According to “Office Occupier: Office Market in Łódź”, a report published by real estate advisory firm Cresa Poland, total take-up for Q1 2021 reached 2,300 sqm, down by as much as 93.5% on the same time last year. Renegotiations accounted for 65% of the leasing volume while new leases made up the remaining 35%.
At the end of the first quarter of 2021, Łódź’s office stock amounted to 578,500 sqm, up by 9.5% over the year. Although there was no new office space delivered to the Łódź market in the first quarter, office completions scheduled for the coming quarters include React and Monopolis M3.
In the January-March period, office take-up came to 2,300 sqm, down by as much as 93.5% on the same time last year. Renegotiations accounted for 65% of the leasing volume while new leases made up the remaining 35%.
The largest lease agreement in Q1 2021 was a renegotiation in Centrum Targowa 35 (a confidential tenant, 1,500 sqm), followed by a new lease signed by OncoArendi Therapeutics in the Dowborczyków 30/34 (500 sqm) and a new lease by Medicover in the Green Horizon B (300 sqm).
The city’s vacancy rate peaked at 16.9% at the end of March, up by 0.5 pp on the previous quarter and up by as much as 5.5 pp compared to the first three months last year. It was the highest rate for any key city in Poland.
“Of all the regional office markets in Poland, Łódź reported the highest vacancy rate at the end of the first quarter of 2021, having posted the strongest year-on-year increase,” says Iga Kraśniewska, Research Manager at Cresa Poland.
Office absorption turned negative in the first three months of 2021, amounting to -3,100 sqm, which represents more than a fourfold decrease on the same period last year.
Asking rents stand at EUR 10.5-15/sqm/month in Łódź’s city centre and at EUR 10-13,5/sqm/month outside city centre.
