According to “Occupier Economics: Office Market in Tricity in 2019”, a report published by real estate advisory firm Cresa Poland, leasing activity topped 100,000 sqm in 2019, setting an all-time high on the Tricity office market. It was also 3% above the annual average for 2015-2019.
“In 2019, Tricity’s office market enjoyed the strongest occupier interest on record. On account of its location, this region saw most of its demand come from transport companies. The banking sector also accounted for a substantial share of office take-up. Tenants have a choice of offices to let in architecturally outstanding locations,” says Michał Rafałowicz, Head for the Pomeranian Region, Cresa Poland.
The site of the Gdansk Shipyard will be redeveloped in line with the current trends. Cavatina will build a modern office complex Palio Office Park there, while Stocznia Cesarska Development will revitalize the Imperial Shipyard at the mouth of Motława river. The Shipyard’s historic Dyrekcja building, which is currently being refurbished, will remain an office building providing 4,000 sqm upon completion. These projects will be developed with respect for the history of the place with very limited intervention into the original building fabric.
In Q4 2019, Tricity’s office market expanded by nearly 40,000 sqm. The largest office completion was Torus’ 33,700 sqm Neon, the fourth and last phase of the Alchemia complex.
Tricity’s office stock expanded by more than 8% year-on-year to 838,500 sqm at the end of 2019, with the annual growth rate for the last seven years averaging 13%.
The largest leases of 2019 included a 10,800 sqm lease renegotiation and expansion by Nordea in Olivia Star, a 9,500 sqm renegotiation and expansion by Jeppesen in Arkońska Business Park, and a 7 900 sqm. renegotiation and expansion lease in Alchemia III Argon (confidential tenant).
“2019’s absorption amounted to 67,300 sqm, down by almost 22% on 2018. This is commensurate with the fall in new office supply which was down by nearly 21% compared to 2018,” says Bolesław Kołodziejczyk, PhD, Head of Research & Advisory, Cresa Poland. – The region’s vacancy rate continued its downward trend – it stood at 4.9% at the end of Q4 2019, down by 1.2 pp compared to the same period in 2018.
Asking rents range between EUR 13,00 – 17,00/sqm/month in higher grade modern office buildings, with lower grade buildings commanding EUR 11.00–13.00/sqm/month.
Cresa is the world’s largest commercial real estate advisory firm that exclusively represents occupiers and specializes in the delivery of fully integrated real estate solutions. It serves clients through more than 80 global offices. Cresa Poland offers unbiased, independent commercial real estate advice. Its integrated services include conflict-free tenant representation, capital markets, market research and advisory, valuation, design & project management and workplace strategy. Cresa Poland is headquartered in Warsaw, with regional offices in Wrocław, Tricity, Łódź and Krakow. To learn more, please visit: www.nmrk.pl
