According to Cresa Poland report “Occupier Economics: Office Market in Poznań 2019” office stock in this city amounted to just under 565,000 sqm at the end of 2019, having posted an almost 18% increase year-on-year. The city is the sixth largest office market in Poland.
The highest concentration of development activity is in the city centre and along the city’s main arteries: Grunwaldzka and Jana Pawła II streets. Projects scheduled for delivery in 2020 and 2021 include Giant Office in Głogowska Street, and Nowy Rynek D, another phase of Skanska’s large-scale investment.
Poznań’s office market expanded by nearly 86,000 sqm in 2019. Last year’s two largest office completions were Vastint’s Business Garden B6-B9 (46,100 sqm) and Skanska’s Nowy Rynek A and B (30,300 sqm).
Leasing activity hit almost 41,000 sqm in 2019, down by 41% on 2018 and 33% lower than the annual average for 2015-2019. The largest office deals in 2019 in Poznań included a new lease in Business Garden Poznań (3,400 sqm), a renegotiation with expansion in Andersia Business Center (3,000 sqm) and a lease renegotiation in Centrum Biurowe Globis (2,800 sqm).
In 2019, absorption topped 59,000 sqm, representing a significant increase on 2018’s level and demonstrating a growth in demand for office space in the last 12 months.
The city’s vacancy rate stood at 10.8% at the end of Q4 2019, up 3.5 pp compared to where it was a year earlier.
“This growth in unoccupied space was driven by the delivery of two large office complexes, which continue to offer substantial offices to let. With pending lease negotiations, the vacancy rate is, however, expected to edge down in the near future,” says Bolesław Kołodziejczyk, PhD, Head of Research & Advisory, Cresa Poland.
Rental rates range between EUR 13.50–15.50/sqm/month in Poznań’s higher class office buildings, with lower class buildings commanding rents of EUR 11–13/sqm/month.
