New office space for lease is being absorbed very quickly in Tricity. In the first half of 2019, the region’s net absorption of 16,300 sqm nearly matched new supply (17,400 sqm). Approximately 50,000 sqm of new office space is scheduled for delivery by the end of 2019.
According to Cushman & Wakefield, Tricity saw its total office stock climb to 792,400 sqm at the end of the first half of 2019 and remained the third largest regional office market behind Krakow and Wrocław (each with more than a million sqm of office space). Of the three office completions in Gdansk providing a total of 17,400 sqm, the largest was Heweliusz (10,000 sqm), delivered by Apollo-Rida Poland, followed by Hossa’s Garnizon – Hiro (5,000 sqm) and Office Park Kokoszki B (2,400 sqm).
Due to limited office space availability, Tricity’s total leasing volume hit 35,200 sqm in the first six months of 2019, which represented a 36% year-on-year increase. Renewals and regearing accounted for 43% of the total take-up, while new leases and expansions made up 39% and 18%, respectively. The largest transactions included Nordea’s three leases in the Olivia Business Center, with the expansion and renegotiation of the 10,846 sqm lease in Olivia Star being the biggest of the three, as well as new deals done by Dynatrace and Amazon - each for approximately 4,000 sqm.
At the end of June 2019, Tricity’s vacancy rate was 6.1%, while prime office rents stood at €14/sqm/month.
