According to “Office Occupier: Office Market in Tricity”, a report published by real estate advisory firm Cresa Poland, Tricity’s leasing volume came to 37,900 sqm in the three months to March, up by 18% on the same period last year. It accounted for 39.5% of the annual average for 2015-2020.
“The Tricity office market remains driven by the business services sector, especially by IT, TFL and pharmaceutical industries. Data for the first quarter of this year shows that the vacancy rate rose over the same period last year. Observing the Tricity market and its development pipeline, we expect its vacancy rate may continue to rise going forward. It is also worth noting that new supply is up by close to 25,000 sqm year-on-year and Tricity’s total office stock is likely to surpass the one million sqm mark by the end of December,” says Michał Rafałowicz, Head for the Pomeranian Region, Cresa Poland.
Tricity’s office stock amounted to 913,600 sqm at the end of the first quarter of 2021, having expanded by 9% year-on-year. The first quarter of 2021 witnessed two office completions in Gdansk: Cavatina’s Palio A (16,500 sqm) and LPP Fashion Lab I of LPP (8,500 sqm). New supply totalled approximately 25,000 sqm, 66% above the average for the previous four quarters.
Tricity’s leasing volume came to 37,900 sqm in the three months to March, up by 18% on the same period last year. Renegotiations accounted for most of office take-up at 52%, followed by new leases (25%), owner-occupier deals (22%) and expansions (1%).
The largest transactions in Q1 2021 included: a renegotiation of 9,800 sqm by Intel in the Tryton Business House, occupation of 8,500 sqm by LPP in LPP Fashion Lab 1 (owner-occupier) and a lease renegotiation of 7,000 sqm in the Baltic Business House (a confidential tenant).
Between January and March 2021, absorption climbed to 26,600 sqm, representing more than fourfold increase on the same period in 2020.
The region’s vacancy rate stood at 9.1% at the end of the first quarter 2021, down by 0.4 pp on the previous quarter but up by 5 pp on the same time last year.
“Tricity is one of three surveyed office markets whose vacancy rate did not hit a double-digit figure and take-up was higher than a year earlier,” says Iga Kraśniewska, Research Manager, Research & Advisory, Cresa Poland.
Asking rents in modern office buildings in Tricity range between EUR 10/sqm/month and EUR 15.5/sqm/month (in the vicinity of Al. Grunwaldzka in Gdańsk).
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
