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 Q2 2023. The data is sourced from advisory companies from the commercial real estate sector (Axi Immo, 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 Q2 2023, the total modern office stock in the eight major regional markets amounted to 6,513,800 sqm. The largest office markets in Poland (following Warsaw) were Kraków (1,750,500 sqm), Wrocław (1,314,600 sqm) and the Tri-City (1,023,800 sqm).
- In Q2 2023, the new supply reached 48,100 sqm of office space. The largest projects delivered to the market were Nowy Rynek E (Skanska, 25,100 sqm) in Poznan and Brama Oławska (Tower Inwestycje, 11,700 sqm) in Wroclaw.
- At the end of Q2 2023, approximately 1,115,500 sqm of vacant space was offered in the eight major regional markets, resulting in the vacancy rate of 17.1% (increase by 1.2 pp. q./q. and by 1.9 pp. compared to the corresponding period in 2022). The highest vacancy rate was recorded in Łódź – 23.4%, while the lowest in Szczecin – 4.4%.
- The total take-up stood at 166,000 sqm in Q2 2023, which is a result similar to that of the previous quarter, but 12% below Q2 2022. The largest volume of space was leased in Wroclaw (51,700 sqm) and Kraków (51,600 sqm).
- In Q2 2023, the highest share in transaction volume was attributed to new deals (including pre-let transactions), which accounted for 72% of the total activity. Renewals of current lease agreements accounted for 20% of take-up while expansions made up 7%. Office space leased for owner needs accounted for 1% of the quarterly demand.
- The largest transactions signed in Q2 2023 were a new deal of 20,300 sqm by BNY Mellon in Centrum Południe 3 in Wrocław, the renegotiation of a contract of 5,200 sqm by an IT company in Podium Park in Kraków and renewal of lease agreement of 4,700 sqm by UPM-Kymmene in CU Office in Wrocław.