-core assets and reinvesting in energy-efficient, high-yield properties.
Market Commentary and Analyst Views
Josef Urban, a real estate strategist at Cushman & Wakefield, stated:
“CPI is one of the few players in the region effectively combining large-scale portfolio management with deep ESG integration. Their near-full occupancy is a direct result of their strategic agility and tenant-centric approach.”
Analysts at JLL added that Central Europe’s commercial property market remains resilient to global disruptions, with strong local demand and quality stock helping maintain stable occupancy in office and retail sectors.
Conclusion
CPI’s near-full utilization of its real estate portfolio is a testament to the company’s effective, forward-looking strategy, blending flexibility, sustainability, and innovation. As tenant expectations evolve and ESG standards tighten, CPI continues to demonstrate a robust and adaptable business model aligned with the realities of modern European real estate. With strong financial performance and multiple projects in the pipeline, CPI reinforces its position as one of the most stable and dynamic property groups in the EU in 2025.
