From January to the end of June 2022, Colliers' experts from the Tenant and Owner Representation departments advised on lease transactions of almost 160 thousand. sqm - it is about 60 thousand. sqm more than in the same period last year.
We are in the process of evolving the office market. Some companies are still developing strategies regarding the work model, including the demand for office space, but the market is already seeing growing tenant activity. We still observe interest in new spaces - especially among companies from the modern business services sector - BPO, SSC. On the other hand, in the decision-making process, issues related to ESG are very important and whether and what solutions supporting the implementation of its requirements by tenants the building has, explains Paweł Skałba, senior partner, director of the Office Agency Department, Colliers.
The largest volume of transactions with the participation of Colliers' experts in the first half of 2022 was recorded in Warsaw (34.3 thousand sq m), Poznań (12.6 sq m) and Kraków (12.2 thousand sq m). The result in the capital of Greater Poland ensured Colliers the position of a leader in the region among consulting companies in transactions related to tenant representation.
In the first half of 2022, the Owner Representation division finalized transactions for 75.2 thousand sq m. sq m, of which the vast majority concerned the Warsaw market. We are observing a large increase in tenant activity compared to the same period in 2021, which confirms the increase in demand on the Warsaw market by 92%. compared to the previous year. The vast majority of transactions finalized in the first half of the year by the landlord representation division are renegotiations, the share of which in the demand for office space is constantly growing - says Izabela Kapil, director of the Owner Representation Division in the Office Agency Department, Colliers.
The transactions represented by Colliers were dominated by renegotiations and expansions. The new contracts covered over 70 thousand. sqm offices, which confirms the growing activity of tenants.
As you can see, contrary to initial assumptions, the pandemic did not cause offices to disappear from the market. Some companies, such as City Space, not only decided to stay in a location that they had occupied for years, but even expanded. What has changed is the work model. In a large number of companies, it has changed to hybrid, which forced tenants to adapt their office space to the new realities and needs of employees - says Paweł Skałba.
The largest transactions in the first half of this year with the participation of Colliers' experts include: the renegotiation and expansion of the space leased in Plac Unii by ING Bank Śląski, in which Colliers represented the owner of the building, as well as the renegotiation of a lease agreement of 8.5 thousand. sqm in the Park Rozwoju building in Warsaw's Mokotów district by Schneider Electric and the renewal of the lease contract of 7,500 sqm by OLX in the Maraton A office building in Poznań, where Colliers represented the tenant.
In the first half of this year, almost 480,000 sq m was leased in Warsaw alone. sqm office space. This is more than in the record years of 2018 and 2019. This was due to the unblocked decisions of tenants from the past year. Demand for office space has almost doubled compared to the first half of 2021.
The increase in demand translated into a decline in the vacancy rate, which currently amounts to 11.9% in the capital. (compared to 12.5% in the first half of 2021). On the other hand, in the nine largest Polish markets, this indicator increased and now amounts to 13.6%. (compared to 12.9% in the first half of 2021). 1.7 million sq m is available for lease all over the country. surface.
The strong rebound in the market on the demand side contributed to the stabilization of the vacancy rate in Warsaw at the level of 11.9%, which translates into almost 748,000 sq m. sqm available space. Another 240,000 sq m is under construction. sqm The decreasing supply and the maintenance of the demand dynamics, which we anticipate, may create a supply gap in the Warsaw market. As a result, there may be an increase in headline rents in new projects located in the central zone, which currently stand at EUR 19-25 per sq m. in a month. So we are at the moment when tenants are actively looking for offices and want to secure attractive space on good terms now - emphasizes Paweł Proński, director in the Office Agency Department at Colliers.