According to “Office Occupier: Office Market in Łódź”, a report published by real estate advisory firm Cresa Poland, total take-up for 2020 reached 62,700 sqm, marking a 12% increase from the previous year. It accounted for 101.6% of the annual average for 2015-2019. Last year new agreements dominated the transaction volume at 60%, followed by renegotiations (25%) and expansions (15%). Modern office space stock in Łódź grew by 9.5% in 2020 and totalled 578,500 sqm at the end of December.
Total take-up for 2020 reached 62,700 sqm, marking a 12% increase from the previous year. The first quarter was the best with 35,900 sqm transacted while in the fourth quarter a mere 2,900 sqm was leased. Last year new agreements dominated the transaction volume at 60%, followed by renegotiations (25%) and expansions (15%). In Q4, new leases accounted for 82% of the leasing activity, followed by renegotiations and expansions which made up 16% and 2% of all deals, respectively.
The largest lease agreement in 2020 was a pre-lease of 16,300 sqm in Fuzja signed by Fujitsu Technology Solutions, followed by two renewals with expansion: at University Business Park B by Barry Callebaut (6,000 sqm) and at Sterlinga Business Center (5,700 sqm, confidential tenant).
Modern office space stock in Łódź grew by 9.5% in 2020 and totalled 578,500 sqm at the end of December. The last quarter of 2020 saw the completion of Hi Piotrkowska 155 (21,000 sqm) by the Master Management Group. Last year’s new supply totalled 51,500 sqm.
“New office buildings are expected to be delivered in Łódź in the coming quarters. They include Echo Investment’s React (15,000 sqm) and another phase of Virako’s Monopolis – M3 (8,400 sqm). In addition, in late 2020, Cavatina commenced construction work on its mixed-use project at the site of Widzewska Manufaktura which will involve revitalization of existing historic buildings,” says Iga Kraśniewska, Research Manager at Cresa Poland.
The vacancy rate stood at 16.4% in the three months to December 2020, up by 5.2 pp on the same time in 2019 and up by 2.1 pp on the previous quarter.
Full-year absorption hit 16,100 sqm, down by 60% compared with 2019. In the fourth quarter of 2020 alone, absorption climbed to 6,600 sqm. This result was largely due to upward movements in vacancy rates since the beginning of the year.
Asking rents stand at EUR 11-15/sqm/month in Łódź’s city centre and at EUR 10-13,5/sqm/month outside city centre.
