Advisory firm JLL summarizes H1 2017 on the office market in Poland.
The office market in Poland witnessed further record-breaking results in H1 2017. Demand for office space hit an all-time high of 723,000 m² which consisted of excellent results recorded in Warsaw (391,400 m²) as well as other major office markets (331,400 m²).
“Total demand in H1 2017 among regional markets was a strong 331,400 m², which is 24% up on the same period last year. This result is fairly similar to the demand recorded for Warsaw, which further emphasizes the strength of the regional markets. It is also worth noting that an increasing number of companies are analyzing office locations outside the major metropolitan areas due to a more favorable labour market”, comments Łukasz Dziedzic, Consultant, Research and Consulting, JLL.
Outside Warsaw, demand recorded in H1 2017 was divided between Kraków, Wrocław and Tri-City which achieved 98,300 m², 91,700 m² and 73,800 m² respectively. In total, this constitutes 80% of the regional demand for office space.
Traditionally, large agreements were most often concluded by companies from the business services sector.
The biggest lease agreements in Poland in H1 2017
“Currently, the construction activity for all of Poland's major markets, including Warsaw, totals 1.8 million m². Major cities outside Warsaw account for over 1 million m² – an all-time record for developer activity on regional markets. That volume may seem high, but the high level of absorption of office space among tenants allows for cautious optimism in terms of leasing for upcoming office developments”, explains Karol Patynowski, Director of Regional Markets, JLL.
According to JLL, regional markets are likely to grow by an additional 328,000 m² in H2 2017. The greatest amounts of new supply, planned for the second half of the year, are to be found in Kraków, Tri-City and Łódź. Furthermore, approx. 155,000 m² will be delivered to the Warsaw market as well. However, completion of some developments may be postponed until 2018.
