Office supply hits record highs in regional cities

New office supply in regional cities in Poland hit a record high of 243,500 sqm in the first quarter of 2022, representing an uplift of 5 percent on the previous peak in the fourth quarter of 2019, reveals real estate advisory firm Savills. More new office space was delivered in the first three months of this year alone than in the whole of 2021.

At the end of the first quarter of 2022, total office stock in Poland’s core regional cities (Krakow, Wrocław, Tricity, Katowice, Poznań, Łódź, Lublin and Szczecin) stood at 6.27 million sqm, says Savills. According to Spotlight: Office Market in Regional Cities, the latest report from the international real estate adviser, Kraków – with 1.64 sqm of office space – remains the largest regional city office market.

“New lease transactions continue to outnumber renewals, which bodes well for the further growth of the Krakow office market. Steady supply growth coupled with increased occupier demand is expected to support the gradual absorption of vacant office space in the coming quarters,” Agnieszka Kuehn, Regional Manager, Office Agency, Savills, said.

(WBJ)