{"id":2155,"date":"2023-01-30T18:29:35","date_gmt":"2023-01-30T18:29:35","guid":{"rendered":"https:\/\/ceo.com.pl\/en\/?p=2155"},"modified":"2023-01-30T18:29:35","modified_gmt":"2023-01-30T18:29:35","slug":"regional-cities-overtake-warsaw-office-market-30972","status":"publish","type":"post","link":"https:\/\/ceo.com.pl\/en\/regional-cities-overtake-warsaw-office-market-30972\/","title":{"rendered":"Regional cities overtake Warsaw office market"},"content":{"rendered":"<p><strong>According to \u201cOffice Occupier: Office Market in Regions\u201d, a report published by real estate advisory firm Newmark Polska, in 2022 Poland\u2019s regional city markets overtook Warsaw in terms of total modern office stock. Their overall vacancy rate held firm amid moderate development activity. <\/strong><\/p>\n<p>\u201cLeasing activity bounced back, with tenants largely seeking offices featuring modern technologies that optimize office lease expenses and bring long-term savings,\u201d says <strong>Anna Osiecka, Associate Director, Office Tenant Representation, Newmark Polska<\/strong>. \u201cRental rates are, however, likely to hold firm in the coming quarters as office availability remains high in both existing buildings and projects in the pipeline.\u201d<\/p>\n<p>At the end of Q4 2022, the combined office stock of Poland\u2019s eight largest regional city markets (Krakow, Wroc\u0142aw, Tricity, Katowice, Pozna\u0144, \u0141\u00f3d\u017a, Lublin, and Szczecin) amounted to over 6.4 million sqm, surpassing that of the capital by close to 3%. And given the regional development activity, regional cities are poised to further outpace Warsaw. Last year\u2019s total new office supply reached 405,250 sqm, up by close to 80% on 2021 but down by almost 26% on the peak year of 2019, which witnessed nearly 547,000 sqm come onto the market.<\/p>\n<p>Development activity was the strongest in the first quarter of the year, accounting for over 60% of last year\u2019s total new supply. The largest office completions in 2022 included A1 and A2 of the Global Office Park in Katowice (55,200 sqm, Q1), .KTW II in Katowice (39,900 sqm, Q1), Midpoint71 in Wroc\u0142aw (36,200 sqm, Q1) and Brain Park\u2019s buildings A and B in Krakow (31,000 sqm, Q4).<\/p>\n<p>At the end of Q4 2022, the development activity in Poland\u2019s key regional cities was broadly unchanged over the quarter, with total stock under construction comprising approximately 583,000 sqm, down by close to 21% year-on-year.<\/p>\n<p>\u201cThe office development under construction is currently around 35% below the average for 2015-2019, when around 900,000 sqm on average came onto the market annually,\u201d says <strong>Agnieszka Giermakowska, Research &amp; Advisory Director, Newmark Polska. <\/strong>\u201cThis shows that developers remain cautious about commencing new projects, closely watching the market, especially occupier demand and the overall macroeconomic situation.\u201d<\/p>\n<p>Q4 2022 was the best-performing quarter on the core regional markets in terms of leasing activity throughout 2022, with close to 174,700 sqm of office deals, up by over 65% over the previous three months. In 2022, the total take-up in the largest regional cities surpassed 623,250 sqm, representing an almost 5% increase on 2021, with regional occupier activity gradually returning to pre-pandemic levels. Last year\u2019s regional office take-up came predominantly from the IT and business services sectors: 26% and 19%, respectively. Manufacturing came third, accounting for 11% of the total leasing volume.<\/p>\n<p>New leases accounted for 48.6% of the total regional city office take-up in 2022, followed by regearing and renewals (30.4%). The remaining 21% was spread across pre-lets (10.4%), expansions (6.2%) and owner-occupier deals (4.4%). However, regional cities \u2013 just like Warsaw \u2013 also witnessed a shift in occupier interest toward lease renegotiations and renewals which made up 40% of the total leasing activity in Q4 2022.<\/p>\n<p>At the end of Q4 2022, the overall vacancy rate in the core regional office markets remained virtually unchanged since the third quarter at 15.3% (up by 0.1 pp), but edged up by 1.2 pp year-on-year. The combined office availability in the eight regional city office markets amounted to 985,100 sqm.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>According to \u201cOffice Occupier: Office Market in Regions\u201d, a report published by real estate advisory firm Newmark Polska, in 2022 Poland\u2019s regional city markets overtook Warsaw in terms of total modern office stock. Their overall vacancy rate held firm amid moderate development activity. \u201cLeasing activity bounced back, with tenants largely seeking offices featuring modern technologies [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":2019,"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":[2425,2554,75,70,2688,77,73,3251,2522,2680,74,76,72,82,71],"class_list":["post-2155","post","type-post","status-publish","format-standard","has-post-thumbnail","category-real-estate","tag-agnieszka-giermakowska","tag-anna-osiecka","tag-katowice","tag-krakow","tag-leasing","tag-lublin","tag-lodz","tag-newmark","tag-newmark-polska","tag-polska","tag-poznan","tag-szczecin","tag-tricity","tag-warsaw","tag-wroclaw"],"jetpack_publicize_connections":[],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/posts\/2155","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=2155"}],"version-history":[{"count":0,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/posts\/2155\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/media\/2019"}],"wp:attachment":[{"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/media?parent=2155"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/categories?post=2155"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/tags?post=2155"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}