A good year for the office market in Wrocław

Silver Tower Center
Silver Tower Center
Wrocław gained 160 000 sq. m of office space at the end of 2014. It is expected that the local office market may grow to the level of 690 000 sq. m in 2015.

Wrocław gained 160 000 sq. m of office space at the end of 2014. Therefore, the capital of Lower Silesia is currently an extremely dynamic local market. In 2014, the office market in Wrocław offered 595 000 sq. m. That amount situates the city on the third – after Warsaw and Cracow – place among office markets in Poland.

 

The activity of developers is very high – there are over 160 000 sq. m under construction. It is the greatest amount among the main cities, excluding Warsaw. If all plans envisaged by investors are to be realized on time, the office market in Wrocław may grow to the level of ca. 690 000 sq. m this year – says Katarzyna Krokosińska, Senior Consultant in Department for Lease of Office Area and Tenant Representation, JLL.

 

The year 2014 indicated 58 700 sq. m of office space and commission of 10 new offices for Wrocław, including i.a. Green Day (15 500 sq. m), Wrocław Business Park II B4 (10 800 sq. m) and Silver Tower Center (7 200 sq. m). The record letting of office area last year (95 400 sq. m) and maintaining high demand favor the activity of developers. The main recipients of the office investments are companies from the sector of services for business.

 

In 2014, the largest lease transactions in Wrocław were conducted by companies from that sector – that is HP GBC occupying 10 700 sq. m in Renoma and 16 400 sq. m in Dominikański and Nokia Network – occupying 14 000 sq. m in the West Gate office.

 

The high level of demand and balanced supply caused that the rate of unrented area was stable and totaled 10,5 per cent (10,8 per cent in 2013). The JLL company forecasts that the first half of 2015 should not bring substantial changes of that rate. The following months are going to show how the rate of occupied space is actually shaping, especially in older buildings. At the beginning of 2015, almost 40% of area in the projects under construction were secured by lease agreements. The new office investments in Wrocław were followed by decrease in rents by 5 per cent from 14,5-15,5 to 14-14,5 euro per one sq. m each month in the most prestigious buildings in the city .

 


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