Regional office market in Poland on the rise

The regional office market in Poland has been showing clear signs of dynamism this year, according to Walter Herz analysts. Over 900,000 sqm of modern office space is under construction in the eight largest regional metropolitan areas, which is more than Warsaw with over 600,000 sqm. The demand for offices in regional cities remains at a stable, high level. In the first half of this year, in the biggest office markets outside Warsaw, over 220,000 sqm of office space was ready for occupancy, out of which 80 percent was in Kraków, the  Tri-City, and Wrocław.

In H1 of 2016, the total supply of office space in the main regional markets amounted to 830,000 sqm in Kraków, 757,000 sqm in Wrocław, 630,000 sqm in the Tri-City, 395,000 sqm in Poznan, and 345,000 sqm in Łódź, compared to Warsaw, which still remained far ahead at 5 mln sqm. New office space coming on the market in HI in these markets was 66,500 sqm in Kraków, 52,500 in the Tri-City, 48,500 in Wrocław. 23,000 in Łódź, and 11,000 in Poznan. Vacancy rates ranged from 6 percent in Kraków to 13.5 percent in the Tri-City.

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