According to “Office Occupier: Office Market in Katowice”, a report published by real estate advisory firm Cresa Poland, the leasing volume reached 4,300 sqm in the first quarter of 2021, down by as much as 79% on the same period last year. New leases accounted for 51% of all deals, followed by expansions and renegotiations which made up 43% and 6% of the leasing volume, respectively.
“The Katowice office market continues to grow and already contains close to 590,000 sqm of office space. High supply levels and weaker demand are pushing its vacancy rate further up. The past quarter saw subdued occupier activity, with tenants postponing relocation decisions or giving up on this option altogether. Landlords are, however, exhibiting more flexibility in renegotiations. Having this in mind, we recommend to our clients that they no longer defer decision-making, because with the market being more tenant-friendly they will be able to secure very favourable lease conditions,” says Elżbieta Golik, Senior Advisor, Office Department, Cresa Poland.
At the end of the first quarter of 2021, Katowice’s office stock amounted to 584,500 sqm, having expanded by 6.7% year-on-year. Although no new office building was delivered to the Katowice market in the January-March period, projects underway include .KTW II and the towers of the Global Office Park.
Total office take-up came to 4,300 sqm in the first quarter of 2021, down by as much as 79% on the same period last year. New leases accounted for 51% of all deals, followed by expansions and renegotiations which made up 43% and 6% of the leasing volume, respectively.
“Office take-up hit its lowest level in the three months to March since the fourth quarter of 2018, which saw just under 3,800 sqm transacted,” says Iga Kraśniewska, Research Manager, Research & Advisory, Cresa Poland.
The largest office transactions in Q1 2021 in Katowice included an expansion of Keywords Studios in Green Park I & II (1,900 sqm), a new lease by Ista Shared Services in the Supersam building (1,100 sqm) and a new lease by a confidential tenant in the Brynów Center (600 sqm).
The first quarter of 2021 ended with negative absorption at -600 sqm, indicating that the volume of occupied office space slightly decreased in comparison to the previous quarter.
The city’s vacancy rate stood at 9.3% at the end of March, up by 0.1 pp on the previous quarter and by 3.1 pp compared to where it was in the first quarter last year.
Asking rents in modern office buildings in Katowice range between EUR 9/sqm/month and EUR 15/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
