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The office market in Wroclaw is booming again. Wroclaw among the biggest players
- The first half of 2023 in Wroclaw's office market brought the highest tenant activity among major regional cities, as well as developers, who built nearly 151,000 sqm of office space, reports Knight Frank, a consulting firm. See how the office market in Wroclaw is changing.
In the second quarter of 2023, the office market in Wroclaw expanded by 11,700 sqm, as part of the Brama Olawska project (Tower Investments). From January to June, developers delivered nearly 32,600 sqm, accounting for more than 28% of the total space completed in regional cities. In the photo gallery, see the most important data: how much office space there is in Wroclaw, vacancy rates and prices.
Wroclaw among the largest office markets in Poland
Office stock in the capital of Lower Silesia totaled more than 1.31 million sqm at the end of June, allowing the city to remain second among regional markets.
Wroclaw had the highest office space under construction in regional markets. At the end of Q2 2023, 151,000 sqm remained under construction, and assuming developers manage to meet their deadlines, 60% will be delivered to the market later this year. More projects are scheduled for completion in 2024.
Anna Patrzyk-Sperzynska, director at Knight Frank.
Offices in Wroclaw in 2023. Office space under construction in 2023.
The largest projects remaining under construction include Inifinity (22,000 sqm, Avestus Real Estate) and Quorum Park A and B (total space of 71,000 sqm, Cavatina Holding).
It is worth noting that also the activity of Wroclaw tenants, compared to other major regional cities, was the highest, and in the first six months of 2023 the volume of signed contracts amounted to 88,100 sqm. The achieved result accounted for 26% of all transactions during the period. In Q2 alone, the volume of leased space amounted to more than 51,700 sqm.
Katarzyna Bojar, a consultant in the market research department at Knight Frank.
The largest share, more than 68%, went to new contracts. Renegotiations accounted for nearly 28% of the transaction volume, and the remaining 4% was related to expansions.
Wroclaw office market in 2023: high demand and lower vacancy rates
High demand reduced the vacancy rate, which fell by 1.2 pp quarter-on-quarter to 16.1% at the end of June. Compared to the same period in 2022, however, the ratio remained 1.3 pp higher.
How much do offices in Wroclaw cost in 2023. The amount of rents in the office market in Wroclaw
Asking rents in Wroclaw at the end of June 2023 remained stable relative to the previous quarter, ranging from EUR 10.00 to EUR 16.00 per sqm per month.
- Continued high construction costs, as well as the still high cost of servicing construction loans, inhibit investors' negotiating power, so especially in new buildings an increase in rents is possible. Service charge rates ranged from PLN 16.00 to PLN 31.00/sq.m./month, Knight Frank points out.