According to “Occupier Economics: Office Market in Wrocław 2019”, a report prepared by real estate advisory firm Cresa, Wrocław’s office stock increased over the year by nearly 13% to reach 1.19 million sqm, more than a half is spread over office buildings providing more than 10,000 sqm each. The annual growth rate of Wrocław’s office stock averaged approximately 15% in the last seven years.
“Wrocław’s office market will continue to enjoy brisk expansion throughout 2020. The development pipeline scheduled for completion this year includes the second building of the City Forum complex (City 2) and the first building of the Centrum Południe complex, which are set to add more than 30,000 sqm to Wrocław’s office stock. The record low unemployment rate, meanwhile, impacts on the fit-out standard and quality of office offerings. As well as providing an adequate number of workstations in well-connected urban locations, today’s offices need to offer a user-friendly work environment tailored to the type of business and employees’ requirements,” says Michał Grabikowski, Head of the Wrocław Office, Cresa Poland.
In 2019, leasing activity hit 123,500 sqm, down by 22% on the previous year’s transaction volume and down by almost 10% compared to the annual average for 2015-2019. New leases accounted for 49% of the total take-up, followed by renegotiations and expansions. The strongest demand came from the pharmaceutical and biomedical sectors.
The largest transactions in Wrocław in 2019 included the GlobalLogic’s lease of 16,800 sqm (a new lease of 10,000 sqm and renegotiation of 6,800 sqm) in Wrocławski Park Biznesu – Strzegomska Park, Schaeffler’s lease of 6,200 sqm in a Nowy Targ building, a 5,500 sqm lease renegotiation and expansion by QIAGEN Business Services in Sky Tower, and Nokia’s lease renegotiation of 5,300 sqm in Bema Plaza.
The fourth quarter of 2019 witnessed two new office completions: Vastint‘s Business Garden Wrocław II, consisting of buildings 4, 5, 6-7, 8 and 9 (with a combined area of 76,800 sqm), and BUMA’s Cu Office B (10,600 sqm), another phase of the office complex in Jaworska Street.
The city’s vacancy rate currently stands at 12.5%, up by 3.4 pp over the last 12 months, its highest since 2013, when it was the same as today.
“In 2019, absorption totalled 94,700 sqm, down by nearly 30% on 2018’s level, but up by almost 10,000 sqm above the annual average for the last ten years,” says Bolesław Kołodziejczyk, PhD, Head of Research & Advisory, Cresa Poland.
Asking rents range between EUR 12.5–15/sqm/month in higher grade office buildings, with lower grade buildings commanding EUR 10–12.5/sqm/month.
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
