What’s happening in the regional office space markets? Summary of H1 2023
Total existing resources of modern office space in the eight main regional markets (Kraków, Wrocław, Trójmiasto, Katowice, Poznań, Łódź, Lublin, Szczecin) reached 6.91 million sqm at the end of June. Kraków (1.73 million sqm), Wrocław (1.46 million sqm), and Trójmiasto (1.11 million sqm) remain the largest office markets in Poland after Warsaw, according to REDD, the largest and most advanced business real estate database in this part of Europe.
“In the first half of the year, the Wrocław market enjoyed the greatest success among tenants, with transactions totaling 106.9 thousand sqm of office space. Kraków also had a good six months, with a total transaction area of 61.5 thousand sqm. However, regional markets closed the half-year with a result 12.8% lower compared to the previous year,” said Krzysztof Foks, Head Of Research, REDD, finne.pl.
From January to June 2023, 12 investments with a total office space of 148 thousand sqm were delivered for use in the regional markets. The largest completed investments during this period were:
Nowy Rynek – Building E in Poznań (27.3 thousand sqm)
Ocean Office Park B (24.4 thousand sqm)
Centrum Południe – Building 3 in Wrocław (20.5 thousand sqm)
In June 2023, the vacancy rate for the main regional markets was estimated at 15.3%, providing a total of 1.05 million sqm of available office space for immediate rental. The highest vacancy rate was recorded in Łódź (19.4%), while the lowest was in Trójmiasto (11.1%).
In June 2023, the demand for modern office space in regional markets reached 56 thousand sqm. The total demand for offices outside of Warsaw amounted to 365 thousand sqm since the beginning of the year.
REDD is the largest and most advanced business real estate database in this part of Europe. For the past 4 years, the platform has been transforming the way we think about real estate and building the foundations for a transparent and innovative sector. By utilizing big data, the platform allows for real-time analysis, enabling industry professionals to make informed decisions. The platform not only provides data but also offers tools for multidimensional analysis and optimal utilization of information.