A SIGN OF PROMISING TIMES FOR THE OFFICE MARKET IN POLAND The Polish office space market situation at the end of Q3 2021 allows for an optimistic view of the sector in 2022. Demand remaining at a similar level to last year and the expected higher absorption of available space are conducive to improving the sector’s performance in the coming months. AXI IMMO analyses the Polish office market at the end of Q3 2021.
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he total stock of modern office space in Poland at the end of September 2021 is over 12.1m sqm. Warsaw remains the undisputed leader (6,159,900 sqm), with Kraków (1,604,500 sqm), Wrocław (1,242,600 sqm) and Tricity (923,500 sqm) traditionally leading the eight largest regional markets. In Q3 2021, developers delivered six new buildings with a total area of 86,900 sqm to the Polish office market. In the capital city, occupancy permits were given to Fabryka Norblina (Galwan and Plater buildings - 39 000 sqm) and Widok Towers (28 600 sqm). In the regions, the greatest developer activity was recorded in Katowice (Kolońska Park, 7,900 sqm, Dzida-Jazgar and Młyńska.6, 2,600 sqm, UBM Development), followed by the second phase of Ocean Office Park A (5,200 sqm, Cavatina) in Kraków. Since the beginning of the year, 439,600 sqm has been delivered to the Polish office market, split between 293,600 sqm (+26% year-on-year) in 12 projects in Warsaw and 146,000 sqm (-47% year-on-year) in 15 buildings in regional cities. New supply has slightly increased the space available for immediate lease. At the end of September 2021, the Polish office market had over 1.57m sqm. (+27% year-onyear) of vacancy, which accounted for approx. 12.3% of the total stock. The highest vacancy rates were recorded in Łódź (16.8%), Kraków (15.2%), and Wrocław (14.9%), while the lowest in Szczecin (5.8%), Katowice (10.1%) and 12
Winter 2021
Tricity (10.7%). The largest amount of vacant space is in Warsaw (767,800 sqm, approx. 12.5% of its total stock), Kraków (243,200 sqm) and Wrocław (184,760 sqm), while the smallest amount is in Szczecin (10,614 sqm) and Lublin (28,670 sqm). The average vacancy rate for the regional markets is 13.5%, which translates into 805,700 sqm of office space ready to let immediately. “In the next few months, we expect vacancy levels to decline across Poland. Firstly, many developers are postponing their decisions on the construction of new buildings until 2023-2024, and secondly, the situation will be regulated by the expected increased occupier’s activity. Most compa-
IN Q3 2021, DEVELOPERS DELIVERED SIX NEW BUILDINGS WITH A TOTAL AREA OF 86,900 SQM TO THE POLISH OFFICE MARKET The Warsaw Voice
