The Polish Chamber of Commercial Real Estate (PINK) has published data on the office space market in eight major regional markets in Poland (Kraków, Wrocław, Tricity, Katowice, Poznań, Łódź, Lublin, Szczecin) for the third quarter of 2022.
Consulting companies operating in the commercial real estate market (BNP Paribas Real Estate, CBRE, Colliers, Cushman&Wakefield, JLL, Knight Frank, Newmark Polska, Savills) are the sources of the information for this report. The report's summary focuses on the existing supply of modern office space, new buildings completed, the volume of leasing transactions and the amount of free space.
Office market in Wroclaw: IIIQ2022
At the end of the IIIQ2022, the total existing supply of modern office space in the eight major regional markets amounted to 6,357,400 sqm. Consistently, Kraków (1,651,700 sqm.), Wrocław (1,320,600 sqm.) and the Tricity (1,011,000 sqm.) remain the largest office markets in Poland (after Warsaw).
In the IIIQ2022, two buildings with a total area of 20,200 sqm were put into operation. These projects were: Quorum Office Park D (developer Cavatina, 16,200 sqm) and L'Uni (developer Luni Sp. z o.o., 4,000 sqm). Both projects are located in Wroclaw. Furthermore, the renovation of the Orląt Center building in Wroclaw (15,900 sqm) has been completed and now offers commercial space for lease.
Rent and vacancy property on regional office markets
At the end of the IIIQ2022, in eight major regional markets there was 967,200 sqm of office space available for immediate rent. The highest vacancy property rate was noted in Łódź - 22.0%, and the lowest in Szczecin - 3.9% (the only city with the rate below 10.0%).
The total volume of rent transactions registered in the IIIQ2022 amounted to 106,300 sqm, which is 44% less than in the previous quarter, and 6% less than in the same period of 2021. The largest amount of spaces was leased in Krakow (24,800 sqm), Wroclaw (23,300 sqm) and Gdansk (22,900 sqm).
In the tIIIQ2022, new contracts had the highest proportion of demand: 68% (including pre-leases and space for the property owner's own use). Renegotiations and prolongations of existing contracts accounted for 25% of registered demand, and expansions accounted for 7%.
Real estate market: the largest transactions
Among the largest transactions closed in the IIIQ2022 are a pre-leasing agreement with a confidential IT sector tenant in the Ocean Office Park D building in Krakow (4,700 sqm), an expansion agreement with Keywords Studios in Global Office Park A1 in Katowice (3,800 sqm), and a lease renewal with TietoEvry in the Green 2Day building in Wroclaw (3,700 sqm).
New offices in Wroclaw and office building sold for €100 million
A record-breaking office market transaction took place in Wroclaw in 2022. The MidPoint71 complex on Powstańców Śląskich Street was sold for more than €100 million. It is the largest office building in Wroclaw completed this year. Thus, Echo Investment's investment increased the Wrocław office market by more than 36 thousand sqm of space.
MidPoint 71 was built in the neighborhood of Sky Tower, the tallest skyscraper in Wroclaw, and the Centrum Południe complex on Powstańców Śląskich Street.
A Wroclaw city and business center is being built on Powstańców Śląskich Street
17 floors, more than 21,000 sqm of office space, terraces for tenants or a basketball court - this is what the newest skyscraper in the Centrum Południe office complex, which Skanska is building on Powstańców Śląskich Street, will look like.