After Kraków, Wrocław is the second largest regional market in Poland as well as the third largest market nationwide. In the first six months of 2017, demand for office space in the capital city of Lower Silesia region was nearly 92,000 sqm. Such favourable results are a consequence of the high level of activity among tenants from the business services sector, says JLL summarizing H1 in Wroclaw.
“In H1 2017, they accounted for 60 percent of demand for office space in Wrocław. According to ABSL, the city is listed amongst the three largest locations in Poland for investors from business services sector. The 140 centres in Wrocław already employ 40,000 specialists – nearly 17 percent more than at the beginning of 2016. The city is also proving to be highly popular among new investors. This is illustrated by the market debuts of companies such as Epiq Systems, Mahle or TigerSpike,” commented Katarzyna Krokosińska, Associate Director, Head of Wrocław Office, JLL.
Demand
In H1 2017, the Wrocław office market recorded office demand totalling nearly 92,000 sqm. The city’s strong position is confirmed by large lease transactions that were concluded in the first six months of 2017. The two biggest deals were signed in the Business Garden complex, in both its completed sections and those still under construction. Companies that selected Business Garden are Credit Agricole (15,500 sqm) and Capgemini (13,100 sqm). The third biggest transaction was the pre-lease agreement signed by EY for 10,500 sqm in the Sagittarius office building.
“The great interest for office space in Wrocław stems from access to excellent human resources in the city, good co-operation between investors, city officials and the academic centres as well as a sufficient supply of modern office space,” added Katarzyna Krokosińska.
“By the end of H1 2017, total office stock in Wrocław totalled 873,100 sqm. Regardless of the fact that 2017 will see a lower amount of new completions compared to 2016’s record-breaking performance, the significant volume of space under construction (267,300 sqm) will guarantee the rapid development of the Wrocław office market. The biggest projects under construction include Business Garden (Vastint), Sagittarius Business House (Echo Investment), City Forum (Archicom) and Cu Office (Buma/Reino Partners). As for 2018, the total modern office stock in Wrocław will likely surpass 1 million sqm,” explained Łukasz Dziedzic, Consultant, Research and Consulting, JLL.
Vacancy rate and rents
By the end of H1 2017, the vacancy rate in Wrocław was 8.5 percent, 4pp lower than the previous year. The city’s highest prime rents per one sqm per month averaged out at between €13.9 and €14.5.
