The resources of the office market in Poland are gradually increasing year by year, and Wrocław has long been on the podium in this respect, right behind Warsaw and Krakow. At the end of 2021, Wrocław's office stock amounted to over 1.25 million sq m. In Warsaw and Krakow it is 6.15 million sq m, respectively. and 1.6 million sq m
The activity of developers in Wrocław is definitely lower than in previous years. Only 21.8 thousand entered the market. sq m of new space, in two projects - Krakowska 35 with an area of 11.8 thousand. sq m and Wrocławski Park Biznesu - Nowa Strzegomska with an area of 10 thousand. sq m In order to show the scale of the phenomenon, we can cite the historically highest and lowest supply indicators that took place in Wrocław. The highest so far was recorded in 2019, when 147,000 were placed on the market. sq m, and the lowest in 2011 - the new supply was then 1,150 sq m. In the coming years, however, we can expect a significant revival on the part of developers - over 178,000 sq m is under construction. sq m office space. The largest investments still under construction are MidPoint71, Centrum Południe III,
Compared to other regional cities (Kraków, Tri-City, Katowice, Poznań, Łódź), tenants on the Wrocław office market remained relatively active in 2021. In the fourth quarter of 2021, lease agreements were signed for over 61 thousand. sq m, which was the best result among regional cities. However, taking into account the annual volume of transactions, tenants in Wrocław have leased over 135,000. sq m space, i.e. in 2021, the demand for office space remained at a similar level as in the previous year.
The structure of signed lease agreements was dominated by new agreements, which constituted 48 percent. total demand in 2021, of which pre-let contracts account for 24% and renegotiations for 41%. Expansions amounted to just over 15 thousand. sq m, i.e. 11 percent all transactions. The return of pre-let contracts to the lease structure indicates that the market has been stabilized again and that tenants who have found themselves in the new reality of hybrid work make long-term decisions, commented Maciej Moralewicz, regional director, Knight Frank.
Despite many times lower new supply in 2021 compared to previous years, the vacancy rate increased by almost 2 pp. year on year and amounted to 16.7 percent. This is the highest vacancy rate recorded in regional markets. Asking rents in Wrocław remained stable in the past quarters, ranging from EUR 10 to EUR 16 per sq m. per month, however, in some office buildings, more expensive offers, above EUR 16 per sq m, are starting to appear. monthly.
We can expect rents of EUR 10 in B-class buildings, which, unable to compete with A-class buildings in terms of technical standards, flexibility and location, try to attract the tenant with an offer with a lower rental rate. Projects where the rent exceeds 16 euros is very little. A typical offer in an A-class building in a good location fluctuates around EUR 14.50-15 - adds Maciej Moralewicz.