At the end of Q1 2021, the total modern office stock in Poland's eight major regional markets amounted to 5,826,400 sqm. The largest office markets in Poland (following Warsaw) were Kraków (1,574,000 sqm), Wrocław (1,226,300 sqm) and the Tri-City (913,600 sqm). The Polish Chamber of Commercial Real Estate (PINK) has published figures on the office market in eight major regional markets (Kraków, Wrocław, the Tri-City, Katowice, Poznań, Łódź, Lublin, Szczecin) for Q1 2021.
In Q1 2021, 5 office projects totalling 46,400 sqm of office space were completed in the major regional markets. The new supply was delivered in Kraków (21,400 sqm in 3 projects) and to the Tri-City (25,000 sqm in 4 office projects). The largest new office schemes completed in this period were Palio Office Park A (16,500 sqm, Cavatina), in Gdańsk and Equal Business Park D (11,650 sqm, Cavatina) in Kraków.
The vacancy rate estimated for the eight major regional markets stood at 12.9% at the end of March 2021, which gives 753,000 sqm of office space available for lease immediately. The vacancy rate increased by 0.2 pp., and in the corresponding period of the previous year, the vacancy rate increased by 3.4 pp. The largest vacancy rate was recorded in Łódź 16.9%, while the lowest in Szczecin – 7.4%.
In Q1 2021 almost 98,300 sqm of office space was subject to lease in the major regional markets. The biggest share of gross take-up was attributed to renewals – 45%. New lease agreements constituted 42% of total take-up, 9% accounted for owner-occupied office space and expansions took 5% of the total take-up. The strongest leasing activity in this period occurred in the Tri-City, where 37,900 sqm was leased.
The largest transactions concluded in Q1 2021 were in Kraków and the Tri-City, including a renewal signed in Kraków by IBM in Galileo, Newton and Edison buildings for 11,300 sqm, renegotiation of Intel’s agreement in Tryton Business House in Gdańsk for 9,800 sqm, 8,500 sqm in the new LPP office building in Gdańsk, built for the owner's use, and renewal for 7,000 sqm in Baltic Business Centre in Gdynia by the confidential client.
The data is sourced from advisory companies from the commercial real estate sector (BNP Paribas Real Estate, CBRE, Colliers, Cresa, Cushman&Wakefield, JLL, Knight Frank, Savills) and includes information on existing modern office stock, new completions, take-up volumes and vacancy rates.
