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Office Market News

New tenant of Principio office building in Kraków

Unity Group, IT services provider, signed an agreement for the lease of over 800 sqm of office space at Principio office building in Kraków. The company will be relocated to its new office in Q1 2020. Eko-Park, owner of the premises, was represented by Knight Frank, international real estate consultancy.

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Report – office space in Poland 2019

Polish cities – office destination The office market in Poland is constantly growing, the total stock of modern office space in the H₁ 2019 exceeded 10 million sq m. Although the capital is still leading in terms of demand for office space, which in the first half of this year amounted to just over 400,000 sq m in this city, regional markets are also gaining in importance. Cracow and Wroclaw are office locations that can boast over 1 mln sq m of modern office space. Demand for offices in six main locations except Warsaw was 292,500 sq m. The demand for offices from investors site means that developers are very active throughout the country, which is reflected in the constantly growing supply not only in Warsaw but also on regional markets. In the H₁ 2019, more office space was delivered in Cracow, Wrocław and the Tri-City than on the capital market, in each of these cities the new supply amounted to over 90,000 sq m. Currently, the most space under construction is in Katowice (250,000 sq m), Wroclaw (210,000 sq m) and Cracow (190,000 sq m).  In Warsaw under construction is over 730,000 sq m of modern space. Warsaw Warsaw is the country’s largest business centre and the largest office market in Poland. The stock of modern office space is 5.5 mln sq m. The financial and insurance sectors, as well as companies from the IT sector, have had the largest share in demand for several years. In addition, the city has recently attracted large numbers of coworking companies that lease a significant part of space in newly emerging projects. The vacancy is at its lowest level since 2012 currently at 8.5%, with only 5.6% in the city centre. In 2020 can see over 400,000 sq m scheduled to be delivered. Many of these are office towers: The Warsaw Hub, The Unit, Skyliner and Varso (the tallest building in CEE). Cracow Cracow is the second largest office market in Poland. Over the past ten years, the city’s office space resources have increased almost four times, which has made this city the most dynamically developing regional market. Currently, Cracow is a leader among regions, where is the most office space under construction. Take up in 2017 and 2018 was at 150,000 sq m p.a. This year can be better because in H₁ 2019 demand exceeded 135,000 sq m. 60% of modern office space in this city Almost 60% of modern office space in this city is occupied by the modern business services sector, employing 70,000 employees. Wroclaw Currently, Wroclaw is the third largest office market in Poland and offers over 10% of the office space available nationwide. The total stock of office space in this city exceeded 1,07 mln sq m. Wrocław is in the third position in terms of the number of shared services centres, right after Warsaw and Cracow. Tri-City The Tri-city is the fourth largest office market in Poland, right after Warsaw, Cracow and Wroclaw. Tri-city will break 1 mln sq m of modern office space within this year. Almost 100,000 sq m were added to the market in the last 18 months. Tri-city for office location is very often chosen by companies from the SSC / BPO and IT industries. The market largely owes its position to Scandinavian companies, which invest intensively here, including due to convenient air connections with the Tri-City. The city is the 2nd most attractive destination for relocation in Poland. Katowice Katowice is in the fifth position on the office market in Poland. The total stock of nearly 530,000 sq m. In 2017 and 2018, demand amounted to over 30,000 sq m. The year 2019 promises to be record-breaking because the same number of sq m has already been rented in the first half of the year. The vacancy rate has been decreasing since 2016, currently at 7.5%. Poznan  Poznan ranks sixth among office markets in Poland, after Warsaw, CraCow, Wroclaw, the Tri-City and Katowice. Unfortunately, tenants in the last two years have been struggling with the low availability of modern office space due to the limited supply of new projects. This year situation will change, as more than 90,000 sq m are expected to hit the market. Thanks to investors’ activities, Poznan has become a modern centre of services and advanced production. Lodz Lodz is becoming one of the most dynamically developing major regional markets in Poland. By the end of 2022, modern office space in the city may increase by almost 50%. Lodz stands out from other Polish cities with many factories and tenements, which are increasingly adapted to modern and unconventional office space in the city. In such facilities in the first half of 2019, as much as 20% of the space delivered to the market was created in this way.   Source: AXIIMMO

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Polish office buildings worth billions

The value of investment transactions concluded on office markets outside Warsaw has already exceeded 1 billion EUR, a record for Poland's regional markets.

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CitySpace expands its network by three new offices

October was an extremely productive month for CitySpace, a Polish company providing flexible serviced offices. The provider launched two new offices in Warsaw and expanded the space occupied in the O3 Business Campus complex in Kraków. As a result, CitySpace increased its managed space by 40% and launched 650 workplaces over the last weeks.

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Savills: high commercial property investment activity in CEE

Commercial property investment activity exceeded €8bn across Poland, the Czech Republic, Slovakia, Hungary and Romania in the first three quarters of 2019, 54% above the five year average, according to Savills latest research report.

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Globalworth acquires Chmielna 89 and Tischnera Office

The soon to be completed Chmielna 89 office building in Warsaw and Tischnera Office in Kraków are to be added to the portfolio of Globalworth, the leading office investor in Central and Eastern Europe. The office projects, both developed by Cavatina Holding S.A., will offer a total of approx. 60,000 sqm of leasable space.

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Cushman & Wakefield appointed to manage Astoria Premium Offices

Global real estate services firm Cushman & Wakefield has been managing Astoria Premium Offices in Warsaw since the beginning of September 2019. Astoria Premium Offices is a building offering nearly 18,500 sq m of office space and approximately 1,000 sq m of retail space in the very heart of Warsaw. It is located at 2 Przeskok Street, in the Śródmieście district. The building has received the LEED certificate with a Platinum rating. “The Astoria Premium Offices building boasts a sophisticated design with all the advantages of an unrivalled downtown location and one of the most desirable and iconic addresses in the centre of Warsaw. Its tenants include reputable Polish and international companies,” said Grzegorz Dyląg, Head of Business Space, Asset Services, Cushman & Wakefield.   Source: Cushman & Wakefield

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Equiniti chooses Krakow

Equiniti opens its first office in Poland. The high-tech company has just moved to Cavatina Holding’s Equal Business Park C in Krakow where it took up more than 2,350 sq m of office space. The company will create approximately 150 jobs in its new office. Equiniti was supported in its entry into the Polish market by Savills, which advised the tenant on the choice of the location.

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