- There is approx. 1.5 million sq m of office space under development throughout Poland
- Developer activity in Krakow at historic high – 280,000 sq m of offices under construction
Warsaw, 6 May 2016 – Advisory firm JLL summarizes the situation on the office markets in Warsaw and major Polish cities[1] at the end of Q1 2016.
Anna Młyniec, Head of Office Agency and Tenant Representation at JLL, comments: “In Poland, lease agreements for a total of 250,400 sq m of office space were signed in Q1 2016. Major office markets outside Warsaw accounted for 108,200 sq m of this number. The highest take-up was recorded in Warsaw – 142,200 sq m, followed by Kraków with 39,400 sq m. We expect an increase in tenant activity in the upcoming months.”
Biggest office lease agreements concluded in Q1 2016 in Poland
| Company | City | Building | Space (sq m) |
|---|---|---|---|
| Credit Suisse | Wrocław | Grunwaldzki Center | 10,800 |
| AON | Kraków | Enterprise Park E | 10,750 |
| Allegro | Warsaw | Q22 | 7,600 |
| Confidential tenant | Warsaw | Atrium 2 | 7,500 |
| Rockwell Automation | Katowice | A4 Business Park III | 7,450 |
| Primulator | Łódź | Primulator HQ | 7,300 |
| Shell | Kraków | Dot Office | 5,850 |
| Heineken Global Shared Services | Kraków | Vinci Office Center | 5,700 |
Source: JLL, PORF, Q1 2016
“The business services sector remains a key occupier on major Polish regional markets, accounting for approx. 63% of demand registered outside Warsaw in Q1 2016. In Wrocław, the sector accounted for 83% of the city's quarterly office take-up, in Katowice – 81% and in Kraków - 74%”, adds Anna Młyniec.
Supply
By the end of Q1 2016, total office stock in Poland reached approx. 8.3 million sq m. 218,000 sq m of new office space was delivered to market (113,000 sq m in Warsaw and 105,000 in other locations) in Q1 2016.
The biggest office completions in Q1
| Building | City | Space (sq m) |
|---|---|---|
| Eurocentrum Office Complex Delta | Warsaw | 25,000 |
| Astrum Business Park I | Warsaw | 22,600 |
| Tryton Business House | Gdańsk | 21,300 |
| Atrium 2 | Warsaw | 20,250 |
| Prime Corporate Center | Warsaw | 20,150 |
| Gdański Business Center II C | Warsaw | 19,700 |
| O3 Business Campus I | Kraków | 19,200 |
| C200 | Gdańsk | 17,000 |
| Kaufland HQ | Wrocław | 16,000 |
| Storrady Park Offices | Szczecin | 7,400 |
| Equal Business Park A | Kraków | 6,900 |
| KróLEWska | Warsaw | 5,400 |
| Tensor X | Gdynia | 5,000 |
Source: JLL, PORF, Q1 2016
“Currently, there is approx. 1.5 million sq m of office space under construction throughout Poland. The largest developer activity is in Warsaw, where 662,000 sq m is under construction, followed by Kraków - 284,000 sq m, Wrocław - 170,000 sq m and Łódź - 106,000 sq m. According to our preliminary forecasts, the Polish office market is likely to grow in 2016 by 900,000 sq m”, says Mateusz Polkowski, Associate Director, Research and Consulting, JLL.
Vacancy rate
Vacancy rate in Warsaw was14.1% by the end of Q1 2016. Outside Warsaw, the lowest vacancy rate was registered in Kraków (5.7%) while the highest was recorded in Szczecin (18.3%).
Rents
The highest prime rents in Warsaw’s city centre averaged out at between €21 and €23.5/ sq m / month. Outside the city centre, rents vary between €11 and €18 / sq m / month. As for major office markets outside Warsaw, the lowest rent rates are recorded in Lublin (€11 – €12 / sq / month) while the highest can be found in Poznań and Wrocław (€14 – €14.5 / sq m / month).
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In Q1 2016, JLL's team of experts advised on office lease transactions totaling approx. 61,000 sq m throughout Poland. This gave JLL a 34% market share, the highest among real estate advisory firms.
[1] Kraków, Wrocław, Tri-City, Katowice, Poznań, Łódź, Lublin, Szczecin