According to “Office Occupier: Office Market in Tricity”, a report published by real estate advisory firm Cresa Poland, Tricity’s office market has been growing at an average annual rate of 10% for the last five years. If all the projects underway are delivered on time, Tricity’s office stock will reach approx. 1 million sqm in 2021. Office take-up hit 87,700 sqm in 2020, down by 13.2% year-on-year, or 84.1% of the annual average for 2015-2019. Last year new leases dominated the transaction volume at 46%, followed by renegotiations (37%), expansions (15%) and owner-occupation (2%).
“The last quarter of 2020 witnessed increased caution on the Tricity office market. Many tenants are putting off leasing decisions while waiting for a significant market recovery. They are also aware that hybrid working model has proved relatively successful and there is office space available for subleasing. We are, however, seeing an uptick in new office enquiries from companies already present in Pomerania and planning to enter this market. This interest is likely to translate into new deals in the second half of 2021,” says Michał Rafałowicz, Head for the Pomeranian Region, Cresa Poland.
Office take-up hit 87,700 sqm in 2020, down by 13.2% year-on-year, or 84% of the annual average for 2015-2019. Last year new leases dominated the transaction volume at 46%, followed by renegotiations (37%), expansions (15%) and owner-occupation (2%). The fourth quarter alone saw more than 7,300 sqm transacted. New leases accounted for 68% of the leasing activity, followed by renegotiations and expansions which made up 31% and 1%, respectively.
The largest transactions in 2020 included: a new lease agreement of 12,100 sqm in Alchemia IV – Neon (confidential tenant), a lease renegotiation of 7,000 sqm by confidential tenant in Olivia Business Centre and a lease renegotiation of 6,400 sqm by Nordea in Tensor Z.
Tricity’s office stock reached 888,600 sqm at the end of December 2020, representing a 6% increase year-on-year. Although the fourth quarter of 2020 saw no office completions, Tricity’s development pipeline comprises more than 100,000 sqm scheduled for delivery across such projects as 3T Office Park, Palio A, and FORMAT.
“Tricity’s office market has been growing at an average annual rate of 10% for the last five years. If all the projects underway are delivered on time, Tricity’s office stock will reach approx. 1 million sqm in 2021. The new build is taking place in the vicinity of Młode Miasto Gdańsk, Grunwaldzka Avenue, the airport and in Gdynia,” says Iga Kraśniewska, Research Manager, Research & Advisory, Cresa Poland.
Office absorption totalled 16,700 sqm in 2020 – a 75% decrease compared to the previous year – and a mere 400 sqm in the fourth quarter alone. This was mainly due to more than a twofold increase in vacancies compared to 2019.
At the end of Q4 2020, the Tricity region’s vacancy rate stood at 9.5%, equating to 84,300 sqm of unoccupied office space, up by 5.6 pp year-on-year and by 0.1 pp quarter-on-quarter.
Asking rents in modern office buildings in Tricity range between EUR 11/sqm/month and EUR 15/sqm/month (in the vicinity of Al. Grunwaldzka).
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. To learn more, please visit: www.nmrk.pl
