The year 2021 was much better in terms of the number of transactions concluded than the previous two years. Office investments that are under construction are leased at a much faster pace compared to the previous years. Our observations show that practically every office building on the day of receiving the occupancy permit is rented in 70-80 percent, which was not so obvious even in the period before the pandemic - says Dorota Kościelniak, regional director of Colliers in Wrocław.

While 2020 was marked by the renegotiation of lease contracts, in 2021 there was a percentage increase in the number of new contracts concluded in the demand structure (67% in 2021 vs. 23% in 2020). The new contracts mainly concerned relocation of companies to new office buildings. On the other hand, a clear decrease in the share of renegotiations is noticeable - in 2021 it amounted to 28%. vs. 37 percent in 2020. For comparison, renegotiations and extensions of existing contracts in total on 8 major regional markets accounted for 43 percent. registered in 2021 demand.

The largest transactions concluded in 2021 in Wrocław include pre-let 3M Service Center EMEA in the MidPoint71 office building (12.3 thousand sq m). It is also the largest relocation transaction on the Wrocław market in 2021.

2021 was also a continuation of the office space modification processes related to the introduction of the hybrid work model. The change in office functions has an impact on the vacancy rate, which at the end of 2021 was 16.7%, which is the highest result in the history of Wrocław since 2016.

The pandemic forced companies to adopt a more flexible approach to the workspace, increasingly leaving employees the choice of where to perform their duties. This is an opportunity for the development of the flex space market. In 2021, a new location for City Space was opened at West4Business Hub, new operators such as Rise.pl also appeared on the Wrocław market. The Polish company has launched a coworking space in Sagittarius Business House, and another office will be opened in City 2 later this year.

Although in 2021 only approx. 21 thousand were commissioned for use. sq m office space, i.e. nearly 37 thousand. sq m less than in 2020, Wrocław remains the third largest office market in Poland.

The low level of supply will not last long. There are 85,000 jobs under construction. sq m office space. Most of these investments should be completed by the end of the fourth quarter of 2022 - says Dorota Kościelniak.

The past year has shown that there are offices in high-standard buildings on the tenants' radar. Owners of several-year and several-year-old facilities, which constitute the majority of the city market, will face the difficult task of adapting their offer to the growing expectations of the market and competition, introducing further improvements.

The issues of ESG and sustainable development are becoming one of the stronger new trends in the real estate market, especially in the office market. Wrocław is no exception here. This is evidenced by, inter alia, a rapid increase in the supply of certified, "green buildings" and more and more modernization of already existing office buildings - says Dorota Kościelniak.