The Polish Chamber of Commercial Real Estate (PINK) has published figures summarizing office market in eight major regional markets in Poland (Kraków, Wrocław, the Tri-City, Katowice, Poznań, Łódź, Lublin, Szczecin) for Q1 2023. The data is sourced from advisory companies from the commercial real estate sector (BNP Paribas Real Estate, CBRE, Colliers, Cushman&Wakefield, JLL, Knight Frank, Newmark Polska, Savills) and includes information on existing modern office stock, new completions, take-up volumes and vacancy rates.
At the end of Q1 2023, the total modern office stock in the eight major regional markets amounted to 6,470,400 sqm. The largest office markets in Poland (following Warsaw) were Kraków (1,750,500 sqm), Wrocław (1,312,900 sqm) and the Tri-City (1,016,800 sqm).
In Q1 2023, the new supply reached 68,100 sqm of office space. The largest projects delivered to the market were Ocean Office Park B (Cavatina Holding, 28,600 sqm) and Fabryczna Office Park B5 (Inter-Bud, 14,000 sqm) completed in Kraków, and Centrum Południe 3 (Skanska Property Poland, 20,850 sqm) in Wrocław. Apart from these two markets, the modern office stock increased also in Gdynia after the development of Officer (Panorama Development, 4,700 sqm).
At the end of Q1 2023, approximately 1,029,700 sqm of vacant space was offered in the eight major regional markets, resulting in the vacancy rate of 15.9% (increase by 0.6 pp. q./q. and by 0.4 pp. compared to the corresponding period in 2022). The highest vacancy rate was recorded in Łódź – 20.5%, while the lowest in Szczecin – 3.1% (the only city with the vacancy rate below 10.0%).
The total take-up amounted to 175,000 sqm in Q1 2023, which is a result similar to that of the previous quarter and 13% higher compared to the same period of 2022. The largest volume of space was leased in the Tri-City (47,600 sqm), Kraków (38,400 sqm) and Wrocław (36,200 sqm).
In Q1 2023, the highest share in transaction volume was attributed to new deals: 50% (including pre-let transactions and owner-occupier deals). Renewals of current lease agreements accounted for 44% of take-up while expansions – 6.5%. Office space leased for owner needs accounted for 3% of the quarterly demand.
The largest transactions signed in Q1 2023 include: the renegotiation of a contract by Sii in Olivia Prime in Gdańsk (10,100 sqm), a new deal of Alorica in React in Łódź (5,000 sqm) and the renewal of lease agreement by UPS in Bema Plaza in Wrocław (4,600 sqm).
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