According to “Office Occupier: Office Market in Krakow”, a report published by real estate advisory firm Cresa Poland, total leasing volume for the first three quarters of 2021 amounted to 104,800 sqm, accounting for 53.5% of the annual average for 2015-2020. Transactions in Krakow accounted for as much as 28% of the leasing volume recorded on regional markets.
Krakow’s total office stock reached 1.6 million sqm in the nine months to September 2021, which represented an approximately 5.5% increase year-on-year. Krakow saw only one office project delivered in the July-September period: Cavatina’s Ocean Office Park A2 (5,200 sqm).
Total leasing activity for January-September 2021 amounted to 104,800 sqm, down by 46% on the same period last year. In the third quarter alone, gross take-up came to close to 30,700 sqm, up by 24% year-on-year. New leases accounted for 84% of the transaction volume, while renegotiations and expansions made up 8% each. Of all the regional city markets, Krakow continues to attract the strongest occupier interest, but its year-to-date take-up accounts for 53.5% of the annual average for 2015-2020.
The largest transactions in Q1-Q3 2021 included: a renegotiation of 15,600 sqm in the Kapelanka 42a building (by a confidential tenant), a renegotiation of 12,800 sqm in Centrum Biurowe Kazimierz (by a confidential tenant) and a renegotiation of 11,300 sqm in Galileo, Newton and Edison buildings (by a confidential tenant).
Absorption for the first three quarters of 2021 totalled 21,800 sqm, down by 68% compared to the same time in 2020.
At the end of September 2021, the city’s vacancy rate stood at 15.2%, down by 0.3 pp on the previous quarter but up by 2.8 pp compared to the same period in 2020.
Rents remain stable – from EUR 10 sqm/month in the southern parts of the city to EUR 15,5 sqm/month in central locations.
