According to “Office Occupier: Office Market in Łódź”, a report published by real estate advisory firm Cresa Poland, total take-up for the first three quarters of 2021 reached 16,900 sqm and accounted for 27.7% of the annual average for 2015-2020.
At the end of September 2021, Łódź’s office stock totalled 583,000 sqm, having expanded by 4.1% year-on-year. Only one office building was delivered to the Łódź market in the third quarter of 2021: Domena’s Dowborczyków 30/34 (3,600 sqm).
Total leasing activity in the first three quarters of 2021 amounted to 16,900 sqm, representing a 72% decrease year-on-year. Office take-up in the third quarter alone hit 8,600 sqm, down by a mere 1% on the same period in 2020. Occupier activity was dominated by new leases (55%) and renegotiations (45%). No lease expansion has been reported in Łódź in the first three quarters of 2021, with office take-up accounting for less than 30% of the annual average for 2015-2020.
The largest lease agreement in Q1-Q3 2021 was a pre-let agreement by Chillispaces in the React office building (3,500 sqm), followed by a renegotiation by Idemia in Willa Kestenberga (1,800 sqm) and a new lease signed by Wella in Brama Miasta (1,600 sqm).
Total absorption for January-September 2021 came to 64 sqm. The third quarter ended with absorption at 11,600 sqm, representing an almost threefold increase on the same period last year.
The city’s vacancy rate stood at 16.8% at the end of the third quarter of 2021, down by 1.5 pp quarter-on-quarter but up by 2.5 pp compared to where it was a year ago.
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.
