JLL: 10 mln sqm of office space at end-H1

There were over 10 million square meters of office space at end-H1, with 1.8 million sqm under construction of which 1.1 million sqm outside Warsaw, real estate consultancy JLL said in its report.

“In the first half of the year, developers delivered 36 percent more modern space in major business centers than in the same period last year. In Wrocław alone, the supply exceeded 1 million sqm with Tri-City and Kraków not far behind. These three markets are responsible for 70 percent of the volume of new supply, but the growth of developers’ activity can be seen all over Poland,” said Łukasz Dziedzic, market analyst at JLL.

The total demand in the first half of 2018 in the office market amounted to 686,500 sqm, of which 40 percent was in the main markets outside Warsaw. Some 430k sqm of office space was delivered, including 256.1k sqm outside Warsaw.

“Polish cities are developing dynamically and the commercial real estate sector is an important part of this change. The benefits of creating new urban spaces are becoming more and more important for developers wanting to influence the process of city expansion and development. Such investments include, for example, Monopolis in Łódź, Nowy Rynek in Poznań or Unity Center in Kraków. Activities of developers and city authorities stimulate the development of a given area, making it attractive for companies as well as responding to local needs The change in the approach to new projects is also due to the growing awareness and requirements of tenants and competition between developers,” said JLL regional markets director Karol Patynowski.

The vacancy rate in Poland is at 10.2 percent, including 11.1 percent in Warsaw and 9.3 percent in other markets. The highest vacancy rate (19.7 percent) is in Lublin, and the lowest is in Tri-City (6.7 percent).

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