{"id":1390,"date":"2020-07-27T08:57:36","date_gmt":"2020-07-27T08:57:36","guid":{"rendered":"http:\/\/ceo.com.pl\/en\/?p=1390"},"modified":"2020-07-27T08:57:36","modified_gmt":"2020-07-27T08:57:36","slug":"the-pandemic-has-not-reduced-demand-for-regional-offices-26408","status":"publish","type":"post","link":"https:\/\/ceo.com.pl\/en\/the-pandemic-has-not-reduced-demand-for-regional-offices-26408\/","title":{"rendered":"The pandemic has not reduced demand for regional offices"},"content":{"rendered":"<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\/the-pandemic-has-not-reduced-demand-for-regional-offices-26408\/#Colliers_International_summarizes_Q2_2020_in_office_markets_in_the_regions\" >Colliers International summarizes Q2 2020 in office markets in the regions<\/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\/the-pandemic-has-not-reduced-demand-for-regional-offices-26408\/#Demand_higher_than_last_year\" >Demand higher than last year<\/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\/the-pandemic-has-not-reduced-demand-for-regional-offices-26408\/#Available_area\" >Available area<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Colliers_International_summarizes_Q2_2020_in_office_markets_in_the_regions\"><\/span>Colliers International summarizes Q2 2020 in office markets in the regions<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>At the end of Q2 2020 total modern office stock in the aforementioned eight regional cities amounted to <strong>5.6 million sq m<\/strong>. The largest regional office markets are Krak\u00f3w (1,483,300 sq m), Wroc\u0142aw (1,186,100 sq m) and the Tri-City (868,400 sq m).<\/p>\n<p>In H1 2020, over <strong>175,600 sq m<\/strong> of office space was completed, mostly in Krak\u00f3w (69,100 sq m), Katowice (31,100 sq m) and the Tri-City (29,900 sq m). It was 27% less than in H1 2019.<\/p>\n<p>\u201cContrary to appearances, the decrease in the number of sq m completed in the first half of this year is not a result of the suspension of construction works after the outbreak of the Covid-19 pandemic. After short interruptions at some construction sites, construction works have resumed, most developers do not expect significant delays in commissioning,&#8221; says <strong>Olga Drela<\/strong>, senior analyst in the Research and Consultancy Services at Colliers International.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Demand_higher_than_last_year\"><\/span>Demand higher than last year<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The total volume of leasing activity in H1 2020 amounted to <strong>333,000 sq m<\/strong>, which is 9% more than in the same period last year. However, in Q2 2020 alone, almost twice less office space was leased than in Q1 2020. Since January 2020 the largest volume of space was leased in Krak\u00f3w (114,700 sq m).<\/p>\n<p>Between January and June 2020 the highest share in total take-up volume was attributed to new deals: 54% (including pre-lets transactions and owner-occupier deals). Renewals of current lease agreements attributed to 32% while expansions to 14%. In Q2 2020 alone, renewal transactions accounted for the largest share &#8211; 59%, whereas new contracts and expansions accounted for 28% and 13%, respectively. The demand structure was clearly dominated by companies from the IT sector.<\/p>\n<p>\u201cThe Covid-19 pandemic has resulted in increased uncertainty and caution among many companies, which has translated into longer decision-making processes in many fields, also in the context of office space leasing. Tenants who are just finishing their lease agreements are forced to take certain steps, so many transactions are still ongoing. As we expected, the number of renegotiations increased significantly in the second quarter and this trend will certainly continue. There are also more and more sub-leasing offers on the market &#8211; currently there are approx. 70,000 sq m of sublease space is currently available on the largest regional markets<a href=\"#_ftn1\" name=\"_ftnref1\">[1]<\/a> and this number is constantly growing\u201d, says <strong>Pawe\u0142 Ska\u0142ba<\/strong>, senior partner, director of Office Agency at Colliers International.<\/p>\n<p>The largest transactions executed in H1 2020 include a renewal of the ABB\u2019s contract in the Axis office building in Krak\u00f3w (20,000 sq m), a pre-lease transaction of Fujitsu Technology Solutions in the Fuzja project in \u0141\u00f3d\u017a (16,300 sq m) and a confidential client transaction in Tertium Business Park II in Krak\u00f3w (14,500 sq m).<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Available_area\"><\/span>Available area<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>At the end of Q2 2020 in the eight major regional markets almost 571,600 sq m remained vacant, resulting in a vacancy rate of 10.2% (0.7 pp q.\/q. increase). The highest vacancy rate was recorded in Pozna\u0144 &#8211; 14.5%, when the lowest in the Tri-City and Katowice &#8211; 6.1%.<\/p>\n<p><a href=\"#_ftnref1\" name=\"_ftn1\">[1]<\/a> Krak\u00f3w, Wroc\u0142aw, Tri-City, Katowice, Pozna\u0144, \u0141\u00f3d\u017a, Lublin<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Colliers International summarizes Q2 2020 in office markets in the regions At the end of Q2 2020 total modern office stock in the aforementioned eight regional cities amounted to 5.6 million sq m. The largest regional office markets are Krak\u00f3w (1,483,300 sq m), Wroc\u0142aw (1,186,100 sq m) and the Tri-City (868,400 sq m). In H1 [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":1391,"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":[8,5],"tags":[289,299,496,2864,75,70,2688,77,73,441,253,74,133,71],"class_list":["post-1390","post","type-post","status-publish","format-standard","has-post-thumbnail","category-real-estate","category-business","tag-colliers","tag-colliers-international","tag-covid-19","tag-fujitsu","tag-katowice","tag-krakow","tag-leasing","tag-lublin","tag-lodz","tag-olga-drela","tag-pawel-skalba","tag-poznan","tag-tri-city","tag-wroclaw"],"jetpack_publicize_connections":[],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/posts\/1390","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=1390"}],"version-history":[{"count":0,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/posts\/1390\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/media\/1391"}],"wp:attachment":[{"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/media?parent=1390"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/categories?post=1390"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/tags?post=1390"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}