{"id":1226,"date":"2020-02-26T06:42:54","date_gmt":"2020-02-26T06:42:54","guid":{"rendered":"http:\/\/ceo.com.pl\/en\/?p=1226"},"modified":"2020-02-26T06:42:54","modified_gmt":"2020-02-26T06:42:54","slug":"record-high-new-supply-in-the-regions-61-buildings-commissioned-24546","status":"publish","type":"post","link":"https:\/\/ceo.com.pl\/en\/record-high-new-supply-in-the-regions-61-buildings-commissioned-24546\/","title":{"rendered":"Record-high new supply in the regions &#8211; 61 buildings commissioned"},"content":{"rendered":"<p>The <strong>regional office market<\/strong> is not slowing down. In 2019, a record-high volume of new office space was delivered in eight major regional cities \u2013 547,000 sqm, bringing the total supply to over 5.6 million sqm. The total stock in the eight regional cities for the first time was larger than in Warsaw. Two destinations, Krak\u00f3w and Wroc\u0142aw, were the biggest drivers of growth, while Katowice is currently the city with the largest amount of space under construction.<\/p>\n<p>In 2019, as many as 61 office buildings underwent commissioning in the eight main regional markets, averaging nearly 9,000 sqm, which translated into a record high level of new supply. According to the report prepared by experts from BNP Paribas Real Estate Poland, Krak\u00f3w remains the leader in this respect (159,000 sqm), where as much new office space was delivered in 2019 as in Warsaw. Right behind Krak\u00f3w there is Wroc\u0142aw with a slightly lower result (147,000 sqm).<\/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\/record-high-new-supply-in-the-regions-61-buildings-commissioned-24546\/#Major_projects_in_Krakow_and_Wroclaw\" >Major projects in Krak\u00f3w and Wroc\u0142aw<\/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\/record-high-new-supply-in-the-regions-61-buildings-commissioned-24546\/#Demand_at_a_level_similar_to_last_years_Krakow_still_the_most_popular\" >Demand at a level similar to last year&#8217;s, Krak\u00f3w still the most popular<\/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\/record-high-new-supply-in-the-regions-61-buildings-commissioned-24546\/#The_high_level_of_new_supply_has_resulted_in_a_slight_increase_in_vacancies\" >The high level of new supply has resulted in a slight increase in vacancies<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Major_projects_in_Krakow_and_Wroclaw\"><\/span>Major projects in Krak\u00f3w and Wroc\u0142aw<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>A significant share of the new supply in Krak\u00f3w was brought by three projects offering office space of over 20,000 sqm each. Tischnera Office, commissioned by the end of last year (nearly 33,000 sqm) is distinguished by large, cascading terraces starting from the 3rd floor upwards and a huge patio with an area of more than 1,000 sqm, which will be accessible to all office users.<\/p>\n<p>The asset has been targeted by Globalworth Poland, one of the largest office investors in Central and Eastern Europe. The second building that has recently considerably changed the situation on the office market in the capital of Ma\u0142opolska is Fabryczna Office Park, which is to consist of three class A office buildings with a total area of 40,000 sqm and is part of the larger Fabryczna City complex. Last year, two phases of this project were completed and tenants could take up 29,000 sqm. The third largest investment was a modern V. Office building (nearly 22,000 sqm) &#8211; Tomasz Skrzypek, Senior Consultant, Office Agency, BNP Paribas Real Estate Poland<\/p>\n<p>The volume of Krak\u00f3w&#8217;s office stock is slightly above 1.4 million sqm, making it the largest of the regional markets. Only in the last three years, the supply there has grown by 56%.<\/p>\n<p>In Wroc\u0142aw, almost half of the total volume of new supply could be attributed to the second phase of the Business Garden Wroc\u0142aw complex, which is the largest office investment completed in the previous year. The project composed of six buildings with a total area of nearly 77,000 sqm was commissioned in 2019. The scale of the project is evidenced by the number of people who will be able to work on such a large area \u2013 up to 10,000. Wroc\u0142aw is the second largest <strong>regional office market in Poland<\/strong> with the stock exceeding one million square metres. Since the beginning of 2017, the volume of office supply has increased by almost 39%, reaching the level of nearly 1.2 million sqm at the end of 2019.<br \/>\nRapid development of Pozna\u0144, good prospects for Katowice and Tricity<\/p>\n<p>The last year also saw an intensive development of the office market in Pozna\u0144. The volume of new supply amounted to 86,000 sqm, which resulted in an increase by 18% over the last year. This makes Pozna\u0144 the fastest growing region in the country. Almost entire new office space in the capital of the Wielkopolska province was provided in two complexes. In April last year, the second stage of Business Garden Pozna\u0144 was opened, consisting of five office buildings with an area of 46,000 sqm. The complex is located in the close vicinity of the \u0141awica Airport. The second major project completed last year &#8211; the Nowy Rynek Pozna\u0144 complex &#8211; consists of the two buildings with almost 31,000 sqm in total. The office market in Pozna\u0144 is currently on an upward trend, but according to Miko\u0142aj Laskowski from BNP Paribas Real Estate Poland, the coming years will be marked by intensive development of two other regional markets: Katowice and Tricity.<\/p>\n<p>They account for over 42% of space currently under construction on the eight main regional markets, that reached over 772,000 sqm at the end of Q4 2019. More than half of that space (456,000 sqm) is expected to be delivered to the market in 2020. The largest project under construction in these two regions is the Face2Face Business Campus complex in Katowice (45,000 sqm), consisting of two office buildings. They are being developed in a convenient location, at the junction of Chorzowska and Grundmanna streets, right at the entrance to the city centre &#8211; Miko\u0142aj Laskowski, Head of the Office Agency, BNP Paribas Real Estate Poland<\/p>\n<p>Another notable development project in Katowice is. KTW II (42,000 sqm), which is the higher office tower of the complex located in the centre of the city, right next to the Spodek Sports and Entertainment Arena and Zi\u0119tka roundabout. The building will be 133 meters tall and will have 31 aboveground storeys, which makes it the highest building not only in the city, but also in the entire region. Another project on the list of the biggest investments in the two abovementioned markets is 3T Office Park in Gdynia (38,500 sqm). The complex will consist of three towers \u2013 two with 10 aboveground storeys, and the middle one with 13 storeys, as well as a 2-level underground car park with 420 parking spaces. The project, located in Gdynia&#8217;s business and office district, located in the vicinity of \u0141u\u017cycka Street and Pomeranian Science and Technology Park, upon completion will concentrate about 20% of the total office space existing in Gdynia.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Demand_at_a_level_similar_to_last_years_Krakow_still_the_most_popular\"><\/span>Demand at a level similar to last year&#8217;s, Krak\u00f3w still the most popular<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In 2019 net take-up in regional cities amounted to 463,000 sqm which is similar to the previous year&#8217;s result. The largest regional market enjoyed the highest demand: Krak\u00f3w accounted for almost 39% of total net demand.<\/p>\n<p>Last year, four out of six largest lease agreements for office space of over 10,000 sqm each were concluded in Krak\u00f3w. The biggest deal, not only last year, but also in the last two years, concerned the Fabryczna Office Park complex, where UBS leased 19,300 sqm &#8211; Joanna Popielarczyk, Senior Consultant, Transaction Management, Office Agency, BNP Paribas Real Estate Poland<\/p>\n<p>The Swiss financial company, which to date employs 3,600 people in its Krak\u00f3w offices, intends to move to a new location in 2021. In 2019, around 46% of net take-up accounted for pre-let agreements (space leased in buildings still under construction).<\/p>\n<h2><span class=\"ez-toc-section\" id=\"The_high_level_of_new_supply_has_resulted_in_a_slight_increase_in_vacancies\"><\/span>The high level of new supply has resulted in a slight increase in vacancies<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In the analysed period, the vacancy rate rose by 1.2 p.p. to 9.6% y-o-y. According to BNP Paribas Real Estate Poland\u2019s experts, this is the result of the delivery of a record-breaking volume of new office space. At the end of the previous year the highest vacancy rates were recorded in Wroc\u0142aw (12.7%) and \u0141\u00f3d\u017a (11.2%). The lowest share of vacant space was recorded in the Tricity (4.9%).The highest increases in vacancy rates were recorded in Pozna\u0144 and Wroc\u0142aw, which resulted from the delivery of large new supply in these markets. Lublin, with the biggest drop resulting from the lack of new office investments in the past year, is at the opposite extreme. This allowed for the absorption of a considerable amount of vacant space in this market and contributed to a decrease by 6.1 p.p. to 9.3% as of the end of December 2019.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The regional office market is not slowing down. In 2019, a record-high volume of new office space was delivered in eight major regional cities \u2013 547,000 sqm, bringing the total supply to over 5.6 million sqm. The total stock in the eight regional cities for the first time was larger than in Warsaw. Two destinations, [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":797,"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":[2723,2724,81,490,167,863,488,3123,75,70,77,73,491,64,74,489,72,392,82,2807,71],"class_list":["post-1226","post","type-post","status-publish","format-standard","has-post-thumbnail","category-real-estate","tag-bnp-paribas","tag-bnp-paribas-real","tag-bnp-paribas-real-estate","tag-bnp-paribas-real-estate-poland","tag-gdynia","tag-globalworth","tag-globalworth-poland","tag-joanna-popielarczyk","tag-katowice","tag-krakow","tag-lublin","tag-lodz","tag-mikolaj-laskowski","tag-poland","tag-poznan","tag-tomasz-skrzypek","tag-tricity","tag-ubs","tag-warsaw","tag-wielkopolska","tag-wroclaw"],"jetpack_publicize_connections":[],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/posts\/1226","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=1226"}],"version-history":[{"count":0,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/posts\/1226\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/media\/797"}],"wp:attachment":[{"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/media?parent=1226"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/categories?post=1226"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/tags?post=1226"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}