You are here:

Wrocław office market will expand by only 50,000 sqm this year

Klaudiusz Pomykała, Head of the Wrocław Office, Cresa Poland

According to “Office Occupier: Office Market in Wrocław”, a report published by real estate advisory firm Cresa Poland, the leasing volume hit 21,500 sqm in the first quarter of 2021, down by 55% on the same time last year. New leases accounted for most of the leasing volume (67%), followed by renegotiations and expansions which made up 23% and 10%, respectively. The financial sector generated a large part of office take-up.

“Tenants continued to monitor the Wrocław office market throughout the first quarter of this year. This was reflected in the leasing volume which was almost the same as that recorded in the previous quarter. With new leases outnumbering regears, this is an indication of a trend reversal on the office leasing market. It is worth noting that the strongest demand in the last quarter came from the financial sector, which accounted for almost 40% of the total leasing volume. Market sentiment is expected to improve in the coming months, which will translate into more robust activity among tenants looking for the right office space,” says Klaudiusz Pomykała, Head of the Wrocław Office, Cresa Poland.

Wrocław saw its office stock expand by 3.4% year-on-year to 1.23 million sqm at the end of the first quarter of 2021. The first quarter of 2021 saw no office building added to the Wrocław market. Only 50,400 sqm is expected to be added to Wrocław’s office stock this year. “Weaker supply growth has pushed the average age of Wrocław’s office buildings up to 7.5 years,” says Iga Kraśniewska, Research Manager, Research & Advisory, Cresa Poland.

In the January-March period, office take-up hit 21,500 sqm, down by 55% on the same time last year. New leases accounted for most of the leasing volume (67%), followed by renegotiations and expansions which made up 23% and 10%, respectively. The largest transactions in Q1 2021 included: a new lease in the Carbon Tower (4,500 sqm, a confidential tenant from the financial sector), a renegotiation of 4,200 sqm in the Globis building by Unit4 and a new lease of 3,800 sqm in the City Forum: City 2 by Millennium Bank. Office absorption for the first three months of 2021 reached more than 9,600 sqm, representing a 29% decrease on the three months to March 2020.

The vacancy rate stood at 14.2% at the end of March 2021, down by 0.8 pp on the previous quarter but up by 2.1 pp compared to the same period last year. Asking rents range between EUR 10 /sqm/month outside city centre and EUR 15.75 /sqm/month in the city centre.

Średnia ocena

Related content

Komentarze

Log in to post comment.

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