The Polish Chamber of Commercial Property (PINK) released data regarding the office space market in Poland’s eight main regional markets (Krakow, Wroclaw, Tri-City, Katowice, Poznań, Łódź, Lublin, Szczecin) for the third quarter of 2024. The data comes from commercial real estate advisory firms (Axi Immo, BNP Paribas Real Estate, CBRE, Colliers, Cushman & Wakefield, JLL, Knight Frank, Newmark, Savills), and it summarizes the current inventory of modern office space, new buildings ready for occupancy, lease transaction sizes, and the quantity of unrented space.
At the end of the third quarter of 2024, total existing modern office space in the eight main regional markets amounted to 6,736,400 square meters. The largest office markets in Poland (after Warsaw) continued to be Krakow (1,820,500 square meters), Wroclaw (1,369,900 square meters), and the Tri-City area (1,067,000 square meters).
In the third quarter of 2024, buildings with a total area of 15,400 square meters were put into use. The largest completed project was the Waterfront II complex in Gdynia by Vastint, which consists of two office buildings (9,900 square meters and 5,500 square meters).
At the end of September 2024, about 1,165,200 square meters of office space were available for immediate lease in the eight main regional markets, which corresponds to a vacancy rate of 17.3% (a decrease of 0.4 percentage point quarter/quarter, and a level comparable to the same period in 2023). The highest vacancy rate was in Łódź – 21.1%, and the lowest in Szczecin – 6.8%.
The total volume of lease transactions recorded in the third quarter of 2024 was 223,900 square meters, which is a 54% increase compared to the previous quarter and a 13% increase compared to the same quarter in 2023. The most office space was leased in Krakow (85,300 square meters), Wroclaw (43,100 square meters), and the Tri-City area (40,200 square meters).
In the third quarter of 2024, renewals of current lease agreements constituted the largest share of transaction volume, amounting to 57%. New contracts accounted for 37%, expansions were 1%, and transactions for the needs of building owners were 4% of total leasing activity.
The largest transactions concluded in the third quarter of 2024 included a lease extension for 16,400 square meters by a confidential tenant from the banking sector in the Kapelanka 42 A building in Krakow and a lease extension for 10,500 square meters signed by State Street Bank in Gdańsk in the Alchemia II building. The third largest transaction was Rossmann’s rental of the entire space in the Park Biznesu Teofilów – C building for its own use, totaling 8,700 square meters.
Source: https://managerplus.pl/spadek-pustostanow-i-rekordowy-popyt-na-biura-w-regionach-raport-pink-za-iii-kwartal-2024
