According to “Office Occupier: Office Market in Katowice”, a report published by real estate advisory firm Cresa Poland, the leasing volume reached 39,100 sqm in the first half of 2021, up by 47% on the same period last year, accounting for 76.6% of the annual average for 2015-2020. Renegotiations accounted for 47% of all deals in H1, followed by new leases and expansions which made up 31% and 22% of that total, respectively.
“Katowice saw office take-up hit a record high in the second quarter of 2021. Despite this strong performance, the vacancy rate remained unchanged as deals comprised mainly renegotiations. Relocating tenants primarily sought a higher standard of office space and central locations. Their requirements were met by projects underway here,” says Elżbieta Golik, Senior Advisor, Office Department, Cresa Poland.
At the end of the first half of 2021, Katowice’s office stock amounted to 591,000 sqm, having expanded by 5.6% year-on-year. Only one office building was delivered to the Katowice market in the second quarter of 2021: 3QUBES, which was developed by a private investor and provides 1,500 sqm of office space. It was also this year’s first office completion in the city.
Total office take-up hit 39,100 sqm in the first half of 2021, up by 47% on the same period last year. The second quarter’s leasing volume amounted to 34,800 sqm. Renegotiations accounted for 52% of all deals in Q2, followed by new leases and expansions which made up 29% and 19% of that total, respectively.
The largest office transactions in H1 2021 in Katowice included a renegotiation and expansion of Rockwell Automation in A4 Business Park III (19,500 sqm), a new lease by UPC Polska in Global Office Park C (4,300 sqm) and a renegotiation by UPC Polska in Green Park I & II (4,200 sqm).
“Following subdued leasing activity in the first three months of this year, the second quarter ended with a record volume of transactions. The key contributor was the lease for office space in A4 Business Park III renegotiated by Rockwell Automation, which accounted for over half of the leasing volume,” says Iga Kraśniewska, Research Manager, Research & Advisory, Cresa Poland.
Absorption came to just 1,400 sqm in the six months to June 2021, but amounted to close to 2,000 sqm in the second quarter, which was largely due to the low volume of new supply and a small share of net take-up.
The city’s vacancy rate stood at 9.2% at the end of the second quarter of 2021, down by 0.1 pp on the previous quarter but up by 3.1 pp on the same period last year.
Asking rents in modern office buildings in Katowice range between EUR 9/sqm/month and EUR 14.5/sqm/month (in the city centre).
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
