According to “Office Occupier: Office Market in Tricity”, a report published by real estate advisory firm Cresa Poland, total leasing volume for the first three quarters of 2021 topped 93,110 sqm, accounting for 97% of the annual average for 2015-2020 and as much as 106% in comparison with last year.
“Leasing activity is gathering pace in Tricity, with demand coming predominantly from TFL, IT and BPO sectors, and very much focused on small-scale buildings in central locations in Gdansk and Gdynia. Office sublet availability is shrinking as employees are returning to offices and need to be properly accommodated. At the same time, many companies are adapting their offices to the changing requirements of employees and office redesign is frequently on the agenda during lease renegotiations,” says Michał Rafałowicz, Head for the Pomeranian Region, Cresa Poland.
Tricity’s office stock amounted to 923,500 sqm at the end of September 2021, having expanded by 2.8% year-on-year. Although no new office building was delivered to the market in the third quarter of 2021, total new supply reached close to 35,000 sqm in the year to date.
Tricity’s total leasing volume for the first three quarters of 2021 topped 93,110 sqm, accounting for 97% of the annual average for 2015-2020. Leasing activity in the third quarter of 2021 amounted to 20,900 sqm, down by almost 30% on the same period last year. Renegotiations accounted for 50% of that total, followed by new leases and expansions which made up 46% and 4%, respectively.
The largest transactions in Q1-Q3 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).
Office absorption for January-September 2021 climbed to 20,700 sqm, representing an over 27% increase on last year’s level. However, it turned negative in the third quarter, amounting to 13,500 sqm, an over sevenfold decrease on the same period in 2020.
At the end of the third quarter of 2021, the Tricity region’s vacancy rate stood at 10.7%, up by 1.5 pp quarter-on-quarter and up by 1.3 pp compared to where it was in the same period in 2020. At the end of September 2021, Tricity’s vacancy rate hit its highest in more than four years.
Asking rents in modern office buildings in Tricity range between EUR 10/sqm/month and EUR 15/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
