The key catalyst behind further growth of Poland’s regional office markets is the BSS sector, which is increasingly expanding into smaller cities as tenants continue looking for attractive alternatives outside Warsaw. This is benefiting such locations as Krakow, Wrocław and Tricity and all the regional markets are seeing multiple modern office projects underway in response to the growing occupier demand.
In 2017, global real estate services firm Cushman & Wakefield represented clients in regional office lease transactions which totalled nearly 130,000 sq m. It led the way on the leasing markets in Krakow, advising both landlords and tenants on 51,400 sq m of transactions, in Wrocław (31,300 sq m transacted for tenants) and in Tricity (28,700 sq m transacted for tenants). Cushman & Wakefield was the first global advisory agency to open an office in Lublin. The firm also conducted lease negotiations on non-core office markets, including Kielce, Luboń, Opole and Rzeszów.
“Despite a relatively weak increase in office supply in Wrocław in 2017, new projects are being delivered to this market, attracting large organisations to the capital city of Lower Silesia. Other impacting factors include strong macroeconomic fundamentals, the city’s special atmosphere and the growing tech start-up community. I am confident that the robust economic landscape will encourage other Polish and international businesses to open offices in Wrocław,” said Marcin Siewierski, Associate, Office Agency, Cushman & Wakefield.
“Tricity is seen as a resident-friendly agglomeration: a thriving green space sitting between a protected natural area and the beautiful beaches of the Gdansk Bay. With recent major improvements to transport connections with other Polish regions, Tricity enjoys a huge potential to attract employees. This has been recognised by both clients we had the pleasure to represent across many transactions and investors. There is approximately 170,000 sq m under construction in nine modern office projects in Tricity, mostly in Gdansk. Most are expected to be delivered by the end of 2019. Tricity also boasts a large supply of Class A office space in buildings aged less than six years, thereby offering a very high standard,” said, Adam Schroeder, Associate, Office Agency, Cushman & Wakefield.