According to Cresa, Warsaw’s total office stock has risen by more than 3.75% over the year to 5.42 million sqm and the absorption rate is down by 1.4% compared with Q3 2017. The vacancy rate is at 10%.
According to Cresa’s latest report, the vacancy rate on Poland warehouse market is at a record low of 4.3% at the end Q3 2018 (down by 0.9 pp compared to September 2017). With new supply continually on the rise, Poland’s warehouse and industrial stock has already surpassed the 15 million sqm mark.
In their early days, start-ups require a flexible working environment and usually opt for co-working space, which, however, is relatively costly in the long term. That’s why it’s important that they do not overstay there and move forward at the right time, says Artur Sutor, Partner and Head of Office Department at Cresa Poland.
High retail space saturation will attract new tenants to Poland. It is a hallmark of a mature and stable market where retailers are able to make store turnover and expansion plans a lot more easily, says Szymon Łukasik, Head of Retail at Cresa Poland.
In mid-2018, Wrocław’s office stock reached 1.01 million sqm, which represented a 16% increase on the same period last year, according to Cresa. Eight new office buildings providing a total of 104,000 sqm were delivered to the market between January and June 2018. The largest office completions included Echo Investment’s 24,900 sqm Sagittarius, which was delivered in Q2, followed BZ WBK’s 17,000 sqm office building and Echo Investment’s 13,900 sqm West Link.
Office supply on the Tricity market keeps breaking new records with the average annual growth at 9% for the last five years. Tricity is currently Poland’s third-largest regional office market (excluding Warsaw) and continues to strengthen its position, according to Cresa’s report.
Krakow retains the crown as Poland’s largest regional office market as it saw its office stock rise by 17% in the past year to 1.16 million sqm, says real estate advisory firm Cresa in its latest report.
At the end of H1 2018, there was more than 2.13 million sqm of warehouse and industrial space under construction across Poland with Central Poland accounting for more than one-fourth of the development pipeline, according to Cresa. Despite the healthy supply, the vacancy rate will remain below 5% this year and is likely to edge down to approximately 4% next year on account of a base effect and the expected robust occupier demand.
Cresa, the world’s largest tenant-only commercial real estate firm, has opened an office in Krakow. Cresa already has five offices across Poland: in Warsaw, Wrocław, Tricity, Łódź and Krakow. Its Krakow office is located in High5ive.
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