At the end of Q4 2020 total modern office stock in the aforementioned eight regional cities amounted to 5.79 million sq m.The largest regional office markets are Kraków (1,554,900 sq m), Wrocław (1,226,300 sq m) and the Tri-City (888,600 sq m).

In 2020, over 393,300 sq m of office space was completed, mostly in Kraków (140,700 sq m), Katowice (61,300 sq m) and Tri-City (60,300 sq m). In Q4 2020 there were six projects delivered to the market with the largest one being Face2Face B (26,200 sq m) by Echo Investment in Katowice,Hi Piotrkowska (21,000 sq m) by Master Management Group in Łódź and Unity Tower (15,600 sq m) by GD&K Group and Eurozone Equity in Kraków.

At the end of Q4 2020 in the eight major regional markets almost 736,600 sq m remained vacant, resulting in a vacancy rate of 12.7% (increase by 0.8 pp q./q. and increase by 3.1 pp compared to the end of 2019). The highest vacancy rate was recorded in Łódź - 16.4%, when the lowest in Szczecin – 6.9%.

The total volume of leasing activity in 2020 amounted to 582,200 sq m, which is 16% less than in the same period last year. However, in the fourth quarter of 2020 alone the volume was 26% down y-o-y. Since January 2020 the largest volume of space was leased in Kraków (156,600 sq m) and Wrocław (128,400 sq m).

In the annual take-up, the highest share in transaction volume was attributed to new deals: 47% (including pre-lets transactions and owner-occupier deals). Renewals of current lease agreements attributed to 38% while expansions to 13%. Approximately 2% was adapted for owner occupiers needs. In the Q4 2020 alone, new agreement accounted for the largest share - 57%, whereas renewals and expansions accounted for 35% and 8%, respectively.

The largest transactions executed in 2020 include Allegro signing a pre-let agreement in project under construction - Nowy Rynek D1 (26,000 sq m), a renewal of the ABB’s contract in the Axis office building in Kraków (20,000 sq m), a pre-let transaction by ING Tech Poland in Global Office Park A2 tower building (16,600 sq m), a pre-lease transaction of Fujitsu Technology Solutions in the Fuzja project in Łódź (16,300 sq m) and a confidential client transaction in Tertium Business Park II in Kraków (14,500 sq m).

KrakówWrocławTrójmiastoKatowicePoznańŁódźSzczecinLublinStock*1,554,9001,226,300888,600589,700582,900578,500183,400183,200Vacancy*217,500183,40084,40054,00075,90094,60012,60014,300Completions**140,70057,20060,30061,30018,30051,5003,4000Take-up**156,600128,40087,70065,00063,20062,4009,2008,800

* Data at the end of Q4 2020

** Aggregated data for the whole 2020