According to “Occupier economics: Office market in Wroclaw H1 2019”, a report published by real estate advisory firm Cresa, Wrocław’s office stock expanded by almost 6% year-on-year and currently amounts to 1.07 million sqm, with the cumulative annual growth rate for 2012-2018 nearing 15%.
“The office market lost some of its momentum in the first half of 2019 following its rapid growth in recent years. It witnessed few office completions in that period and a leasing volume well below the recent annual average. The vacancy rate however remains at a healthy low level, indicating a stable market in Wrocław. It contains among others one of the largest Poland’s concentration of computer game development companies and continues to attract strong IT occupier interest,” says Michał Grabikowski, Head of Tenant Representation in Cresa Poland Wrocław Office.
Office take-up amounted to 45,000 sqm in the first half of 2019, down by over 17% on the same period last year. The largest transactions in Wrocław included Schaeffler‘s 6,200 sqm lease at Nowy Targ, Softserve Poland lease of 4,400 sqm in CU Office B and the third place takes Atos’s renegotiations of 4,000 sqm at Wołowska Park.
Wrocław saw three office completions in the first half of 2019: Archicom’s City Forum: City One (11,200 sqm), Rodis Development’s Żmigrodzka 83 (2,300 sqm) and Spectrum Development’s STReet Point (3,000 sqm).
“Quarterly absorption turned negative on Wrocław’s office market for the first time in six years to -4,400 sqm, marking a temporary correction following weak supply. The first half of 2019 saw the volume of occupied office space increase by a total of 12,400 sqm. The development pipeline currently amounts to more than 200,000 sqm, most of which is expected to be delivered in late 2019 and early 2020,” says Bolesław Kołodziejczyk, PhD, Head of Research & Advisory, Cresa Poland.
At the end of June 2019, the city’s vacancy rate stood at 9.3%, down by 0.4 pp year-on-year. This ratio of vacant stock has remained relatively unchanged over the last two years, posting limited quarterly fluctuations. Office rents currently stand at EUR 12,5-14,5 sqm/month in upper class buildings, and EUR 11-12,5 sqm/month in lower class buildings.
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. Cresa Poland is headquartered in Warsaw, with regional offices in Wrocław, Tricity, Łódź and Krakow. To learn more, please visit: www.nmrk.pl
