The Polish Chamber of Commercial Real Estate (PINK) has published figures summarising office market in eight major regional markets in Poland (Kraków, Wrocław, the Tri-City, Katowice, Poznań, Łódź, Lublin, Szczecin) for Q2 2021.
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.
At the end of Q2 2021, the total modern office stock in the eight major regional markets amounted to 5,936,000 sq m. The largest office markets in Poland (following Warsaw) were Kraków (1,599,200 sq m), Wrocław (1,242,600 sq m) and the Tri-City (924,000 sq m).
Between April and June 2021, 6 developments with a total office space of 80,100 sq m were completed. The largest developments delivered to the market during this period were Nowy Rynek D (35,800 sq m, Skanska) in Poznań and Tertium Business Park III (B) (13,400 sq m, Buma) in Kraków. With additional 5 projects completed in Q1, over 126,500 sq m of office space has been delivered to the market since the beginning of 2021.
The vacancy rate estimated for the eight major regional markets stood at 13.4% at the end of June 2021, which gives 792,500 sq m of office space available immediately for lease. The vacancy rate increased by 0.7 pp., and in the corresponding period of the previous year, the vacancy rate increased by 3.2 pp. The largest vacancy rate was recorded in Łódź 18.3%, while the lowest was in Szczecin – 7.8%.
In the second quarter of 2021, demand for modern office space in eight regional markets reached 166,000 sq m. In the first half of the year, the total demand for offices outside Warsaw amounted to over 264,200 sq m. Renegotiations accounted for the highest share in the structure of demand in Q2 2021 - 47%. New agreements accounted for 45%, expansions accounted for 8%, while owner-occupied space accounted for less than 1%. In Q2 2021 the most popular market among tenants was Kraków with demand registered at 47,400 sq m.
The largest transactions concluded between April and June 2021 were: the lease renegotiation and expansion of Rockwell Automation in A4 Business Park III in Katowice for 19,500 sq m, the lease renewal by a confidential tenant from the banking sector in the Kapelanka 42a building in Kraków for 15,600 sq m, and the renegotiation of 12,800 sq m in the Kazimierz Office Center building in Kraków by a confidential tenant from the business services sector.
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