The Polish Chamber of CommercialReal Estate (PINK) has published figures summarizing the office market in eight major regional markets in Poland (Kraków, Wrocław, the Tri-City, Katowice, Poznań, Łódź, Lublin, Szczecin) for Q1 2022. 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, Savills) and includes information on existing modern office stock, new completions, take-up volumes and vacancy rates.
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At the end of Q1 2021, the total modern office stock in the eight major regional markets amounted to 6,270,900 sqm. The largest office markets in Poland (following Warsaw) were Kraków (1,638,800 sqm), Wrocław (1,282,500 sqm) and the Tri-City (992,200 sqm).
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In Q1 2022, there were 16 projects delivered to the market offering more than 243,500 sqm of office space, mostly in Katowice (116,300 sqm), Wrocław (36,200 sqm) and Tricity (31,800 sqm), with the largest one being .KTW II (39,900 sqm) developed by TDJ Estate in Katowice.
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At the end of Q1 2022 in the eight major regional markets 970,100 sqm remained vacant, resulting in a vacancy rate of 15.5% (increase by 1.4 pp q./q. and increase by 2.6 pp compared to the end of Q1 2021). The highest vacancy rate was recorded in Katowice - 19.8%, when the lowest in Szczecin – 3.0%.
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The total volume of leasing activity in Q1 2022 amounted to 160,500 sqm, which is 25% less than in the previous quarter, and 63% more than in Q1 2021. The largest volume of space was leased in Kraków (38,100 sqm) and Wrocław (38,400 sqm).
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In the Q1 2022 take-up, the highest share in transaction volume was attributed to new deals: 68.9% (including pre-lets transactions and owner-occupier deals). Renewals of current lease agreements attributed to 21.2% while expansions to 4.6%.
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The largest transactions executed in Q1 2022 include a new lease by PWC in .KTW II building in Katowice, a new lease by Keyword Studios in Global Office Park in Katowice for 9,300 sqm, lease renewal by Ericsson in Olimpia Software Pool in Łódź for 7,700 sqm, and a pre-let by OTFC S.A. in The Park I in Kraków for 7,000 sqm.
