According to the 'Occupier Economics report: Kraków office market H1 2020 ' prepared by the consulting company Cresa, the volume of transactions concluded in the second quarter of 2020 amounted to almost 52,600 sqm. The dominant type of transactions were renegotiations (76 percent), followed by new contracts (15 percent) and expansions (9 percent).
The largest lease transactions in the first half of 2020 include: renegotiation of the ABB lease agreement in the Axis office building (20,000 sqm), pre-let 14,500 sqm by a confidential tenant in Tertium Business Park II, a pre-lease agreement concluded by Lufthansa Global Business Services for 8,300 sqm in the Wadowicka 3 office building (building B) and renegotiation of an 8,000 sqm lease by Ericsson at DOT Office E.
“In the second quarter of 2020 in Krakow, we could observe an increase in vacancies and a decrease in newly leased space. The amount of office space under construction shows, however, that developers are not afraid of lower demand from tenants. Moreover, they keep rental rates at the same level. Despite the fact that the remote work model is gaining popularity, the future of many companies will be built on the basis of workplaces located in modern office buildings. In this respect, the capital of Małopolska already has an established position as the strongest outsourcing center in Poland and systematically attracts many new foreign investors,” Karolina Słysz, Doradca, Business Development Coordinator in the office tenant representation department of Cresa Polska, said.
At the end of the first half of 2020, the stock of the Krakow office market amounted to 1.49 million sqm and increased by almost 14 percent compared to the same period last year.