Polish office tenants satisfied, but they want more

The coronavirus epidemic has limited the activities of many companies in Central and Eastern Europe (CEE), causing financial problems and the need to temporarily transfer some employees to remote work. Half of the office tenants in the region have entered into negotiations with property owners, primarily regarding rent reductions, according to the CBRE's CEE Occupier Survey. Their effects turned out to be satisfactory for 17 percent of tenants. In Poland, the percentage of those who are fully satisfied was 24 percent, which places us first in Central and Eastern Europe. Almost one third of tenants in our country are partially satisfied and still expect more flexibility.

“The deterioration of the financial situation and the limitation of the use of office space prompted many tenants to talk about negotiating contracts. It turns out that many of them, although not easy, were successful, especially in Poland. An interesting challenge for the market may now be the fact that some companies expect greater flexibility in concluding contracts, including, for example, shorter rental times. At the same time, however, the interest in modern space in city centers is not weakening and so far everything indicates that the epidemic will not leave a significant mark this year in the levels of rents or other rental conditions,” Łukasz Kałędkiewicz, member of the operational board of CBRE Polska, Senior Director, Head of Advisory & Transaction Services, said.

According to CBRE data, the situation related to the coronavirus has prompted more than half of office tenants in Poland to discuss the terms of lease with real estate owners. Nearly four out of ten decided to fight for rent cuts, and around 13 percent negotiated obtaining rental-free periods. One fourth considered the results to be satisfactory, which is the highest result in the CEE region, and 31 percent achieved unsatisfactory results and still expect more flexibility. On the other hand, 45 percent did not benefit at all.

(WBJ)