The first half of 2015 saw high levels of activity within the Polish commercial property market and the outlook for 2015 remains positive with annual figures likely to be better than in 2014 given the volume of transactions closing. More detailed information on the office, retail and industrial sectors is included in the latest report “Marketbeat Poland Autumn 2015” prepared by global real estate services firm Cushman & Wakefield. It also presents an overview of the commercial investment market in Poland and an outlook for the Polish commercial property market.
Key report findings:
Commercial investment market:
- Investment volume totalled €794 mln in 21 transaction in H1 2015
- US investors accounted for a substantial share of the deal volume
- Investor focus is increasingly shifting to regional cities which in H1 2015 outperformed Warsaw for the first time ever with trading volumes rising 30% on the figure recorded in H1 2014
Office sector:
- Supply outstrips absorption on the Warsaw market
- Prime rents down in Warsaw’s best office buildings
- Much stronger leasing activity on regional markets
Retail sector:
- More than 67% of new space delivered in large cities above 200,000 inhabitants
- Rapid growth of the convenience stores and space upgrading in existing hypermarkets
- Retail park development picking up rapidly, mainly in smaller cities with 15,000 to 30,000 inhabitants
Industrial sector:
- 452,000 m² of new industrial space came onto the Polish market in H1 2015
- Vacancy rate at 6.2% an all time low
- Increasing industrial space development in the regions on the back of improvements in transport infrastructure
Key report figures:
- 66% – modern office stock in Poland’s six regional cities accounts for 66% of Warsaw’s total office space
- Around 616,000 m² – estimated retail supply at year-end 2015 (a 30% rise on 2014’s total
- 33% more industrial space delivered in H1 2015 (compared with H1 2014)
Source: Cushman & Wakefield
