According to the latest “Occupier Economics: Office Market in Łódź in 2019” report, the city’s total office stock stood at 528,300 sqm at the end of 2019, up by nearly 13% year-on-year. Cresa experts are highlighting that Łódź is a very attractive location to office developers.
Total leasing activity hit more than 56,000 sqm in 2019, which was above the level recorded in 2018 but down by 7% on the annual average for 2015-2019. The largest transactions in Łódź in 2019 included 5,000 sqm leased by New Work in Hi Piotrkowska 155; 4,500 sqm lease renegotiation by mBank at Park Biznesu Teofilów C, and two leases signed by Nordea Operations Centre (3,300 sqm and 3,250 sqm at Red Tower and Cross Point, respectively).
The city’s vacancy rate was up by 2.5 pp on 2018 at 11.2% at the end of last year.
“Absorption amounted to 40,900 sqm in Łódź in 2019, representing an almost 20% increase on 2018’s level. 2019 was a much better year in terms of new office supply which was up by more than 79% on the previous year. The city is also valued by tenants, particularly from the IT and shared services sectors, with office spaces steadily filling up despite high supply levels,” says Bolesław Kołodziejczyk, PhD, Head of Research & Advisory, Cresa Poland.
Asking rents stand at EUR 8.5–10.5/sqm/month in Łódź’s lower class office buildings and at EUR 10.5–14/sqm/month in higher grade buildings.
