Poznan’s strength continues to lie in its stability

    Warsaw, 19 May 2021 – According to “Office Occupier: Office Market in PoznaÅ„”, a report published by real estate advisory firm Cresa Poland, total take-up reached 4,700 sqm in Q1 2021, down by 64% on the same period last year. Renegotiations accounted for 83% of the leasing volume, while the remaining 17% came through new leases.
    
“PoznaÅ„’s office market remains a safe haven for both tenants and investors. It is therefore likely to become a major beneficiary of the further expansion of BPO/SSC, high-tech and e-commerce companies. The latest data for the first quarter of 2021 shows that PoznaÅ„ is a mature market with a healthy supply-demand balance. New office projects will be gradually delivered to the market until 2023, which should enable the market to absorb new space and prevent a sharp increase in vacancies,” says Artur Sutor, Partner, Head of Office Department at Cresa Poland.

At the end of March 2021, total office space in PoznaÅ„ amounted to 582,900 sqm, up by just 0.5% over the year. PoznaÅ„ is the sixth-largest regional office market in Poland, with the average annual five-year growth rate at 10.5%. Although no office building was delivered to the market in the first quarter, this year is expected to see two completions: building D of Skanska’s Nowy Rynek and building C of the Mercator office complex.

“Of all the regional office markets, PoznaÅ„ posted the slowest pace of growth in office space over the year, but development activity did not grind to a complete halt as construction work began on Andersia Silver and building E of Nowy Rynek,” says Iga KraÅ›niewska, Research Manager at Cresa Poland.

Only five lease agreements were made in the three months to March in Poznań for a total of 4,700 sqm, down by 64% on the same period last year. Renegotiations accounted for 83% of the leasing volume, while the remaining 17% came through new leases.

The largest office transactions in Q1 2021 in Poznań included: a renegotiation in the Business Garden B1 (3,300 sqm), a new lease in the Ratajczaka 19/RB House (700 sqm) and a renegotiation in the Maraton A office building (600 sqm).

Absorption hit almost 2,900 sqm between January and March, representing an increase of 89% on the first quarter of 2020, driven by the falling vacancy rate.

The city’s vacancy rate stood at 12.5% in the first three months of the year, down by 0.5 pp on the previous quarter and by 0.4% compared to the same period last year.

Asking rents range between EUR 12.5–16/sqm/month in PoznaÅ„’s city centre, and EUR 11–14,5/sqm/month outside city centre.

 
Cresa is the world's largest commercial real estate advisory firm that exclusively represents occupiers and specializes in the delivery of fully integrated real estate solutions. It serves clients through more than 80 global offices. Cresa Poland offers unbiased, independent commercial real estate advice. Its integrated services include conflict-free tenant representation, capital markets, market research and advisory, valuation, design & project management and workplace strategy. To learn more, please visit: www.cresa.pl