According to Cresa Poland report “Occupier Economics: Office Market in Poznań Q1 2020”, office market in Poznań is heading towards achieving supply-demand balance. Within one year, office stock in Poznań increased by almost 11% and amounted to over 580,100 sqm by the end of March 2020. The average annual growth rate for this market in the years 2012–2020 was at the level of 11%.
In Q1, the Giant Office building (15,300 sqm, Giant Invest) was delivered to the market. Among others, the two remaining buildings of the Pixel complex (Garvest Real Estate) are still in the pipeline. By the end of Q1, the ratio of vacancies to the total stock was at 12.9%, a 2.9 p.p. decrease compared to the same period last year. The biggest vacancy rate was in non-central locations.
Between January and March, leasing activity amounted to nearly 13,000 sqm – more than three times higher than in Q1 2019. New leases accounted for the highest share of transactions (48%) – the majority of which were the pre-let agreements – followed by expansions (40%) and renegotiations (12%).
The largest office deals in Q1 2020 in Poznań included: a pre-let lease by Rockwool in Nowy Rynek D (6,000 sqm) and an expansion by GSK in Business Garden Poznań B6 (3,400 sqm).
“The absorption in Q1 amounted to 1,500 sqm, which was nearly half of the average for the previous four quarters. The decrease in absorption followed after a very successful previous year, when the amount of occupied space increased by a record 59,300 sqm,” says Bolesław Kołodziejczyk, PhD, Head of Research & Advisory, Cresa Poland.
Asking rents range between EUR 13.50–16.50/sqm/month in Poznań’s higher class office buildings, with lower class buildings commanding rents of EUR 11–13/sqm/month.
