Tricity still wooing tenants

According to the latest Cresa report entitled ‘Occupier Economics, Office market in TriCity in 2017’ the office leasing market is stable. “The record levels of cargo through the TriCity’s ports and the significant investment in port and transport infrastructure have had an impact on the office space market in the TriCity. We see growing interest from companies that intend to exploit the current economic boom in the logistics and shipbuilding sectors,” explains Michał Rafałowicz, the Pomeranian regional director at Cresa Polska. At the end of 2017, the supply of modern office space in the TriCity came to PLN 696,400 sqm. Eight projects were delivered over the year, including Alchemia – phase III (36,000 sqm, Torus), BCB Business Park – B2 (9,250 sqm, Bałtyckie Centrum Biznesu) and Tensor Z (6,600 sqm, Euro Styl). Almost 149,000 sqm still remains under construction. The construction of the tallest building in the TriCity, Olivia Star (about 40,000 sqm, Olivia Business Centre), which is scheduled for delivery this year, is nearing completion. At the end of the year, 56,800 sqm were vacant, accounting for 8.1 pct of the total office resources in the region (a decline of 2.9 percentage points year-on-year). Last year, lease agreements were signed for a total area of 117,700 sqm (an increase of nearly 26 pct compared to the same period of 2016). “The previous year was record-breaking in terms of tenant activity in TriCity. Considering the amount of supply planned for 2018 and assuming the level of tenant activity will be maintained, rental rates should remain at the current monthly level of EUR 13 to 14.5 EUR per sqm in class A buildings, and EUR 10 to EUR 11.5 per sqm in class B buildings,” explains Bolesław Kołodziejczyk, the market research and consultancy director at Cresa Polska. Cresa predicts that the SSC sector will continue to grow due to the high quality of life and number of higher education facilities. Investors from 19 countries have their operational centres in the TriCity and services are provided in 33 languages. The upward trend in thedevelopment of modern business services in the TriCity should continue over the next few years.