According to “Office Occupier: Office Market in Wrocław”, a report published by real estate advisory firm Cresa Poland, total leasing volume for the first three quarters of 2021 topped 74,400 sqm, accounting for 55% of the annual average for 2015-2020.
“Leasing activity is gradually picking up in Wrocław, with tenants looking for solutions to enable a complete return to offices. Large companies are focused on offices that would not only provide a workplace, but would also foster social bonding, community building and a feeling of belonging. Landlords will also go the extra mile to meet the expectations of organisations requiring smaller comfortable units. They are allocating some space in many office buildings for serviced offices that provide fully furnished and consistently designed office space. Additionally, such offices are available for immediate occupancy and on short-term leases. Despite increasing vacancy rates, headline rents remain unchanged, but landlords are showing considerable flexibility with regard to other lease conditions,” says Anna Domańska, Advisor, Cresa Polska.
At the end of the third quarter of 2021, Wrocław’s office stock amounted to 1,24 million sqm, posting a 0.6% increase year-on-year. No office project was completed in the third quarter of 2021. This year’s new office supply in Wrocław is likely to fall to its lowest on record.
Office take-up for January-September 2021 reached 74,400 sqm, down by 31% year-on-year. The third quarter ended with 28,500 sqm transacted, which represented a 36% decrease on the same period last year. New leases accounted for 65% of the leasing volume while renegotiations and expansions made up 19% and 16% of that total, respectively.
The largest transactions in Q1-Q3 2021 included: a prelet of 12,300 sqm in the MidPoint 71 building by 3M Service Center EMEA, a new lease in the Carbon Tower by Idea Getin Leasing (4,500 sqm), and a new lease by Impel in Promenady Business Park (4,400 sqm).
Office absorption for January-September 2021 hit 10,200 sqm, down by 65% on the same period last year. It turned negative in the third quarter of 2021, coming to just under 10,000 sqm.
The city’s vacancy rate stood at 14.9% at the end of September 2021, up by 0.8 pp quarter-on-quarter and 0.6 pp year-on-year.
Asking rents range between EUR 10 /sqm/month outside city centre and EUR 16 /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
