REDD platform is the first in Poland to publish the "Months of supply" indicator showing the condition of the office property market in Poland.
"Months of supply forecasts how many months it would take to rent all currently available office modules, taking into account the current pace of rent. A low ratio may mean that supply is not keeping up with demand, in a moment there may be no vacant offices. A high result is a signal of possible oversupply and evidence that there are more offices than willing tenants," Piotr Smagała, managing director of REDD, said.
The average for key markets in Poland is currently 23 months. Łódź has the highest rate (31.7 months), while the lowest - Kraków (17.7 months). Tri-City (22.3 months) and Katowice (22 months) move the closest to the average.
"These numbers show that the market seems stable and healthy. We began to monitor these numbers and in the long run the results will show the condition of the market in Poland," Smagała added.
In recent weeks, REDD has observed with concern the rapidly growing resources of available office space, which at the peak moment increased by over 160,000 sqm. Against this background, the first days of May bring the expected stabilization. At the end of last week, the vacancy rate per area was 2.38 million sqm.
"However, when analyzing the Warsaw market, one should recall a clear downward trend in the area of free office modules. Since the beginning of April, the average free office space in Warsaw has decreased by over 7 percent and currently amounts to 494.1 sqm," Judyta Bartnicka, Big Data Analyst, REDD, said.