At the end of 2018, Poznań’s total office stock amounted to 479,100 sqm. Six projects completed in the last twelve months delivered 21,200 sqm of new office space. The largest completions included buildings IV and V of the Pixel complex: 8,850 and 8,950 sqm, respectively. Office take-up hit 70,400 sqm, which represented a 10% y/y decrease. Key lease transactions comprised the 14,750 sqm renegotiation and expansion by Santander Bank Polska at Poznań Business Garden, a deal signed for 10,300 sqm at a Nowy Rynek building and Carlsberg’s 3,950 sqm renegotiation at Nowe Garbary. Cushman & Wakefield summarised the Poznań office market at year-end 2018.
“2018 saw a weak growth in new office supply and a record low vacancy rate in Poznań, particularly in its central locations where the availability of unoccupied space was very limited. Poznań’s office market grew at a steady rate in the last twelve months. Most tenants are, however, waiting for new projects to come onto the market in 2019 which are expected to bring the city’s total office stock to nearly 590,000 sqm. This healthy level of new supply will provide current tenants with a number of interesting relocation options. Compared with other cities, the growth of the Poznań market is largely being driven by companies that have already gained a foothold here. This guarantees greater market stability in the long term despite a relatively weaker growth,” says Grzegorz Bobrowski, Negotiator, Office Agency, Cushman & Wakefield.
Poznań’s office vacancy rate stands at a low of 7.3% due to a limited number of new office completions in the last two years, which pushed the volume of unoccupied office space down to its lowest on record.
More than 110,000 sqm of new office space is expected to come onto the Poznań market in 2019, which despite a relatively high number of pre-lets at projects scheduled for delivery in the space of twelve months will increase supply and provide established tenants with a variety of interesting relocation options. Despite the low vacancy rate, in 2018 office rents stood at €14.50/sqm/month in the city centre.