{"id":1106,"date":"2019-10-09T20:11:51","date_gmt":"2019-10-09T20:11:51","guid":{"rendered":"http:\/\/ceo.com.pl\/en\/?p=1106"},"modified":"2019-10-09T20:11:51","modified_gmt":"2019-10-09T20:11:51","slug":"wroclaw-is-quickly-increasing-its-office-potential-42970","status":"publish","type":"post","link":"https:\/\/ceo.com.pl\/en\/wroclaw-is-quickly-increasing-its-office-potential-42970\/","title":{"rendered":"Wroc\u0142aw is quickly increasing its office potential"},"content":{"rendered":"<p><strong>Wroc\u0142aw is at the forefront of the most dynamically developing office markets in Poland.<\/strong><\/p>\n<p>In total, around 900 thousand sq m. of office space are under construction in major business centers outside Warsaw. In Wroc\u0142aw, which apart from Cracow is leading in the regions, around 210 thousand sq m. of offices are under construction. According to Walter Herz\u2019s data, the resources of the capital of Lower Silesia today include over 1.1 million sq m. of space, which is over 10 per cent. of office facilities at the disposal of the largest urban centers in the country. Wroc\u0142aw belongs to a small group of the fastest growing office markets in Poland. Every year, it increases its offer by an average of several per cent.<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/ceo.com.pl\/en\/wroclaw-is-quickly-increasing-its-office-potential-42970\/#High_market_absorption\" >High market absorption<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/ceo.com.pl\/en\/wroclaw-is-quickly-increasing-its-office-potential-42970\/#New_office_buildings\" >New office buildings<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/ceo.com.pl\/en\/wroclaw-is-quickly-increasing-its-office-potential-42970\/#Complexes_under_construction\" >Complexes under construction<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/ceo.com.pl\/en\/wroclaw-is-quickly-increasing-its-office-potential-42970\/#Planned_facilities\" >Planned facilities<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/ceo.com.pl\/en\/wroclaw-is-quickly-increasing-its-office-potential-42970\/#Business_services_are_the_strongest_group_of_tenants\" >Business services are the strongest group of tenants<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/ceo.com.pl\/en\/wroclaw-is-quickly-increasing-its-office-potential-42970\/#The_largest_investment_transactions\" >The largest investment transactions<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"High_market_absorption\"><\/span>High market absorption<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In the first half of this year, three cities: Cracow, Wroc\u0142aw and the Tri-City generated over 70 per cent of total demand for office space in regional cities, apart from Warsaw. However, the volume of lease transactions in the Wroc\u0142aw agglomeration was lower than during the same period a year ago. &#8211; In the first half of 2019, mostly pre-let agreements were concluded on the Wroc\u0142aw market. The reason is the lack of vacant offices in the existing buildings. Vacancy rate in the city has dropped to 9 per cent. Companies that are looking for space of several thousand sq m have difficulty finding an office in the commissioned office buildings &#8211; says Mateusz Strzelecki, Partner and Head of Regional Markets at Walter Herz.<\/p>\n<p>&#8211; Demand for Wroc\u0142aw offices has been at a record high level for two years. Although in the early months of this year the demand for space was still very high, the following months turned out to be weaker, which does not mean that this year&#8217;s market absorption will prove to be lower than recorded in the recent years. Especially because the offer of the office market in Wroc\u0142aw is constantly increasing. Several investments, which are in the final stage of implementation, are to be completed this year. And by the end of 2021, Wroc\u0142aw market is to gain around 250 thousand sq m. of offices. Large real estate development companies are already preparing their next projects in Wroc\u0142aw, which will deliver another 100 thousand sq m. of space to the market &#8211; adds Mateusz Strzelecki.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"New_office_buildings\"><\/span>New office buildings<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>This year Wroc\u0142aw market gained such buildings as City One, \u017bmigrodzka 83, STReet Point, SQ Business Center Wroc\u0142aw and Carbon Tower complex recently completed by Cavatina Holding, offering over 19,000 sq m. of space.<\/p>\n<p>First tenants are also moving into Skanska\u2019s Nowy Targ office building. The investment, which is located between Nowy Targ and Dominikanski squares in the southern part of Wroc\u0142aw, has brought over 21 thousand sq m. of space.<\/p>\n<p>On Powsta\u0144c\u00f3w \u015al\u0105skich and Szcz\u0119\u015bliwa streets in Wroc\u0142aw, Skanska is also building Centrum Po\u0142udnie project, which will eventually offer approximately 85 thousand sq m. of space. In the first stage of construction, two buildings will bring over 26 thousand sq m. of offices. Their implementation is expected to be completed in the second quarter of 2020.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Complexes_under_construction\"><\/span>Complexes under construction<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Top-class office facilities are under construction in the capital of Lower Silesia. They are one of the largest complexes in Poland. The new projects are based on the latest technological and ecological solutions and more and more often are built in accordance with the principles of sustainable development. One of them is Vastint\u2019s investment, the construction of which is to be completed in December 2019. The implementation of the second stage of Business Garden Wroc\u0142aw project, located on Legnicka street, will bring 79 thousand sq m. of modern office space. This is the largest investment that is currently under construction in \u00a0the regional cities, apart from Warsaw. The complex will offer a total of 117 thousand sq m. of space.<\/p>\n<p>Echo Investment is carrying out West 4 Business Hub investment on Na Ostatnim Groszu street. The facility that will provide over 80 thousand sq m. of office space is a continuation of the investment which includes West Gate and West Link buildings. The first West 4 Business Hub office building, which is to be commissioned in the third quarter of 2020, will include over 15.5 thousand sq m. of space. The developer has already announced the beginning of construction of the next investment in Wroc\u0142aw this year.<\/p>\n<p>Before the end of 2019, Buma Group plans to complete the construction of a second office building in Wroc\u0142aw\u2019s Cu Office complex located at Jaworska Street. In the fourth quarter of this year, the building will provide 10.6 thousand sq m. of office space. Archicom\u2019s City 2 office building located in the center of Wroc\u0142aw is also under construction. The facility will provide the city wiith another 12 thousand sq m. of offices in the second quarter of 2020.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Planned_facilities\"><\/span>Planned facilities<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Other big projects are also planned. i2 Development company is preparing a mixed-use facility providing offices, as well as residential and retail premises.<\/p>\n<p>Investments are also being prepared for take-off at Port Popowice, which is one of the largest investment areas in Wroc\u0142aw, covering 14 ha. The plans assume over 2.5 thousand apartments, commercial and recreational spaces built in this area. The construction of the first office building with 13 thousand sq m. of space is to begin soon. The 7-storey building is to include a glass fa\u00e7ade with vertical and horizontal screens, resembling razor blades, creating an alternating architectural rhythm. Vantage Development plans to complete the building by mid-2021.<\/p>\n<p>Develia company is also preparing its next Wroc\u0142aw implementation. The developer intends to build a modern office building on a 5.5 ha plot on Kolejowa street.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Business_services_are_the_strongest_group_of_tenants\"><\/span>Business services are the strongest group of tenants<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The largest demand for office space in Wroc\u0142aw comes from the companies representing the IT industry. Tenants also include BPO\/SSC sector, which is the main tenant for modern office space not only in the capital of Lower Silesia. The industry employs 48 thousand people in the Wroc\u0142aw agglomeration, which constitutes about 15 per cent of employment in the sector in Poland and occupies about half of the available office space in the city. In the first half of 2019, tenants from the modern business services sector leased approximately 190 thousand sq m. of offices in the largest cities in the country, generating 25 per cent of total demand for office space at the time. Cracow and Wroc\u0142aw, as the main centers of the BPO\/SSC sector in Poland, had the largest share in this rental volume.<\/p>\n<p>Big plans of the sector companies prove high value of our market in terms of investment. It also directly translates into the decisions of investors who implement office projects on our market and expand their property portfolio.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"The_largest_investment_transactions\"><\/span>The largest investment transactions<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Confirmation of the large involvement of investors in Wroc\u0142aw was, among others, the largest transaction recorded in regions in the first half of this year. Filipino ISOC holding bought three office buildings that are part of Business Garden complex in Wroc\u0142aw for almost 190 million euro, as well as Gda\u0144sk-based Argon located in Alchemia office complex.<\/p>\n<p>Like in all of the largest regional markets in Poland, the stock of flexi space is also dynamically developing in Wroc\u0142aw. International operators of flexible offices are increasing their potential in the city. In the second quarter of this year, among others, Spaces, a co-working supplier of creative work space, leased 2.7 thousand sq m. of office space in the mixed-use Wroclavia center.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Wroc\u0142aw is at the forefront of the most dynamically developing office markets in Poland. In total, around 900 thousand sq m. of office space are under construction in major business centers outside Warsaw. In Wroc\u0142aw, which apart from Cracow is leading in the regions, around 210 thousand sq m. of offices are under construction. According [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":1107,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"tdm_status":"","tdm_grid_status":"","footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[8],"tags":[2752,103,3094,3095,20,166,3065,118,3011,64,150,104,133,3096,106,82,71],"class_list":["post-1106","post","type-post","status-publish","format-standard","has-post-thumbnail","category-real-estate","tag-apart","tag-bpo","tag-cavatina-holding","tag-develia","tag-echo-investment","tag-gdansk","tag-i2-development","tag-mateusz-strzelecki","tag-nowy-targ","tag-poland","tag-skanska","tag-ssc","tag-tri-city","tag-vantage-development","tag-walter-herz","tag-warsaw","tag-wroclaw"],"jetpack_publicize_connections":[],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/posts\/1106","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/comments?post=1106"}],"version-history":[{"count":0,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/posts\/1106\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/media\/1107"}],"wp:attachment":[{"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/media?parent=1106"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/categories?post=1106"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/tags?post=1106"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}