Wrocław on the rise
Office & mixed-use development“After Kraków, Wrocław is the second largest regional market in Poland as well as the third largest market nationwide. In the first six months of 2017, demand for office space in the capital of the Lower Silesia region was nearly 92,000 sqm. Such favorable results are a consequence of the high level of activity among tenants from the business services sector. In H1 2017, they accounted for 60 pct of demand for office space in Wrocław. According to ABSL, the city is one of the three largest locations in Poland for investors from the business services sector. The 140 centres in Wrocław already employ 40,000 people – nearly 17 pct. more than at the beginning of 2016. The city is also proving to be highly popular among new investors. This is illustrated by companies such as Epiq Systems, Mahle and TigerSpike debuting on the market,” said Katarzyna Krokosińska, an associate director the head of the Wrocław office department at JLL.
In H1 2017, total demand on the Wrocław office market came to nearly 92,000 sqm. The two biggest deals were signed in the Business Garden complex for both space in the completed section and the section still under construction. Credit Agricole signed a lease for 15,500 sqm and Capgemini for 13,100 sqm. The third largest transaction was the pre-lease agreement signed by EY for 10,500 sqm in the Sagittarius office building.
“By the end of H1 2017, total office stock in Wrocław totaled 873,100 sqm. Regardless of the fact that 2017 will see a lower amount of new completions compared to 2016's record-breaking performance, the significant volume of space under construction (267,300 sqm) will guarantee the rapid development of the Wrocław office market. The biggest projects under construction include Business Garden (Vastint), Sagittarius Business House (Echo Investment), City Forum (Archicom) and Cu Office (Buma/Reino Partners). As for 2018, the total modern office stock in Wrocław will be likely to surpass 1 mln sqm,” explains Łukasz Dziedzic, a consultant, in the research and consulting at JLL.
By the end of H1 2017, the vacancy rate in Wrocław was 8.5 pct, 4pp lower than the previous year. The city's highest prime rents per sqm per month averaged at between EUR 13.9 and EUR 14.5.
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