Wrocław office market sets new highs
According to Cresa, Wrocław’s new office supply hit 36,633 sqm in Q1 2018, up by 104.2 percent on the same period last year. The real estate advisory firm’s latest report “Occupier Economics: Wrocław Office Market in Q1 2018” also reveals that office take-up amounted to 24,100 sqm while the vacancy rate stood at 8.3 percent, down 1.1 p.p. on the average observed over the last five years.
Office buildings delivered to the Wrocław market in Q1 2018 included: West Link (13,900 sqm, Echo Investment), BZ WBK Office Building (17,000 sqm, BZ WBK) and M5 (5,700 sqm, Kernov Properties).
“Wrocław keeps setting new records in terms of office supply and is strengthening its position among regional office markets. Its total office stock is expected to surpass the 1 million sqm mark this year. Wrocław’s vacancy rate and availability of new space are shrinking at a rapid pace, which is a confirmation of the city’s unwavering appeal to occupiers and bodes well for further growth of its office market,” said Michał Grabikowski, Head of Office Tenant Representation in Wrocław Office, Cresa Poland.
In Q1 2018, the volume of leasing activity amounted to more than 24,000 sqm, most of which or 90.3 percent was transacted under new leases. The biggest transactions were: the 10,000 sqm lease by Santander Consumer Bank S.A. at Business Garden 1, a 4,700 sqm lease at Skanska - Nowy Targ, OVH’s 2,350 sqm lease at Aquarius Business House I and Nokia’s 1,700 sqm renewal at Bema Plaza.
Absorption hit a record high of 44,100 sqm in the first three months of the year, up by 5.3 percent on the same period last year. Asking rents stood at €13-16/sqm/month in Class A office buildings in Wrocław’s city centre with the median at approximately €14.5, while rents in non-central locations were €12-14.5/sqm/month.