According to “Office Occupier: Office Market in Łódź”, a report published by real estate advisory firm Cresa Poland, total take-up for H1 2021 reached 8,300 sqm, down by 84% on the same period last year, and accounted for 13.7% of the annual average for 2015-2020. New leases in H1 accounted for 66% of the leasing volume, followed by renegotiations (34%).
At the end of the first half of 2021, Łódź’s office stock reached 579,400 sqm, up by 5.7% over the year. Although the second quarter saw no office buildings delivered to the market, the development pipeline included such projects as React and Monopolis M3.
Office take-up came to 8,300 sqm in the first half of the year, down by 84% on the same period last year. The second quarter alone saw 6,000 sqm transacted, which represented a 60% decrease year-on-year. New leases in Q2 accounted for 79% of the leasing volume, followed by renegotiations (21%).
The largest lease agreement in H1 2021 was a pre-let agreement by Chillispaces in the React office building (3,500 sqm), followed by a renegotiation in Centrum Targowa 35 (a confidential tenant, 1,500 sqm) and a renegotiation in the Alexander Plaza by ABB (1,000 sqm).
“The average size of a single transaction in Łódź was just 770 sqm in the first half of 2021, with the median at 390 sqm. The total leasing volume in the past six months was the lowest in the history of this market,” says Iga Kraśniewska, Research Manager at Cresa Poland.
The city’s vacancy rate continued its upward trend and stood at 18.3% at the end of June 2021, representing an increase of 1.4 pp quarter-on-quarter and of 5.1 pp year-on-year.
Office absorption turned negative in the first half of the year, amounting to -11,600 sqm, which represents a fourfold decrease on the same period last year. The second quarter alone ended with absorption at -8,500 sqm, the lowest figure in the history of the Łódź market.
Asking rents stand at EUR 10.5-14.5/sqm/month in Łódź’s city centre and at EUR 10-13,5/sqm/month outside city centre.
