Wrocław office market stock exceeds one million sqm mark
According to new data from JLL, by the end of H1 2018, total office stock in Wrocław exceeded one million sqm. In the first half of the year, tenants signed deals for more than 58,000 sqm while the market gained another 100,000 sqm of space.
“Wrocław is one of the fastest growing office markets in Poland - it is confirmed by the high level of investor interest in our city. Excellent results in various sectors of the city’s economy has allowed us to continue adopting our development strategy. Our long-term plans include further improving Wrocław's infrastructure, attracting international business services and IT companies as well as creating optimal conditions for start-ups and SME sector. Today, Wrocław is a place in which companies offering advanced services, R&D centres and creative small businesses are able to both operate and thrive. As a result, we are witness to the creation of increasingly interesting, specialized work places that are an ideal option for the professional development of ambitious residents and graduates in Wrocław,” comments Adam Grehl, Vice President of Wrocław.
“By the end of H1 2018, total office stock in Wrocław exceeded one million sqm. Currently, up to 240,000 sqm of office space remains under construction and by the end of the year the market may grow by a further 150,000 sqm - including new supply from H1 2018. This is great news for tenants seeking large volumes of state-of-the-art office space located on one of the most attractive business markets in Poland,” says Katarzyna Krokosińska, Head of Wrocław Office, JLL.
Data by JLL indicates that demand for modern office space in H1 totalled 58,400 sqm. This resulted from numerous lease agreements, including deals signed by BZ WBK for 17,000 sqm or Santander Consumer Bank for 10,000 sqm in the Business Garden Wrocław complex.
“Such high office demand in Wrocław is driven in large part by companies from the business services sector. According to ABSL, business service centers employ more than 45,000 people in the city, which places Wrocław in third place for the most sought-after locations for investments from this industry. Naturally, such an impressive result translates into the lion's share of the sector in the occupied office space in the city. According to our data, this share is about 49 percent,” explains Katarzyna Krokosińska.
By the end of H1 2018, the vacancy rate in Wrocław was around 9.7 percent. Prime headline rents are between €13.7 and 14.5 sqm/month.