According to Cresa Poland report’“Occupier Economics: Office Market in Katowice H1 2020’, office take-up hit more than 26,500 sqm in the January-June period, accounting for 55 percent of the annual average for 2015-2019. The second quarter recorded 6,140 sqm of leased space. Renegotiations accounted for the largest share of the leasing volume in Q2 (64 percent), followed by new contracts (25 percent) and expansions (11 percent).

“The pandemic had a major impact on the performance of the Katowice office market. Unfortunately, Silesia is one of Poland’s regions hardest hit by Covid-19, which made companies opt for a slower return to offices. Companies introduced a hybrid work model or extended remote working. Tenants renegotiated office lease agreements, looking for cost optimization. There are many sublease offers on the market. Companies are postponing decisions to relocate – while new contracts prevailed in the first quarter (76 percent), they totaled only 25 percent in the second quarter. Projects that have already broken ground are underway, including .KTW II (TDJ Estate), Global Office Park (Cavatina), and DL Tower (DL Invest Group). Developers that have not commenced construction yet are monitoring whether demand will follow the supply side,” Elżbieta Golik, Advisor, Office Department, Cresa Poland, said

At the end of H1 2020, Katowice’s office stock amounted to close to 559,500 sqm, up by 6 percent y/y. Only one office building was delivered to the Katowice market in Q2 2020 – DL Piano (11,500 sqm, DL Invest).

(WBJ)