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Wrocław office market tops 1 million sqm

The Wrocław office market is enjoying an unprecedented boom, says real estate advisory firm Cresa Poland in its report “Occupier Economics: Office Market in Wrocław in H1 2018”.

In mid-2018, Wrocław’s office stock reached 1.01 million sqm, which represented a 16 pct increase on the same period last year. Eight new office buildings providing a total of 104,000 sqm were delivered to the market between January and June 2018. The largest office completions included Echo Investment’s 24,900 sqm Sagittarius, which was delivered in Q2, followed BZ WBK’s 17,000 sqm office building and Echo Investment’s 13,900 sqm West Link.

Office take-up hit 36,000 sqm in Q2 2108, but the overall transaction volume for the first half of the year amounted to 60,000 sqm. New leases accounted for 80 pct of the leasing activity, one of the highest rates in Poland, which is evidence of the Wrocław market’s rapid growth. The largest transactions were the 17,000 sqm owner-occupier deal by BZ WBK (now Santander Bank Polska) and the 10,000 sqm lease signed by Santander Consumer Bank S.A. at Business Garden I. The Santander Group accounted for nearly half of the city’s leasing volume. Other major transactions included a confidential tenant’s 4,700 sqm lease at the Nowy Targ office building and Eltron’s 4,100 sqm owner-occupier deal at Eltron HQ. 

Absorption in H1 2018 amounted to 91,000 sqm, representing a 65 pct rise on the same period last year, which was largely attributed to the Santander Group’s strong activity. Wrocław’s vacancy rate stood at 9.7 pct at the end of Q2 2018, up by 1.3 p.p. compared to last year and up by 0.4 pct on the average for the last three years.

Asking rents remained relatively flat in Q2 2018, standing at EUR 13-16/sqm/month in Class A office buildings in Wrocław’s city centre with the median at EUR 14.5, and at EUR 12-14.5/sqm/month in other locations.

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