News

In the regional markets more than twice as much office space is currently being built as in Warsaw, where the lowest number of office buildings has been built for years. According to Walter Herz experts, the demand in Poznan and Tricity is noteworthy as it has increased compared to previous years.
In the first half of the year the most popular among the tenants, apart from Warsaw, was the Krakow market, where agreements for 74 thousand. sq m. of offices were signed. Tricity also had a good six months, where 72 thousand sq. m. of space was contracted. This is almost twice as much as in the analogous period over the last four years. Generally, regional markets closed the half-year with a result lower by 20% in comparison to the last year, but the demand registered in Poznan is also noteworthy. Transactions concluded in the capital of Wielkopolska region brought a higher lease volume than those recorded at the same time in the last two years - informs Krzysztof Foks, senior analyst at Walter Herz.

In the first half of this year, about 510 thousand sq. m. of office space went to the tenants. In Warsaw, 250 thousand sq. m. of offices were rented out, one third less than the average for the last five years. The main regional markets accounted for a total of over 260 thousand square metres of contracted office space - according to the report of Walter Herz.

The pandemic's slowdown in decision-making processes affects both the leasing of space and the construction of new projects. In Q2 of this year, however, we have seen much more tenant activity than in the first months of 2021, especially in regional markets. Companies are already entering into discussions about the final demand for space. The owners of buildings are counting on a temporary fall in demand, but in the long run they assume its growth due to the expected transfer of business to Poland from other locations - says Bartłomiej Zagrodnik, managing partner/CEO at Walter Herz.

In Warsaw, in the first half of 2021, we saw a significant increase in supply. Walter Herz's data show that 10 buildings offering a total of 226,000 sq m of office space have been completed. As a result, the capital's office stock rose to a level of 6.1 million sq m.

Three tower projects - Warsaw Unit, Skyliner and Generation Park Y, situated in the area of Daszyńskiego Roundabout, have been completed. High-rise buildings have blended into the increasingly impressive skyline of the central part of Warsaw. Other office buildings delivered include Moje Miejsce II, Forest podium, X20, Centrum Praskie Koneser M and N, EQ2 and Baletowa Business Park.
There is 360 thousand sq.m. of office space under construction in Warsaw, almost one third of which is to be delivered to the market still this year. According to investors' announcements, six more buildings will be completed. Thanks to this, the new annual supply, according to Walter Herz, may reach its highest result in Warsaw since 2016. However, the number of new office developments has fallen drastically. The capital's market now has the fewest offices being built in years. This year, only the construction of The Bridge project has started.

In terms of expansion of resources, regions lead the way. In the regional markets more than twice as much office space is being built as in Warsaw, which indicates the restoration of positive moods. According to Walter Herz data, the largest amount of new offices is being constructed in Katowice (180 thousand. sq.m.), Wrocław (140 thousand. sq.m.), Kraków (115 thousand. sq.m.) and Trójmiasto (115 thousand. sq.m.). For the Tricity market, completion of the ongoing projects will coincide with crossing the threshold of 1 million sq.m. of office supply.

The investments carried out in the regions include High5ive, Podium Park, Wadowicka 3 and The Park in Kraków, Nowy Rynek building E and Andersia Silver in Poznań, Global Office Park, .KTW II and Craft in Katowice, as well as Quorum, Wielka 27 or Centrum Południe in Wrocław.

In the first half of this year 11 office buildings were completed in the regions. The office offer in the largest regional cities increased by a total of approximately 126 thousand sq.m. The highest level of new supply was recorded in Cracow (42,4 thousand. sq m), Poznań (35,9 thousand. sq m) and Trójmiasto (35 thousand. sq m).

The regional markets have a total stock of around 5.95 million sq m of modern office space. Buildings delivered in the first six months of 2021 included Poznań's Nowy Rynek D, Gdańsk's Palio Office Park A, Wrocław's Krakowska 35 office building and Kraków's Tertium Business Park B, Equal Business Park D, Ocean Office Park A and Aleja Pokoju 81 office buildings.

The new offer brought an increase in the vacancy rate in all regional markets to an average level of 13.4 per cent. The highest vacancy rate remains in Łódź - 18.3 per cent, while the lowest vacancy rate in the country is recorded in Tricity and Katowice - 9.2 per cent. In Warsaw, the entry of large buildings to the market boosted the support of the local market.

https://eurobuildcee.com/news/49575-popyt-rosnie-w-poznaniu-i-trojmiescie