The Wrocław office market is enjoying an unprecedented boom

Adding date: 14.09.2018 | Poland

The Wrocław office market is enjoying an unprecedented boom, says real estate advisory firm Cresa Poland in its report “Occupier Economics: Office Market in Wrocław in H1 2018”.

In mid-2018, Wrocław’s office stock reached 1.01 million sqm, which represented a 16% increase on the same period last year. Eight new office buildings providing a total of 104,000 sqm were delivered to the market between January and June 2018. The largest office completions included Echo Investment’s 24,900 sqm Sagittarius, which was delivered in Q2, followed BZ WBK’s 17,000 sqm office building and Echo Investment’s 13,900 sqm West Link.

Office take-up hit 36,000 sqm in Q2 2108, but the overall transaction volume for the first half of the year amounted to 60,000 sqm. New leases accounted for 80% of the leasing activity, one of the highest rates in Poland, which is evidence of the Wrocław market’s rapid growth. The largest transactions were the 17,000 sqm owner-occupier deal by BZ WBK (now Santander Bank Polska) and the 10,000 sqm lease signed by Santander Consumer Bank S.A. at Business Garden I. The Santander Group accounted for nearly half of the city’s leasing volume. Other major transactions included a confidential tenant’s 4,700 sqm lease at the Nowy Targ office building and Eltron’s 4,100 sqm owner-occupier deal at Eltron HQ.

“Wrocław plays a key role on the map of BPO/SSC/R&D/IT centres. There is a strong preference for occupiers to locate in existing office buildings or schemes at an advanced stage of construction. Although Wrocław is a tenant-led market, it is facing an undersupply of suitable office space available for immediate lease. Tenants who can shelve plans to relocate or open a new office until 2019, when new office projects with large volumes of vacant space will come onto the market, will have a wider choice of options,” said Michał Grabikowski, Head of the Wrocław Office, Cresa Poland.

Absorption in H1 2018 amounted to 91,000 sqm, representing a 65% rise on the same period last year, which was largely attributed to the Santander Group’s strong activity. Wrocław’s vacancy rate stood at 9.7% at the end of Q2 2018, up by 1.3 p.p. compared to last year and up by 0.4% on the average for the last three years.

Asking rents remained relatively flat in Q2 2018, standing at EUR 13-16/sqm/month in Class A office buildings in Wrocław’s city centre with the median at EUR 14.5, and at EUR 12-14.5/sqm/month in other locations.

Connected materials

Specjał Group expands its wholesale network
Specjał Group expands its wholesale network
17.04.2019
Echo Investment presents very good results
Echo Investment presents very good results
28.11.2018
CyFlare Adds Industry Veteran David Tran as VP International Channel Sales
CyFlare Adds Industry Veteran David Tran as VP International Channel Sales
20.03.2019
Previous
Local commercial real estate market – Bydgoszcz and the neighbourhood
Local commercial real estate market – Bydgoszcz and the neighbourhood
Next
Bydgoszcz – number 1 for IT in Poland
Bydgoszcz – number 1 for IT in Poland

Newsletter

Calendar of events

  • 19th Annual Shared Services and Outsourcing Week Europe 201913.05.2019 Lisbon (Portugal)
  • The Content IQ Summit London23.05.2019 London (UK)
  • Outsourcing Summit & Expo 201901.10.2019 London (UK)
See others

Experts

PolandWiktor Doktór
Wiktor Doktór
see others

Outsourcing&More

Newsroom

  • Second phase of Business Garden Poznan commissionedSecond phase of Business Garden Poznan commissioned23.04.2019
  • Specjał Group expands its wholesale networkSpecjał Group expands its wholesale network17.04.2019
  • Store of eobuwie.pl in Galeria MłocinyStore of eobuwie.pl in Galeria Młociny16.04.2019
  • Student housing in CEE: The next big thingStudent housing in CEE: The next big thing16.04.2019
  • You get what you’ve agreed toYou get what you’ve agreed to15.04.2019
See others

Blogs

  • Do you like to sell? Do you know how to sell?
    Do you like to sell? Do you know how to sell?Wiktor Doktór
  • Why is Digital Marketing more important than ever in 2017?
    Why is Digital Marketing more important than ever in 2017?Sean Patterson
  • 3 Trend Shifts that have Re-shaped the BPO Industry
    3 Trend Shifts that have Re-shaped the BPO Industry Catherine Park
  • BSS events calendar for September
    BSS events calendar for SeptemberWiktor Doktór
  • Where is CEE on the global map of locations for BPO
    Where is CEE on the global map of locations for BPOWiktor Doktór
See others
  • Tom Quigley
    Tom QuigleyOwner & Chief Marketing Officer of QUIGLEYMEDIA
  • Waldek Olbryk
    Waldek Olbryk
  • Sean Patterson
    Sean PattersonPartner at Euro Digital Partners
  • Karina Kreja
    Karina KrejaWorkplace Strategy expert, Licensed Valuer
  • Wiktor Doktór
    Wiktor DoktórBPO expert, CEO of Pro Progressio and one of the most experienced outsourcing personality in Poland.
See others

List of companies

TreyST Nieruchomości Sp. z o.o.
TreyST Nieruchomości Sp. z o.o.
(Poland)
See others