You are here:
  • The City
  •  Offices
  •  News
  •  Approximately 160,000 sqm of office space under construction in Wrocław

Approximately 160,000 sqm of office space under construction in Wrocław

Michał Grabikowski, Dyrektor wrocławskiego biura Cresa Polska.

According to “Occupier Economics: Office Market in Wrocław Q1-Q3 2019”, a report produced by real estate advisory firm Cresa, in the first three quarters of this year there was a marked decline in office development activity following a period of rapid growth last year, which saw nearly 147,000 sqm delivered. The market shows no sign of slowing down, though. Quite on the contrary, there is currently approximately 160,000 sqm under construction, a lot more than the average development pipeline of about 100,000 sqm in earlier years.

Wrocław’s office stock increased by more than 7% over the year to the current 1.11 million sqm.

“Wrocław continues to be seen as one of the best places to locate a business in Europe and as an innovation and high-tech hub, which translates into strong occupier interest and market stability despite high supply levels,” says Michał Grabikowski, Head of the Wrocław Office, Cresa Poland.

The leasing volume hit 65,500 sqm in the first three quarters of 2019, down by more than 28% on the same period last year. More than half of that total (53%) was transacted under new leases, followed by renegotiations (34%) and expansions (13%). The largest transactions in Wrocław were Schaeffler’s lease for 6,200 sqm in a Nowy Targ building, a 5,500 sqm lease renegotiation and expansion by QIAGEN Business Services in Sky Tower, and Softserve Poland’s lease for 4,400 sqm in CU Office B.

Four office schemes were delivered to the Wrocław market in Q3 2019: Skanska’s Nowy Targ in the city centre (19,400 sqm), and Cavatina’s Carbon Tower (17,600 sqm), SQ Business Centre (4,100 sqm) and K2 Office (2,400 sqm) in non-central locations.

“Quarterly absorption of office space climbed to 32,100 sqm in Q3 2019 and to 44,500 sqm since the beginning of the year, which however marked a twofold decrease compared to the same period last year. Office supply will remain high in the coming quarters, which against a backdrop of signed leases will strengthen quarterly absorption rates,” says Bolesław Kołodziejczyk, PhD, Head of Research & Advisory, Cresa Poland.

 

Wrocław’s vacancy rate stood at 10% at the end of Q3 2019, up by 0.3 pp over the past 12 months and up by 0.7 pp on the previous quarter. Rents range between EUR 12.5–14.5/sqm/month in higher grade office buildings, with lower grade buildings commanding EUR 11–12.5/sqm/month.

Średnia ocena

Related content

Komentarze

Log in to post comment.

In our website we use cookies. Learn more here. ×