The journey continues
Now we give thanks for 2022 where, despite the pandemic, war, and changing market conditions, Croisette has risen to meet global challenges and we continue our journey.
CEO & Founder
Despite pandemics, wars, and changing market conditions, Croisette has risen to meet global challenges and we continue our journey. With offices in four countries across the Nordics, we have demonstrated our dedication to innovation and our long-term values. It is now that we allow ourselves a brief pause for reflection. We are reminded that no matter how great the challenges present themselves, with the right attitude, commitment, and long-term vision, we will find opportunities. The #croisetteworldtakeovertour continues and 2023 will certainly take us to a whole new level.
Styrmir Bjartur Karlsson
Managing Director, Croisette Iceland
2022 was very challenging with market conditions with increased inflation that resulted in the highest increase of CBI rates in 10 years. We moved to a new location in a premium retail street in heart of Reykjavik with great visibility. Croisette strengthened its relationship with Invest in Iceland by becoming an official property advisory firm that the agency uses to direct its clients for reports and possible FDI in the Iceland property market.
Croisette Home was launched by selling the most expensive residential villa in the country to a foreign investor. This came at the perfect time when we were launching our residential brokerage team and in the 3Q we recruited 2 full-time employees to take over that part of the business moving forward we estimate that residential through Croisette Home will be a large part of our turnover for 2022 with many premium listings coming in and selling.
2023 will be full of opportunity when we will strive to achieve greatness in continuing to grow the Croisette brand, being the only full-service property advisory firm in Iceland and providing outstanding results for our clients.
Managing Director, Croisette Denmark
2022 has been a challenging and exciting year at Croisette Denmark in many ways. On the transaction front, we have experienced great willingness to buy at the beginning of the year and then a very hesitant market on both buyer and seller since. Towards the end of the year, we experienced that the worst waves had subsided and that there may no longer be a great distance between buyer and seller as earlier in the year. Most people are realizing and adapting to new market conditions and trading based on them. We, therefore, look forward to 2023 with a very positive mind.
On the leasing side of the business, we have experienced great activity throughout the year, but especially after the effects of the high inflation began to be felt by the tenants, as many had their rents regulated to such an extent that they as tenants started to explore alternative options for new leases, where the tenants' focus on energy-friendly leases/buildings as well as more focus on flexible workstations and interior design options have been boosted at a time post covid when we have seen that the need can change quickly. Almost in all segments, we see a historically low vacancy rate, which has given us extra busy searching for locations for potential tenants among the relatively low supply in the market.
Whether it is about leasing or transaction, large and small, national, or international, we are very much looking forward to continuing our journey towards progress throughout Croisette in 2023, where we already expect to be able to unveil new initiatives in near future.
If you need help with leasing, if your company needs a new lease, or if you just need a fresh pair of eyes on the purchase or sale of investment or property for your own use, you are always welcome to contact us for a meeting about the possibilities with us.
Managing Director, Croisette Denmark
Croisette Finland started its operations in Q3/2022 and the timing of the launch happened in challenging market conditions. The war in Ukraine had started in February and inflation was through the roof.
Despite the challenging market conditions, on October 22 Croisette Finland opened its first office in Helsinki CBD. Croisette Finland has grown rapidly and at the end of 2022, the team is 5 FTEs and 2 trainees. During Q4/2022 we were preparing to launch our leasing business line and went live with our listings in Jan-23 with c. 400 listings on our website and all major platforms in Finland.
The transaction side has built a solid pipeline during 2022 and is currently working on 8 different assignments. We are entering 2023 with a solid team and steady pipeline both in leasing and transactions.
Deputy CEO & Head of Leasing
2022 has been a challenging year in many ways, however, our leasing department has performed well overall. The leasing market has been relatively unaffected by the turmoil in the world during the year. The main concern has been how the index increase would be handled and that lead times for decisions have tended to be very long. Demand from tenants has continued to flow in, whether for office, retail, industrial, or warehouse & logistics.
Our strategy is to increase our presence in the warehouse & logistics and this is also where we have left the most square meters during the year. We will soon be able to announce a number of significant lettings and letting assignments which will make our position in the market even more substantial.
A big reason for our success is that we are on the ground locally where we operate. Over time, this will make us the only advisor of choice as we possess a global network combined with local expertise.
David Almqvist & Olle Håkansson Nobel
Co-heads of Transaction
2022 has been the starting point for a paradigm shift in the transaction market. A long era of very cheap capital came to an end when interest rates began to soar in the spring as a result of inflationary pressures not seen for many years. In addition to higher interest rates, banks and financiers have also become generally more cautious while buyers and sellers have struggled to find new price levels to agree on. The volume of transactions in the market has halved and the number of deals has fallen even more as the volume has been sustained by a handful of larger structure deals.
2023 will be a very exciting year as we see a strong desire to do business from both buyers and sellers while the need for good advice has become even greater in the new market climate. Croisette Transactions is very well positioned to move positions forward further in 2023. Despite the market, we have exceeded all the operational targets we set for 2022 by a wide margin. We are 30-40% ahead of expectations in terms of business volume on assignment and have significantly expanded our client base. We have also launched several new services. Going into 2023, we are bringing with us a pipeline that far exceeds what we had in the past, which is why we are looking forward to 2023 with great confidence.
Valuation & Analysis
Head of Valuation & Analysis
In 2022, the valuation leg has of course followed the other developments in the real estate market and had both challenges and successes. Challenges in terms of assessing market levels in particular in a constantly changing market with many non-stable parameters and low transaction activity. Successes in many forms internally. We appointed Emelie Tisell as Head of Valuation in Gothenburg, who has made incredible success already in her first year. Our market share is increasing year on year and we have had incredible momentum in Gothenburg in particular. We have also invested in internal development during the year to optimize our tools and continue to deliver in record time in 2023.
Even in a challenging market, we look forward to offering our clients the best and most accurate advice in valuation and analysis.
Head of Human Capital
We look back on 2022 in which the prevailing environment has challenged the real estate industry. In spite of this, our working year is characterized by new contacts, established partnerships, and a record number of appointments, which we are humbly pleased about! Croisette Human Capital closes the year with a turnover almost double that of the previous year, the result of hard work and new market share. We have signed framework agreements with four established real estate companies that enable us to act as the long-term partner we aspire to be.
Unfortunately, many industry colleagues have had to leave their positions during the year. We, therefore, look forward to stepping into 2023 and continuing our work to provide the real estate industry with the right skills.
Head of Insurance Advisory
The business will have its first full year of operation in 2022.
I would like to thank customers, insurers, partners, and employees for the past year. We are pleased with a successful year of work in which we have sharpened our offer and reached out to many interesting companies in the real estate and construction industry.
We are particularly proud of our home insurance solution, which offers property owners both security and added value; The Home Insurance solution is offered to Property Owner's tenants, it is accessed via a customer-specific website, where the tenant himself fills in his details to calculate the premium and take out his home insurance policy. The setup makes it easy for the Property Owner to offer their tenants the security of comprehensive home insurance - and at the same time feel confident that their tenants are insured.
We are proud of the excellent client base we have established during the year, which we will continue to manage and develop in 2023 while looking forward with great enthusiasm to new and exciting assignments in the coming year.
In a challenging market, we are particularly pleased to be able to offer solutions for property owners that can provide both increased cash flow and increased net operating income for their property portfolios. Get in touch and we'll tell you more.
Real estate agency
CEO of Våningen & Villan Group
2022 was the year in which Våningen & Villan was added to the Group, giving Croisette a new area of expertise in the HOME segment. Market-wise, the year was mixed in terms of the general market situation, but 2022 proved once again that we get homes sold even where others fail.
By adding value as we do in the business model, leads to higher scalability with clear processes for our customers. High availability and feedback will continue to be at the forefront of future property transactions.
As we look to 2023, we know that it will require retained commitment and motivated brokers which we have built through years of development around the brokerage service and which will be an important additional tool in a new economic climate.