Asking rates in the analyzed cities are still maintained at a stable level, however, the fiercer competition between tenants causes increased pressure on lowering effective rates even by 15-20% in relation to asking rates.
The year 2017 ended with the highest demand volume in the history. The subject of the lease contract were over 651 000 sq. m, including the highest number in Krakow (merely above 200 000 sq. m) and Wroclaw (nearly 170 000 sq. m).
The market with the total annual demand exceeding 100 000 sq. m is Tricity with the result of 113 000 sq. m. In the demand structure, over half of transactions were new and pre-let contracts whereas renegotiations constituted 27% of the signed contracts. The high receptivity of the market is reflected in the record-breaking net absorption, which reached nearly 430 000 sq. m in 2017.
In result, the regional cities also attract the increasing number of institutional investors whereas office buildings class A in regions are perceived as very attractive assets on the investment market. The total volume of investment transactions concluded in 2017 in the office sector in Poland amounted to 1.6 billion euro, nearly 70% of which were canvassings on the regional markets. The largest office transactions recorded in 2017 outside Warsaw are: takeover of Poznan Maraton office building by Union Investment, Przystanek mBank in Lodz by LCN Capital, Wroclaw Wratislavia Center by Austrian FLE GmbH, purchase of Katowice A4 Business Park III by Echo Poland Properties, or canvassing of Pilot Tower in Krakow by First Property Group.
Agata Holak, Senior Consultant in Market Research Department, Knight Frank
- 1
- 2