According to the report ‘Occupier Economics: Office market in Wrocław, H1 2020’ by Cresa consulting company, the vacancy rate in this market at the end of June 2020 was 11.2 percent. Compared to the previous quarter, it dropped by nearly 1 percentage point, and there was almost 132,700 sqm of free space in the market.
“Wrocław has shown relatively high resistance to the negative effects of the pandemic. Despite the lack of new supply in the second quarter, the vacancy rate in existing buildings decreased, which indicates continued interest of tenants in this region. Some companies decided to sublet the space in order to reduce the lease costs until the situation stabilized. However, Wrocław's position among the IT sector is still not weakening, which perceives the capital of Lower Silesia as a good place to develop its business by extending lease agreements or renting new space - both as part of expansion and relocation,” Michał Grabikowski, Director of the Wrocław office of Cresa Polska, said.
The volume of transactions in the second quarter of 2020 amounted to over 14,700 sqm. Agreements signed in total since the beginning of this year constitute approximately 46 percent of the annual average for 2015-2019. It was another quarter of the IT sector dominance, generating as much as 83 percent of demand (65 percent in the first half of this year). Among the types of contracts, expansions (39 percent) prevailed, followed by renegotiations (35 percent) and new contracts (25 percent).