At the end of Q1 2019, the total modern office stock in eight regional markets exceeded 5 million sq m, which is 5.3% less than existing stock in Warsaw. Over 2 million sq m is under construction, of which over 834,000 sq m are in Warsaw and over 1.2 million sq m are in regional cities. Colliers International experts selected the most important events that took place in the first three months of the year in the office market:
- Spark with a new building
In the first quarter of 2019, over 20,000 sq m were delivered to the Warsaw office market. The largest project completed in the Polish capital was a further building in the Spark complex in the Wola district (building B, 15,700 sq m). The entire complex is due to be completed in 2023.
- Poznan with 0.5 million sq m
After the commissioning of II phase of the Business Garden complex, which consists of five buildings with a total area of 46,100 sq m, Poznan joined the group of cities in which office resources exceed 0.5 million sq m. The high level of new supply contributed to an increase in the vacancy rate to 15.8%. This is the highest level of vacant space among regional cities.
- Largest lease transaction in Q1 2019
Akamai from the IT sector has renewed its lease of 11,200 sq m of office space in the Vinci Office Building in Kraków – it was the largest lease transaction in Q1 2019.
- New contracts dominate
The largest share among all contracts signed in Q1 2019 were for new agreements (58%) and renegotiations (33%). Expansions and owner-occupier transactions amounted to 7% and 2%, respectively. Pre-let contracts accounted for 66,500 sq m, of which up to 43,100 sq m were leased in regional cities (64.8%).
