Developer activity on the office market in Wroclaw in 2024 remained at a limited level. Tenants signed lease agreements for 146,000 sqm, which was the second-highest result among regional markets. A slightly lower demand resulted in an increase in the vacancy rate to 19.3%.
The resources of the third-largest – after Warsaw and Krakow – office market in Wroclaw at the end of 2024 amounted to 1.38 million sqm.
Developers still undertook a cautious approach to starting new projects. In 2024, only 38,000 sqm was handed over for use, and only 35,000 sqm is under construction.
“Demand for office space in Wroclaw remained relatively stable. Although last year’s result was 12% lower than that achieved in 2023, it should be noted that the second-highest level of leasing in the history of the Wroclaw market was recorded then. In 2024, tenants signed lease agreements for 146,000 sqm, which constituted 21% of the total transaction volume recorded outside Warsaw,” – said Anna Patrzyk-Sperzyńska, Associate Director at Knight Frank.
In the transaction structure, as in most surveyed cities, renegotiations predominated, accounting for 57%. Companies continue to be sensitive to the costs associated with relocation, such as moving expenses and adapting the space to the tenant’s needs. New contracts accounted for 36% of the transaction volume, and expansion only 2%.
“The weakening demand in 2024 resulted in maintaining a high vacancy rate in Wroclaw. At the end of the fourth quarter of 2024, it was 19.3%, which was associated with an increase of 1.1 pp. compared to the same period in 2023. However, compared to the previous quarter, there was a decrease of 0.4 pp., which may signal the beginning of a downward trend, especially considering the small area under construction,” – added Michał Kusy, Junior Consultant, Research at Knight Frank.
The asking rents in Wroclaw at the end of 2024 remained stable, ranging from 10.00 to 16.00 EUR/sqm/month, but rents for the best areas in newly built buildings may exceed this level. Service charges also remained stable, falling within the range of 16.00 to 31.00 PLN/sqm/month.
Source: https://ceo.com.pl/wroclawski-rynek-biurowy-ograniczona-aktywnosc-deweloperow-i-wzrost-pustostanow-24303
