Avison Young provides comprehensive services in the field of commercial real estate (CRE). Commercial real estate are income-generating properties (e.g., office buildings, shopping centres, warehouses/logistics centres) or properties which generate income from their core business (e.g., hotels, campsites, marinas, gas stations, etc.; known as “trade-related properties”). Our clients include real estate investors, landlords, tenants, and financial institutions that finance real estate investments through loans or equity.
Our Zagreb office offers services across Croatia, Bosnia and Herzegovina, Slovenia, Serbia, Montenegro, Albania, Kosovo, and North Macedonia.
1. Property valuation
We conduct property valuations in accordance with RICS (Royal Institute of Chartered Surveyors) and IVS (International Valuation Standards). Our property valuation reports include an overview of the specific real estate market, tailored to the type of property being valued, ensuring a solid foundation for valuation methodology and results. From brief opinion of value reports (One-pager) to desktop reports and full valuation reports, we customize the depth and scope to suit clients’ needs, property complexity, and valuation purpose. We provide valuations for various purposes, such as internal use, financial reporting, secured lending, loan security, transactions, etc.
2. Letting Commercial Spaces (Landlord Representation)
We assist property owners in achieving high occupancy in their buildings, in finding new tenants, and negotiating lease terms. We let all types of commercial properties, including office buildings, retail properties, warehouses/logistics centres, and hotels. When securing tenants, we prepare marketing materials (teasers) for your space, create target tenant lists, organize property tours, collect, and analyse tenant offers, and assess their financial health to ensure you get the highest-quality tenants.
3. Tenant Representation in Finding and Leasing Commercial Spaces
We help businesses find suitable commercial spaces for new occupancy, relocation, or negotiations for lease renewals in their existing space. For tenant representation, we present multiple potential lease options (“long list”) and then narrow them down to the most suitable ones (“short list”) based on tenant feedback. After analysing landlord offers, we organize property tours. We assist tenants in understanding and analysing landlord offers and negotiating commercial lease terms.
4. Transaction Brokerage
Our team brokers real estate transactions on behalf of property sellers or buyers. For sellers, during the preparation phase of a sales campaign, we assist with setting the sales strategy and asking price, preparing marketing materials (teasers and investment memorandums), creating target lists of potential buyers, and preparing a virtual data room (for due diligence). During the sales process, we organize and conduct the marketing campaign, communicate with potential buyers, arrange property tours, analyse letters of intent, and help sellers select one or more buyers for the due diligence phase. During the due diligence phase, we assist sellers and their legal advisors in providing necessary documentation and negotiating commercial terms until the transaction is closed.
For buyers, we analyse the market and present multiple potential purchase options (“long list”), then narrow these down to the best matches (“short list”) based on buyer feedback. After analysing seller offers, we arrange property tours. We help buyers understand and analyse seller offers and negotiate transaction terms.
5. Market Research
We prepare tailor-made, detailed market research reports for one or more market segments (residential, office, retail, warehouse/logistics, hotels, etc.) in specific or broader locations (e.g., residential market in Zagreb, hotel sector on the coast, second-home market in Istria). Market research provides clients with detailed insights into the sector in which they plan to invest. Our reports cover market conditions and trends, supply and demand analysis, key performance indicators, or prices and sales/lease volumes, with context and insights into planned projects.
6. Studies
The most common types of studies we prepare for clients are Highest and Best Use (HBU) Analyses and Feasibility Studies. HBU analyses are conducted for land for development or properties intended for repurposing. The first step involves market analysis, which serves as a foundation for supporting or opposing specific development scenarios for the property. Subsequently, various potential development scenarios are analysed based on the property’s location, technical characteristics, and spatial planning. Through financial modelling of different scenarios, the optimal scenario is identified, representing the highest and best value for the property in terms of financial viability and sustainability. Feasibility studies evaluate a proposed development scenario for the property and, through detailed market research, concept design analysis, and financial modelling, address the question of how profitable and financially sustainable the project is and whether it is supported by the market demand.
7. Commercial and Technical Due Diligence
Commercial and technical due diligence of a property is typically conducted during real estate transactions. It can be prepared for the seller (Vendor Due Diligence) as part of transaction preparation or for the buyer, who seeks to verify the commercial and technical condition of the property under consideration. In the latter case, it is performed once the transaction enters the due diligence phase. Commercial due diligence includes detailed research of the specific market in the context of the property in question and an analysis of the property from a commercial perspective. This involves reviewing lease agreements, tenants, the property’s historical performance, and preparing a cash flow projection for the future period.
8. Hotel Operator Search and Selection
Ownership and management of hotels and resorts can often be separated and this is frequently desirable in cases where it is not the owner's core business or when the owner recognizes the added value provided by experienced hotel operators and brands. Various combinations are possible, ranging from non-branded hotels with outsourced management to branded hotels managed by international hotel brands under management agreements. Additionally, there are franchise agreements, where the owner retains hotel management while benefiting from the standards and advantages of an international brand. Hybrid arrangements, such as manchise agreements, are used when a brand manages the hotel for the first initial years under a management agreement, transitioning to a franchise agreement thereafter. Management or franchise agreements are often signed for extended periods (e.g., 20 years). Our team can assist you in finding and selecting operators or brands for any of these options and advise you in complex negotiations regarding all commercial terms.
9. Project Management
Projects are complex. We assist clients in meeting deadlines and budgets. We support tenants during renovations or relocations to leased or purchased properties. We also help with development projects, acting as intermediaries between clients (investors) and contractors/subcontractors. We represent clients' interests, helping them with project planning, contractor selection, bid analysis, project execution supervision, and budget tracking.
10. Property Management
Property management is a service beneficial to clients who own commercial properties with multiple tenants. Its primary purpose is to maximize the profitability of the property. This involves maintaining a high occupancy rate, mediating the leasing of vacant spaces, renewing contracts with existing tenants, cash flow projections, managing building investments (routine and capital maintenance), arranging facility management services, or organizing external contractors for routine and capital maintenance. It also includes monitoring utility expenses and coordinating with accounting to ensure cost allocation to tenants is effectively tracked. In addition to these tasks, timely and regular reporting to the property owner is essential.
11. Project Financing Advisory
We assist clients in the process of securing financing for their projects through the professional preparation of financial teasers, developing business plans with cash flow projections, debt service coverage ratio (DSCR) analysis, and repayment plans. We organize meetings with project financing departments at banks (and other financial institutions) for clients and accompany them during these meetings. Additionally, we advise clients on analysing bank offers and negotiating loan commercial terms and covenants.
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