Commercial property market sentiment expected to improve

2020 has brought many changes to the Polish commercial property market. The warehouse and industrial sector, whose total stock has already surpassed 20 million sqm, has emerged largely unscathed from the market’s turmoil, with leasing activity likely to set another record. Investors’ interest has focused on this market segment, which accounted for as much as 72 percent of the investment volume in Poland in the third quarter alone. The office sector fared worse as it saw both muted investment activity and a year-on-year decrease in office take-up. Poland’s total office stock amounts to more than 11.7 million sqm, while close to 1.2 million sqm is currently under construction. In Warsaw alone, there is now 522,000 sqm of office space underway in many interesting high-class projects, many of which still offer space to let. On the retail market, while shopping centers are experiencing difficulties following the reintroduction of restrictions, there is a growing number of consumers beginning to enjoy convenience stores and retail parks. 

“The outlook for 2021 gives hope for a gradual return to normal that everyone is looking forward to. Technological changes that were introduced at an accelerated pace during the pandemic will have a positive impact on many business processes and improve the comfort of space occupants. Most development projects are running as scheduled. Construction of some new buildings will be postponed and the proportions of uses will probably change. We must remember that the state of the economy is very important to the health of the commercial real estate market. Poland’s GDP growth is now picking up following the fall in consumption and overseas sales in the early days of the pandemic and is nearing 2019’s levels by the quarter. According to the OECD, if this trend continues, the Polish economy will contract by only 3.5% in 2020, posting one of the strongest performances in Europe,” Iga Kraśniewska, Research Manager at Cresa Poland, said.

(WBJ)