Office market insight after Q3 2016

Colliers International released a newest edition of its „Market Insights” report concerning the commercial real estate market in the largest cities in Poland after the third quarter of 2016. The office part of the publications says that the total volume of office stock in Katowice reached the level of 428 900 sq. meters.

© Colliers International; largest office markets in Poland (Q3 2016)
© Colliers International; largest office markets in Poland (Q3 2016)

It means that Katowice remained the fifth largest office market in Poland after Warsaw, Kraków, Wrocław and TriCity. In Q3 2016, 121 700 sq. meters of modern office space was delivered to the market. In Warsaw, one project was completed, while in regional cities the highest level of development activity was recorded in Kraków and Katowice.

During the period under analysis, regional markets were characterized by an increase in new office resources comparable to previous quarters. Developers delivered 93 000 sq. meters of modern space in regional markets, the largest completions were recorded in Katowice (24 500 sq. meters), after Kraków (34 600 sq. meters).

Since the beginning of the year 46 office projects with a leasable area of nearly 315 000 sq. meters have been completed in regional markets. The largest projects delivered in Q3 2016 were CH2M (14 200 sq. meters) in Kraków, Maraton A (13 200 sq. meters) in Poznań and two projects in Katowice – the second building of Silesia Star (12 400 sq. meters) and the third stage of A4 Business Park (12 100 sq. meters).

Additional 45 400 sq. meters of modern office space was under construction in the city last quarter. Tenants leased 30 800 sq. meters of offices in Katowice during the three quarters of 2016. Rental rates ranged between EUR 12,5 and 14,5 per one sq. meters per one month.

In regional markets, the lowest vacancy rate was recorded in Kraków (6,3%) and Łódź (9,3%). In other cities, the vacancy rate amounted to over 10%. The highest availability rate of office space is currently in Katowice (15,5%) and Szczecin (14,7%).